Frequently asked questions
What are the benefits of prepaid business cards?
Prepaid business cards are a convenient way to manage your spending.
- Limited access to funds: Your employees can only spend as much money as they have access to, and it’s up to you how much that is.
- No credit check: If you’re a new business that hasn’t built up a credit history – or an existing business with a rocky one – you’ll still be eligible for a prepaid business card.
- No maximum circulation: You can have as many prepaid cards in circulation as you feel comfortable with.
But when you use Soldo’s prepaid business cards, there are a number of additional benefits:
- No risk of overspending: You can not only decide how much they have on their cards, but also when and where they’re allowed to spend their balance.
- Real-time transaction data: You can see everyone’s purchases as they happen from Soldo’sweb console, and get notified the moment there’s an unusual purchase.
- Simpler expense reconciliation: Every transaction is matched to a cardholder, who can upload a picture of their receipt at the point of purchase via our app.
Simpler accounting: You can upload transaction data straight into your accounting software, and seamlessly integrate your console with Xero and its bank feed.
Good for morale: Your employees won’t need to spend their own money and wait until the end of the month to be repaid.
Prepaid business cards - Are they right for my business?
Whether your business is made up of five people or five hundred, Soldo prepaid cards could be a great option for you.
They’re particularly useful for startups and SMEs because there’s no need to build a strong credit score before you apply. And they’re particularly useful for large businesses because you can confidently allocate as many as you like across the entire business.
Do prepaid business cards work with accounting software?
Those that do, like Soldo, can export and import transaction data to Quickbooks and other accounting apps. Soldo’s payment console also seamlessly integrates with Xero, including its automatic bank feed and accounting APIs.
This is particularly useful for accountants, as they’ll be able to get a closer insight into how and where your money is being spent and offer answers for how to make things run a little more smoothly.
Do I need a credit check with a prepaid business card?
This is useful if you’re just starting out and haven’t built up a credit score yet, or if you’ve had some trouble in the past and it’s reflected in your rating. As you never have any credit to pay off at the end of the month, you can’t damage your credit score. On the other hand, if you’re looking to build your credit score by paying your bills on time, or even just diversify your history, you won’t be able to do it with a prepaid business card.
What are the alternatives to prepaid business cards?
Out of pocket: You can ask your team to cover their own expenses and claim the money back at the end of the month. This may be problematic for those who need to pay for expenses they just can’t afford, and can have a big impact on morale. Plus, they’ll still need to spend time filling in expense claims and tracking down old receipts.
Petty cash: You might have some petty cash which employees can use for small ticket items. But it won’t be suitable if they need to purchase anything bigger, and your finance team will need to put a lot of time into managing and registering who spends what and where.
Credit cards and debit cards: Like prepaid business cards, credit and debit cards give your team the freedom to spend what they need. But there are a couple of big issues: you can only give them to a small number of employees, and it’s difficult to make sure there’s no misuse.
How much does a prepaid business card cost?
It depends on the prepaid business card you choose. You’ll likely need to pay for continued use of the console and the cards, but these costs are much smaller than fees incurred by credit cards – and you’ll never have to pay interest on the balance.
You can find out more about Soldo’s pricing here.
No matter how big your team gets, there are all sorts of ways to stay in control of company spending. Read on to find out how.