Most small business owners want to be able to get credit cards for their businesses so that they can enjoy increased flexibility for their purchases. Credit card companies may deny new businesses that have not been open for long periods of time. They might also deny business owners who have problematic credit histories. If you are searching for credit card companies that can offer your business the best features at the lowest rates, you might want to consider getting alternative cards instead of traditional business credit cards.
Understanding credit card companies
Credit card companies make money by charging consumers high interest rates on their card balances along with annual fees. When people apply for credit with credit card companies, the companies check their credit and turn down those that the companies believe are risky. These credit checks also cause the credit scores of applicants to fall, impacting their ability to get other types of credit in the future. Before applying for credit for your business, it is important that you consider alternatives to business credit cards.
What is an alternative to a business credit card?
Visa® debit cards through Bento for Business are a great alternative to business credit cards. Gaining approval does not depend on your credit, and applying will not impact your credit score. You deposit money into your account, and can order up to 10 cards for a low fee of just $29 per month. Funds held within Bento are FDIC insured to at least $250,000 through The Bancorp Bank, N.A.; Member FDIC. Bento for Business uses the same high-level encryption technology that is used by banks, allowing you an added layer of security and protection.
How do the prepaid cards work?
When you fund your account, you can then designate how much money that you want to place on each card. You are also able to establish spending categories for each employee. For example, you can limit an employee to purchasing gas at the pump while allowing another to make purchases of office supplies. If any employee attempts to make disallowed purchases, the transactions will be denied. This ability to control spending can help to end losses from employee theft and credit card abuse.
After you order your cards and fund your account, you will have 24-hour per day access to your account from your mobile device. From your interactive platform, you will be able to view your card balances and your employees’ transaction histories. If you need to stop an employee’s access because of problems, you can do so instantly by clicking a button. This can alleviate concerns about how to retrieve cards from employees that you have been forced to terminate. When you turn a card off, the employee will not be able to spend any more money or to run up the card’s balance.
The data from your individual cards can be directly imported into your company’s accounting software for simplified tracking. The combined ability to control spending and to manage expenses can make your business more efficient. You will save time and money by getting rid of antiquated reimbursement form procedures while giving your employees the flexibility that they need to do their jobs.