In the UK, we are increasingly on track to become a cashless society, with card payments now more common than cash and almost 50% of those transactions being contactless. For businesses, this means finding alternative and sustainable methods that can be used for employee expenses. But what are the options?
With cashflow being the lifeblood of any business, managing budgets and minimising overheads are two key concerns. After all, effectively doing so could provide the funds needed to reinvest, promoting further development and growth.
One viable alternative could be prepaid cards. To see if this solution may be right for your business, here are five big benefits.
1.Better for Budgeting
As already outlined, managing costs is essential for any business, and this is where prepaid cards can be particularly advantageous. By loading a card with a specific amount, employees only have access to a designated sum. This works in two ways. Firstly, by preventing overspending. Secondly, by avoiding the accumulation of interest from large spends. Instead, your business can decide the spending parameters and better budget its finances.
2.Monitor Employee Transactions
In addition to being able to preload and manage employee spending, because cards are controlled by the company, this means administrators and finance officers have access to accounts. As such, the business is able to monitor transactions to ensure that funds are being spent appropriately. This puts control over expenses directly into company hands while also reducing the chance of improper spending,
3.Simplifies Company Payroll
As well as budgeting and monitoring, prepaid cards can benefit businesses by simplifying payroll. By providing employees with funds at the beginning of the month, it could help to reduce the number of expenses to be claimed back, minimise the amount of receipts to be sorted and cut back on paperwork. All of which can make payroll a simpler task and save on precious business hours. Also, if there are any queries, prepaid accounts can easily be checked.
4.Rewards and Bonuses
While benefitting businesses, prepaid cards can also offer perks to employees, too. They can be used as rewards for meeting targets, to incentivise teams, or loaded with a smaller amount and used as a bonus or gift. This can help to keep employees motivated while also allowing you to better manage company cashflow.
5.Advertise Your Business
While there are many cost-effective ways of marketing, prepaid cards can help, too. This is because many prepaid card companies allow you to customise your cards with your business logo. As such, every time an employee uses their prepaid card, your business benefits from additional exposure, which could help to boost brand recognition.
Although there is a lot to consider before deciding credit cards are right for your business, if you are already using credit or looking for a way you can better budget company finances and speed up processes, prepaid cards could be a viable option.
Take these benefits into account when making your decision and research providers like Prepaid Financial Services, who also offer numerous other perks like multi-currency cards and e-vouchers.