Issue link: https://read.dmtmag.com/i/132118
Feature line. Because the cards are pre-funded from a main account, there's no credit line for the employee to access. With standard business credit cards, managers do not have the same ability to limit access. Reason No. 4: Standard business credit card and fleet cards or credit lines are often insufficient for transportation companies. As a result, fleet card companies often require weekly or even daily payment to keep the card program open, or transportation companies are forced to make multiple payments to stay under credit card lines. Further … when fuel prices rise, lines of credit rarely changes in tandem, so you may unexpectedly find your drivers stranded with no way to stay fueled and on the road. With a prepaid business debit card, managers can stay in control of how much money is in the main account. As your business needs expand or contract, you decide how much money is available for employee expenses without the risk that employees will be turned down because of a bank-assigned limit. Reason No. 5: Today's small-business owners are progressively rethinking how to thrive in today's economy with limited credit histories and mobile workforces. Because prepaid debit cards eliminate the burden of interest charges, limit fees and late fees, companies can more efficiently manage their spending and allocate funds appropriately. Reason No. 6: Prepaid business debit card providers never order a credit report—not on you or your business. Standard business credit card issuers and fleet card companies usually order credit reports on the business owner or authorizing officer as well as the company. There's no reason to do so with a prepaid business debit card. After all, it's your company's money; why would the provider need to know your credit history? Reason No. 7: There's no personal liability with a prepaid business debit card program. With standard business card programs, the owner or authorizing officer is held responsible for the company's debt if the business is unable to pay. With a prepaid business debit card, there's no personal liability. Reason No. 8: Even companies that are happy with standard fleet cards desire a "companion card" for emergency or non-traditional but authorized expenses. Business prepaid debit cards offer the perfect solution because the fleet manager can provide universal convenience without the risk of a credit card. He/she does this by providing cards with little or no funds on them – adding funds instantly only when their drivers have a need. In today's small-business climate, the challenge to constantly and consistently "do more with less" is alive and well. There are more than six million business owners with employees and/or contractors who are typically underserved by commercial card and fleet card issuers. Businesses are facing critical financial challenges, including employee spending control, funds disbursement problems for remote employees purchasing travel and job-related materials and card abuse, as well as the misuse of corporate funds. By streamlining employee spending, progressive organizations can eliminate the traditional financial burdens of credit management, and allocate their time, attention and resources to operations that truly impact the bottom line. OO / Owner operator/ June 2013 / / 18 OO 0613 edit.indd 18 5/8/13 8:35 AM