Have you ever looked at the company credit card bill to find unexpected expenses? Have sudden credit limits caused problems for traveling employees depending on their cards? Credit can be a useful tool in growing a business, but there are times when cash on prepaid cards is better than credit.
When employees have debit cards instead of credit cards, you can add funds as needed. You can also view purchases throughout the month. This ongoing communication with employees regarding business expenses can prevent surprises at the end of the month. You can manage your budget and your employees know what they can spend.
It will also never be a surprise how much money is available for your business travelers. With credit continuing to tighten, limits can change with very little notice. And when the limit is reached, often times the cards will stop working. This can bring business to a halt. Conversely, with a prepaid debit card, you always know how much money is available. This lets you confidently put funds on the card and know that necessary purchases can be made, saving you time and aggravation.
So what is your game plan for those times when cash is better than credit?