The term ‘funds availability’ can make or break a business depending on how fast a small business owner can access the cash.
Whether you are taking a business loan, borrowing money or getting paid for your services, the process should be quick. Running a business can be compared to a closed loop circuit. If there is a break at any point, you cannot expect the loop to work. Only when you get paid on time, you can pay someone and see to that there is no glitch in running your business operations.
Today, most of the business owners are using a business prepaid card. The reason is simple. This flexible financial solution is providing convenience and ease of doing business.
Now, let’s not deny this. Business owners are facing a lot of issues while dealing with their cash. And you can actually define those underlying factors in terms of time and flexibility.
SCENARIO I:
Let’s say you have applied for a small business loan and qualified one. Now, do you think you can have the money on the same business day?
No of course not.
You have to wait certain business days before you can access your funds. The funds availability delay will not help your business in any way. The money you get is good only if you get it on time.
SCENARIO II:
The money available for your business need not be only through banks. It also can be through other means and that includes your customer payments.
Most of your customers pay you through checks. However, there are a lot of inconveniences associated with this system. To get cash out of those checks, you again have to be in the waiting game. Suppose, if the check is bounced, then altogether you’ll losing money, time and the cost of collection.
If you analyze both the scenarios there are a lot of things that are contributing to this matter. Today, all the traditional banks are providing online services. But irrespective of that, consumers still face problems, accessing their money. They are not able to get the funds available to them at the need of the hour.
Switching to a Business Prepaid Card: Funds Availability Made Easy
One of the major benefits of a business prepaid card is that it helps you streamline the access to funds. That means you’ll experience less delay and get money fast. It can be anything. Maybe you’re taking a small business loan or any forms of funds or receiving funds, everything will be quick.
How does that happen?
This financial model works for the convenience of its users.
As a small business owner, switching to a business prepaid card will be one of the best decisions that you can make. You’ll enjoy a lot of benefits. And one the major advantage is you’ll pay and get paid earlier.
CASE 1:
Today, getting a business loan requires a lot of work. In addition to that, you have to meet many requirements that are normally very challenging for a new business person. In most of the cases, small business owners will be rejected for a loan. But that is not a problem in this day and age. Because there are so many online lending programs that you’ll not feel difficult qualifying for one.
On the flip side, even if you qualify for a small business loan, it will be sometime before you can have your money. Now, this is something you have to look into.
What is the use of money when it is not available in the need of the hour? And how does a business prepaid card fit in all this?
Let’s say, you qualified a loan program from an online lender. You’ll be surprised to know that you can have money on the same day. And you can access that easily if you have a business prepaid card. You don’t have to wait for many business days and meet all your business finance needs immediately.
CASE 2:
You are facing cash issues and it’s hurting your business financial model.
Actually, there are many reasons for a business person to face cash issues. One of the most common reasons is not getting paid by the clients within the schedule.
Most of the small business owners make this mistake. They give huge credit term to all their customers. The result is they will be having huge sale numbers, but no cash inflow.
However, there is a solution for this – invoice financing.
If you have a huge number of unpaid invoices then you can take up online invoice factoring services and get money over the unpaid bills. But think, what would happen if the online lenders are operating through a checking account like a traditional bank? again, you’ll face some delay in accessing your money.
Fortunately, if you are using a business prepaid card for managing your finances then you’ll not face any such issues. Your money will be directly deposited on your prepaid card on the same day and you can use the money for any purpose.
The Bottom Line
Using a business prepaid card, you don’t just access your money fast, but you’ll do it in a safer way. Unlike credit cards, there are no transaction charges or annual fees. With a business prepaid card, you can shop online and even draw the money from the approved ATMs.
The cash transactions will be quicker and you’ll enjoy better business growth making timely decisions.
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