In a word: time.
Any time spent not delivering outcomes is costing you money and one of the biggest time killers for a small to medium business, is the process of obtaining corporate credit cards from the bank.
Your staff need to make purchases on behalf of the business and the old-school way of doing this through banks? Well, let's just say it's not all sunshine and rainbows. Which brings us to why we've written this article.
We'll look at the challenges small-to-medium-sized businesses (SMBs) encounter when navigating the complex world of financial institutions with example businesses, and we'll also discuss why prepaid corporate cards may be a better fit for SMBs.
The waiting game
Imagine a bustling small tech startup in Melbourne, with 20 employees, let’s call it “SwiftTech”. The company is growing rapidly, and they need to issue a corporate debit card for their new marketing manager, Sarah. The CEO, Mark, has heard that banks can take weeks to issue a new card.
Mark contacts his bank and begins the process of obtaining a new card for Sarah. He submits the required documents, fills out forms, and waits patiently. Two weeks pass, and there's still no sign of the new card. Mark contacts the bank, only to find out that there was an issue with his application, and it needs to be resubmitted. Frustration builds as another week goes by without a resolution.
The endless paperwork
Meanwhile, across the country in Sydney, a family-owned retail business called “Sydney Emporium” faces a different kind of challenge. The business has been around for decades and has always used traditional banks for corporate card issuance. However, their experience has been plagued by excessive paperwork and bureaucracy.
When the HR manager, Lisa, attempts to get a new card for their store manager, John, she is overwhelmed with paperwork. She has to gather documents from John, fill out multiple forms, and make multiple trips to the bank branch to verify information. Weeks turn into months, and Lisa's desk is piled high with documents and forms that seem never-ending.
Prepaid corporate cards: simplifying the process
The traditional method of issuing corporate credit/debit cards through banks has proven to be fraught with challenges and inefficiencies. As demonstrated by the examples of “SwiftTech” and “Sydney Emporium", these challenges can hinder business growth and productivity.
Prepaid corporate cards through providers like Budgetly are a relatively new option that is better for SMBs in a few key ways:
- Quicker and easier to set up. No need for endless bureaucracy - you can issue new cards in minutes, and receive physical cards within days.
- Increased financial security, as you aren’t borrowing money from the bank.
- You can control and limit spending by applying rules to each card.
- There is no need to reimburse employees, reducing the amount of time spent on the manual tasks that are typically involved with this process.
- It reduces the likelihood of employees sharing cards (a logistical nightmare for expense tracking and reporting). Because you can issue as many cards as you like, with as much or as little budget as you like, it is much easier to issue cards to staff members who need it.
- You can manage and monitor cards from a central dashboard, meaning financial controllers can easily track where money is being spent, and by who - in real-time.
- Better support. Because you aren’t dealing with big banks, this option usually means that you will receive better, more tailored support for your business. Make sure you check review sites to see which provider receives the most, and best, reviews (psst...you can check out our reviews here).
Want to find out if Budgetly is the right fit for your business? Book a 10 minute demo with us today!
