In this dynamic era of small businesses, seamless management and financial flexibility plays a crucial role in driving success and growth. A Corporate debit card stands out as a game changer by offering an efficient solution designed specifically for the needs of small enterprises. It is a powerful financial tool to grow small businesses with a systematic control of their finances through easy expense tracking and cashless transactions.
Traditionally only cash has been used by these small businesses to run the transactions and expenses of their business. However, due to the advent of modern banking, digitized debit cards, purchases, and instant payments, it has become a tricky task for business owners who need to be educated enough to handle this digitized system of managing funds.
However, the use of a debit card by small businesses increases their potential to run and enjoy easy access to funds for payment and purchases, along with a variety of benefits, rewards and a lot more.
Debit cards – safe payment method
- A corporate debit card is the most easy, reliable, efficient and secure method to make payments, purchases and other transactions for a small business owner.
- Additional services are provided by banks on debit cards, such as coverage of items purchased and making transactions through Online banking portals.
- Tracking and monitoring each transaction made to ensure the safety of their funds.
1. Convenience
- The owner of a corporate debit card can use the card directly to enquire about money withdrawals, balance info and money transfer made to different bank accounts.
- With the invention of digitized banking, one does not need to physically visit an ATM or bank branch to keep a record of the transaction, as this can easily be done through an online banking platform on which you can link your debit card to access several features.
2. Cost-effective
- When compared to credit cards or cheque books, debit cards hold lower processing fees.
- When a business organization issues a debit card for their employees, they can limit the funds’ access for their employees to avoid overspending or theft.
3. Easy to use
- A debit card used by a small business or its employees helps them to make payments quickly, along with the convenience of avoiding the time-consuming hassles of cheque clearance.
- Most small businesses deal in cash and need to deposit funds into their account on a regular basis. However, several banks provide the facility for depositing money through debit cards, eliminating the need to stand in long queues and waste time.
4. Easy tracking and monitoring of payments
- Making timely payments of credit or any purchase is of extreme importance to maintain the creditworthiness of your company.
- Debit cards make it efficient for banks to analyze their finances and monitor certain payments against bills.
- It even protects the business from fraudulent retailers, agents or a vendor.
- It helps small businesses in managing and planning their finances, expenses and payments in a better way.
5. Finance management
- When a small business owner cannot afford to offer a corporate credit card to their employees, they can still issue a corporate debit card to their employees with a specific pre-loaded amount to control the spending made through the card.
- A corporate debit card issued to its employees can even help a small business to avoid extra unnecessary expenses and run out of budget by only making important business purchases.
How does it benefit an employee from using a corporate card?
- Efficiency is improved by issuing corporate cards to employees directly handling business transactions.
- A sense of responsibility and leadership occurs in an employee when a corporate card is issued in their name, which they can use for making business transactions.
Any small business or startup needs easy and cost-efficient access to banking instruments to avoid the hassles of bulky cheque books and cash. A small business corporate debit card provides a cost-saving and convenient banking experience, avoiding any troubles and hassles in between.
However, a small business owner must be smart and intelligent enough to track down how employees use the corporate card. Moreover, the finance management department must monitor the card used for purchases and when. Watching each corporate card might sound like a hectic task, but integrating these corporate cards with expense management software can be efficiently done.