HR & Management

Avoid cash advances by using smart prepaid cards

5 min read

07 June 2017

Once you’ve handed over the cash to an employee, you’ve got no way of controlling what they do with it.

Find a penny, pick it up,
All day long you’ll have good luck!

Everyone knows the saying about finding lost money in the street.

But we rarely give enough thought to the poor person who actually dropped the penny.

The sad truth is that, when it comes to business cash, we’re all losing a lot more than we should.

The good news is that there’s now an easy way to avoid cash advances, and relegate petty cash to the annals of history.

Firstly, let’s take a look at why business and cash don’t make such a great couple.

The risk of loss

It’s easier to lose a £50 note than it is to lose the proverbial penny. For a start, you’ll never hear paper drop.

The more company cash you have floating around your employees’ pockets, the higher the risk of losing it.

The only way to eliminate the risk of losing precious company cash is to end your reliance on cash advances.

The question of trust

The old school essay challenge asks children to write about a day in the life of a penny. It’s for a good reason.

Cash travels. It travels fast, and travels far. It doesn’t need a passport and it’s impossible to track.

This means that cash is at risk of theft or – to put it more charitably – “misuse”.

Once you’ve handed over the cash to an employee, you’ve got no way of controlling what they do with it. And, with printable receipts now for sale by disreputable online outfits, you may not always be able to confirm that your employee spent it the way they said they did.

Again, for as long as you’re using cash, you don’t really have a way of controlling what your employees do with it.

Cash advances take time (and money!)

Cash can be the fastest and most immediate way of paying – but only if it’s already in the palm of your hand.

If one of your employees needs cash, it can often take quite a while to arrange. You may need to follow a company authorisation procedure and then of course, someone normally has to go to the bank and make a withdrawal.

It’s hardly the best use of company time.

And what happens if your employee needs cash at the last minute?

Most businesses expect employees to pay up front and then to submit an expense report for reimbursement at the end of the month.

But what if your employee isn’t able to pay up front?

And do you really want your employees to waste precious company time filling out expense reports and looking for lost receipts?

Cash will always be fraught with risk – let’s get rid of it! You don’t have these issues with a smart prepaid card.

A smart prepaid card eliminates the need for cash advances, once and for all.

Even if you’ve never considered a smart prepaid card, read on. Technology has come such a long way, that you could be missing a priceless trick if you don’t find out more.

These days, the right prepaid card will do more than fund your business’ cash expenses.

For example, Soldo Business, which allows you to give plastic or virtual Mastercard prepaid cards to your staff, gives employers absolute control over everyone’s spending.

Instant money transfers are free with Soldo Business; no-one will ever be left high and dry, and business can always carry along smoothly.

And, as the account admin, you can set bespoke budgets, controls and rules to fit everyone’s needs and trust levels to perfection. So, for the first time, you have a secure way of giving a spending card to junior or temporary employees.

No more expense reports with a smart prepaid card

Then, once the month is over, no-one will have to waste any more time on expense reports.

Two clicks, and Soldo Business will have everything wrapped up for you, with fast and accurate expense reports that integrate seamlessly with your existing accounts system.

If you’d like to kiss goodbye to cash advances, just have a look at Soldo Business for the perfect mix of flexibility, peace of mind and control.