It’s not uncommon to hear of people who have decided to use a prepaid credit card as a tool for managing their personal finances. But did you know that prepaid credit cards are replacing business credit cards as a business tool?
Prepaid credit cards are an easy way to get a grip on your spending by your employees. With a prepaid credit card you can set up your budget for something (say a technology purchase) and leave the actual purchase to employee secure in the knowledge that they can’t go over budget. You can’t say that about most business credit cards. An employee could blow your whole credit line on the purchase, perhaps spending three or four times what you’d budgeted. You can fire the employee – but you’re still liable for the debt involved.
The same prepaid credit cards help you manage expense accounts, as well as purchasing. Don’t want your employees to have infinite charging abilities on a business trip? Use a prepaid credit card to manage your company’s funds. If they spend it on lobster, well, they spend it on lobster. But at least everyone knows where the limits are.