Small Businesses Need No-Strings-Attached Access to Funds — Here’s a Smart Option

The pandemic has had a profound effect on small businesses across the country. Seven months after the onset, resilient businesses have slowly begun accepting customers back into their shops, but things are by no means back to normal. Fewer customers and tighter local restrictions means less sales, with three-quarters of small businesses reporting that COVID-19 has caused revenues to dip. The lack of normal sales activity is exacerbating the delicate cash flow balance small businesses must regularly strike — a balance that was already out of sync from regional lockdowns in spring.

Now more than ever, small businesses need easy access to money in a way that doesn’t incur debt. Business debit cards are a great option for small businesses to easily access funds while avoiding borrowing cash.

The Pros of a Business Debit Card

Business debit cards come with a host of advantages, particularly for small business owners who are trying to better manage their finances.

The first benefit business debit cards hold over credit cards is the ease in actually obtaining one. These types of cards are easy to qualify for, and the process for receiving approval is often more expedited than applying for a credit card, given that business debit cards do not require a personal credit history check.

Aside from the convenience factor, business debit cards can be a great tool to help you manage your budget more easily. That’s because, when making a purchase with a business debit card, the money is drawn directly from your account — meaning you can only spend funds that you have available and don’t have to worry about paying off a balance or accruing debt. This also means that you never have to worry about interest accruing on past purchases.

How Square Card Offers Even More Benefits

For businesses that use Square to process payments, Square Card takes the business debit card to the next level and represents a smart option for business owners seeking an easy, straightforward way to manage cash flow.

A business’s Square Card links directly to their Square Balance, where sales they process via Square are stored. This enables instant access to sales funds, rather than waiting a day or more for earnings to transfer to an external business checking account, at no extra cost. This is especially beneficial right now, as 91% of Main Street small businesses are interested in real-time settlement of their merchant funds to combat cash flow shortages brought about by current economic conditions.

Like a regular business debit card, Square Card only allows you to spend money you have. However, unlike typical business accounts, Square Card holders are able to easily and instantly add funds to their Square Balance using an outside debit card, making cash management more efficient while ensuring business owners can cover expenses regardless of their sales that day. For example, if you’re looking to make a bulk order of supplies or products but don’t have enough funds in your balance, simply use a separate debit card to add the difference to your Square Balance immediately. What’s more, Square Card holders can see all of their transactions–including sales, transfers, and business expenses purchased via their card–in one place, giving small business owners an easier, more holistic view of their finances.

Business owners can sign-up easily online for Square Card once they’ve signed up for Square Payments. As soon as a card is ordered,  it can be used digitally right away via Apple Pay or Google Wallet while the card is shipped in the mail. Another added perk: Square Card has no annual fees, minimum balance fees, overdraft fees, or any other recurring fees.

A Smart Choice Moving Forward

A Square Card can help business owners get an immediate grip on their cash flow and provide peace of mind when unexpected expenses arise — relief that many small businesses need right now. It’s also a smart option for the future, providing small businesses with an easy path toward keeping their personal and business finances separate. Ensuring that personal and business finances don’t intermingle will benefit business owners in the long run and make necessary tasks like tax filings and bookkeeping more seamless.