February 25, 2020
Every small business needs to get from point A to B.
The real trick? Getting there efficiently and cost-effectively.
It’s no secret that fuel prices are skyrocketing globally. Take the UK as an example. According to a Bloomberg survey of gasoline prices around the world, the UK ranks 49th out of 61 surveyed countries. (And many European countries lag even further behind.)
Combined with a heavy VAT on fuel, these rising prices leave many small business owners feeling the pinch at the pump. On average, UK drivers shell out £1.26 per liter of gas (or $6.20 per gallon).
Like any smart small business owner, you do the math. An average medium-sized fuel tank can hold about 50 liters. Let’s say you fill up just one medium-sized vehicle, one time per week. That’s £63 per week or more than 72€ per full tank of gas. That’s more than £3,000 per year, for just one vehicle (nearly 4,000€)! Factor in additional vehicles, unclaimed VAT refunds, and the unpredictability of the road, and it’s easy to see why fuel costs can quickly soar.
So, whether you’re hauling goods, expanding your network, or knocking out your daily operations, taking advantage of fuel cards can help prevent a lot of headaches when your business hits the road.
What are Fuel Cards, Exactly?
Fuel cards are a type of limited, secure credit card that streamlines the fuel-buying process for you and your drivers. They give you access to exclusive discounts, digital spending records, and the security of a daily spending limit, helping you take charge of your fuel budget.
5 Ways Your Business Can Benefit from Fuel Cards
Let’s dive in.
1. Fuel Cards are User-Friendly
Convenient for you and your drivers, fuel cards reduce the hassle of time-consuming administrative work: no gathering receipts or creating expense reports required.
2. Fuel Cards are More Secure
In the past, drivers often carried large amounts of company funds for fuel, which both put them at risk for robbery and put small business owners at risk for fuel theft.
Fortunately, fuel cards have a daily spending limit, which you set yourself. They can also be assigned to a particular vehicle or driver, and they’re simple to open or cancel remotely. Imagine never facing fuel theft again, never losing a receipt, and always having access to your full deserved VAT refund. That’s a long-term peace of mind any small business owner can get behind.
3. Fuel Cards Provide Fiscal Flexibility and Grant Access to Lower Prices
No matter how big or small, every business is looking for a little more wiggle room in its budget. Fuel cards grant small business owners access to exclusive fuel discounts, balancing out the nominal annual membership fee. Member rewards are also available, providing a simple, useful way to show appreciation toward your drivers.
4. Fuel Cards Collect Useful Data, Which Saves You Money
Great data, more often than not, leads to great improvement. Fuel cards track every transaction in a tax-friendly invoice, putting a wealth of useful information at your fingertips. Armed with more in-depth knowledge, small businesses can build better budgets, track driver fuel use, and more precisely estimate their liters per kilometer.
5. Fuel Cards are Eco-friendly
By using the data collected via fuel cards, pinpoint and cut unnecessary spending. Reducing your fuel spending means reducing consumption, which in turn lowers your business’s carbon footprint.
Whether sustainability is a core value of your business, or just an amazing added benefit, using fuel cards will both green your business and save your business green.
How Much Can Your Small Business Save Using Fuel Cards?
Ready to get your business on the right track? To compare local fuel cards and find the best match for your small business needs, try the industry specialist-developed tool, iCompario.
Julia McCoy is a serial content marketer, entrepreneur, and bestselling author. She founded a multi-million dollar content agency, Express Writers, with nothing more than $75 at 19 years old. Today, her team has nearly 100 expert content creators on staff, and serves thousands of clients around the world. She's earned her way to the top 30 worldwide content marketers, and has a passion for sharing what she knows in her books and in her online course, The Content Strategy & Marketing Course. Julia also hosts The Write Podcast on iTunes.