Over the past year, rising operational costs have left many business owners looking at where they can save money. Fleets, in particular, have been the subject of scrutiny when it comes to budgeting after the price of fuel significantly increased throughout early 2022. This strain on cash flow has left many business owners considering fuel cards as an option for purchasing fuel for their fleets.
Fuel cards are a method of paying for fuel for businesses. Employees use fuel cards to pay for fuel on the road and the fuel card provider then charges the business with a singular, regular invoice. There are a number of additional benefits to using fuel cards, but are fuel cards right for every business?
For businesses with a lower spend, usually under £500 a month, fuel cards will most likely not be cost-effective, and it would be more pragmatic to use credit cards or refuel at supermarket forecourts. However, if your company regularly spends a larger sum on fuel, you are likely to find fuel cards hugely beneficial. Businesses of all sizes, from sole traders to large-scale operations can use fuel cards and enjoy the many benefits they offer.
Andy Smith, Director of family-run fuel card company Fuelmate, says that “Fuel cards provide businesses with a cost-effective, secure payment solution coupled with valuable data insights delivering complete control to fleet operators.”
So, what are the main advantages of fuel cards?
Savings on fuel
Fuel cards that offer a fixed weekly rate can provide significant savings. Often, this price will be 1 - 2 ppl cheaper than the national average. You’ll find that the more fuel your fleet uses, the more money your business will save. You also have the ability to put a spending cap on cards, which makes implementing a limit throughout your fleet much simpler.
Streamlined administration
One of the most desirable rewards of fuel cards for busy business owners and fleet managers is convenience. The account contact will receive a singular HMRC-approved invoice, which takes away the need to collect receipts and track expenses. This gives you more control of your fleet’s spending whilst also saving you time and unnecessary effort.
Impressive coverage
One of the reasons business owners can feel apprehensive about signing up with a fuel card provider is the worry that, by being tied in with a card, their vehicles will have fewer options of where to refuel. However, most fuel card providers offer impressive coverage options, including national coverage, and can even suggest a tailored package of cards to make sure your fleet isn’t left without fuel.
Improved data collection
Alongside your regular invoice, fuel card providers will send a report that details elements of your fleet’s fuel usage. Providers offering advanced reports will even include information related to your fleet’s CO2 usage to make planning your carbon offsetting even easier. These valuable insights allow you to control your fleet’s output and locate any areas in need of development or drivers in need of training. For even more advanced data collection, business owners should consider the benefits of telematics.
Security
The use of fuel cards is also a huge addition to your company’s security. By implementing fuel cards across your fleet, you cut down on the amount of staff carrying cash. You can also limit the card’s spend and the products the card can buy. For example, many limit their fuel cards to use for fuel or fuel-related items, such as AdBlue. Many providers will also give customers access to online dashboards where they can cancel their cards quickly if needed.
Rewards
Depending on the fuel network that you would like to use, you may be able to use fuel cards to collect rewards. Most of the major UK fuel networks offer some kind of reward scheme that allows drivers to collect points. These points are redeemable by drivers for snacks and drinks or can be saved up for bigger rewards. Alternatively, drivers can exchange points for fuel discounts, saving your fleet even more expense.
Overall, fuel cards are an excellent option for businesses needing to control their fuel expenditure and simplify their administration. As businesses learn to adapt to the currently fluctuating and unpredictable market, fuel cards are a fantastic way to gain structure and insight.