Getting off the credit horse can be tough, especially for your small business which has both a longstanding relationship with your credit provider, probably a pretty good credit allowance, and likely a hefty balance to boot. Still, with all the cash hoarding, downsizing, and penny-pinching which has gone on in recent years, some small businesses may be flush with cash.
Right now may be the perfect moment for you and your small business to unleash the strings of confinement, shake off the credit chains which bind you, and begin to incorporate a debit card into your small business spending plan. However you’ve got to be careful if you’re going to undertake this episode. Here are some rules for how to incorporate a debit card into your small business spending plan.
Too Many Cooks: One thing you’ve got to be wary of when you’re beginning a debit card movement is that debit cards link up directly with your money. Real money is being spent and what they say about spending money is true, once it’s gone, it’s gone. You don’t want to let all your underlings (as much as you love and trust them) have access to your full coffers. One smart route is to give each employee with a card an allowance. It may sound complicated but if they had a $10,000 credit line that they had to account for every month, the same could be true for their debit cards.
Overspending: Another virtue and vice of debit cards is that the overspending thing isn’t possible. The house can’t extend a line with a debit card. Once the money’s gone, it’s gone. At the same time you and your employees need to be smart about this debit spending. One thing you should probably all go over and agree on before you begin this debit journey is budgeting. Do your employees have a good history with coming in “under budget?” Or were there employees who are constantly getting more credit, even though they were closing the sale. You don’t want to tramp on anyone’s success but at the same time when you’re using debit cards in lieu of credit cards, budgeting is definitely something you need to go over.
Of course you as the business owner need to be in charge of this debit card spending or you need to have a de-facto source, preferably not among the debit card users, who is in charge of these. Debit cards are a useful tool for any small business. If you are ready and able to remove the shackles which bind you into credit servitude, debit cards are a great choice for your small business solutions!