So you run a business with cars on the road. You already know that fuelling is a huge expense. Above all, fuel price volatility introduces significant unpredictability to transportation costs. Businesses are facing numerous challenges with logistics and management. This is where business fuel cards come in.
These are specialised payment cards that help companies manage fuel expenses for company vehicles. Whether you’re running a small business or managing corporate fleets, fuel cards are the ultimate solution to save money on fuel costs.
This guide explains what fuel cards for businesses are, how they work, and how businesses can benefit. Let’s dive in!
What is a Fuel Card?
A fuel card is pretty much like a credit or debit card. The only difference is that fuel cards for business are specifically designed for purchasing fuel and vehicle-related products.
Fleet drivers use this card at fuel pumps or service stations just like a regular card. But it’s linked to the business account. Each transaction is recorded, showing data, time, location, and fuel type. Billing managers can review every transaction through a centralised billing platform.
How Does a Company Fuel Card Work for Employees?
The mechanism of a business fuel card is pretty straightforward. Start by comparing different fuel card providers. Compare fees, discounts, network size, and reputation to choose the best fit for your business. You can either choose a general fuel card or opt for one with specific features, such as GPS integration or purchase controls.
The provider will typically ask for:
- Business details, including name, address, registration number, and tax ID
- Number of company vehicles
- Bank account details to send invoices
Once your details are verified, you’ll receive your company fuel card. Note that your employees and drivers must use the fuel card at an approved petrol station.
Benefits of Fuel Cards for Businesses
Still feeling on the fence? Here are some benefits of fuel cards your business can enjoy:
Wide Acceptance
The biggest advantage of using a fuel card is the wide acceptance. Fuel cards issued by reputable providers are accepted at over 90% of fuel stations nationwide. Depending on your specific business needs, you can opt for fuel cards with greater compatibility.
Enhanced Cost Control
A fuel card prevents unauthorised spending. You can monitor spending and even set product restrictions to ensure greater control over fuel costs.
Reduced Reporting Hassle
Keeping up with a mountain of crumbled receipts from your drivers is a nightmare. The chances of errors are also incredibly high. You’re not just losing money; you’re losing precious time that could go into growing and promoting your business. Fuel cards simplify expense claims. You can choose to receive monthly or weekly invoices from the fuel card provider, reducing the load on admin.
Detailed Reporting
Think of a fuel card as a tool to assess your fuel expenses. You can download a detailed report that provides insights into fuel consumption, mileage, and spending patterns. The result? Improved efficiency and cost-saving.
