There are many advantages to using prepaid cards for business. These benefits are highlighted in the white paper, “Prepaid Expense Cards: Helping Small Businesses Solve Cash Flow Dilemmas.” This white paper was sponsored by Karmic and Mastercard, and prepared by the Mercator Advisory Group. First and foremost, prepaid cards for business are funded with money that is already in the bank, so many of the most common cash flow problems that affect new and growing companies are reduced or even eliminated. Based on that alone, it’s hard to imagine why more small business owners wouldn’t choose prepaid cards to manage expenses for their companies.
One reason many small business owners do not consider prepaid cards for business is that they are under the impression that the process to get a prepaid card for business is the same as it is to get a corporate credit card. This is especially true for those who have previously been turned down for business credit. If the thought of a credit check has been holding you back from using prepaid, we have good news! The process to apply online for prepaid cards for business is very different than the one to get a business credit card.
How to Apply for a Prepaid Card for Business
The first thing to know about getting a prepaid card for business is that there is usually no credit check involved. Because the card is funded in advance with money that is already in hand, applications are only subject to ID verification. However, because many prepaid cards are issued by a registered financial institution, the issuing company will be required to ask you some questions about you and your business to verify your identity and comply with government regulations.
The information that you are likely to be required to provide to obtain a prepaid card for your business includes a physical address, your date birth, taxpayer identification information (e.g., SSN, EIN) and copies of valid photo identification. In most cases, that’s all there is to it! Also, bear in mind that this information will be used only to confirm your identity, not to complete a credit check. When choosing a prepaid card for your company, be sure to review the associated terms of services to determine what the prepaid card company you choose does with your personal information, and don’t be afraid to ask what measures they have in place to protect it!
Get More Done With Prepaid Cards for Business
Prepaid cards for business can help make many of the common cash flow challenges for small businesses a thing of the past. However, it’s important to make sure that you are choosing the right prepaid card for your business. Whether it’s a closed-loop card that is used only at the retail location you favor most or a reloadable prepaid card that can be used at most of the same places that accept credit cards, the right prepaid card for your business is out there. If you select an option with integrated expense management tools, you can save substantial time and money on accounting-related functions of running your business.
The dash™ Prepaid Mastercard® delivers a prepaid payments card with an integrated mobile expense management solution at no added cost. Request a demo today to find out how dash can simplify the expense management and payments process for your business.