When it comes to running a small business, it can feel like there are always decisions to make; some easy and some incredibly hard. Whilst we can’t help with some of the more intricate parts of running your organisation, we can tell you one easy decision you should be making; introducing fuel cards. Why? It’s a no brainer! We’ve teamed up with the largest fuel card comparison site, iCompario to share five of our favourite reasons as to why your business should use fuel cards. And guess what? By the end you’ll be wondering why you didn’t make the change sooner… hopefully that’s one less decision for you to make!
1. You’ll Save Money
Did you know that on average, fuel purchased with a fuel card is up to 3p per litre cheaper? That means that for every business trip you’re making you’re actively saving on what you would normally be paying. Whilst it may not seem like much, those pennies can quickly add up to significant savings especially if your business relies on a lot of car travel. Savings depend on the country you’re in, the brand of fuel and the type of card that you have meaning that you could potentially save even more but one things for sure, you can be assured that you’re purchasing fuel at some of the most competitive prices available. Fuel cards do incur a small annual fee but this is quickly offset by those savings; paying for itself quickly.
2. You’ll Improve Your Cash Flow
You’ll find that most fuel cards invoice weekly which offers two benefits for your cash flow. Firstly, you’re not expected to find the monies there and then at the pump. Secondly, you’ll be expected to pay weekly smaller instalments which can be far more manageable. For a small business in particular this can mean that there’s less fluctuation in your fuel expenses each week making it easier to budget for and find the funding for. Finally, most fuel card providers offer credit periods of either 7 or 14 days giving you a little extra breathing room when it comes to finances.
3. You’ll Have Greater Control
A fuel card will allow you to have greater control over fuel spending and the tracking of mileage amongst users. Normally when a card is used, the user will be asked to provide a mileage figure which you can then use to get a firm control on the efficiencies of your drivers. You may notice that some are routinely getting a poor mileage per gallon whilst others drive in a more efficient manner, something which you can then highlight to your drivers to help them improve. Not only is this then helping you save even more, it’s helping you do your bit for the environment at the same time by reducing inefficiencies.
4. You’ll Save Time
We all know that there aren’t enough hours in the day and this is never more relevant than if you’re trying to run your own business. So anything that saves time should be a no brainer! By introducing fuel cards, not only will you save money but you’ll also save time – priceless. How? Fuel cards come with simple management software that collate all of the purchases in one place. That means you’ll no longer need to gather up multiple fuel receipts or chase drivers for expense forms because it’s all in one place. Even better, the lack of lost or missing receipts means that you can be certain you’re reclaiming the full amount of VAT due… so you’re saving not only time but money once again!