Currently you may be using your company credit card for your business fueling needs, but you’ve considered using a fuel card for your business. But you don’t really understand everything that business fuel cards entail, so you continue to just use your credit card for fuel costs.
If that is your scenario, you are making a mistake. There are many benefits to businesses using fuel cards, especially when they have several company cars they are paying to fuel up, or if they have a fleet of vehicles they use for their company.
To help you understand a bit more, here is a simple guide to business fuel cards.
How do Fuel Cards for Business Work?
First off, let’s discuss how business fuel cards actually work. Fuel cards for businesses are very similar to normal fuel cards. In essence, they are like a credit card that you use to purchase your fuel with. You make all of your fuel purchases on your fuel card. And then once a month you pay your fuel card payment (just like you would a credit card payment for your credit card purchases).
But especially with business fuel cards, there are great savings associated with using this type of card over a credit card for purchasing your fuel.
What are the Benefits of Fuel Cards for Business?
Of course companies offering business fuel cards also offer many benefits to incentivise businesses using their cards. Here are some of the benefits of fuel cards for businesses:
Many companies that offer fuel cards for businesses will have contracts with many different fuel suppliers. These relationships enable the fuel card companies to offer discounts to their users. So, when you have a good business fuel card, you will usually be able to save a lot of money in your company fuel costs by gaining access to discounts at many different fuel suppliers.
2. Customer Care Number
Some business fuel card companies will offer a toll free number that will offer not only customer care services, but also driver support for users of the card (to help them find near fueling stations, etc).
If you work with a good business fuel card supplier, they should have some good reporting options for you. This will help you better track your company fuel use, minimize fuel fraud and overuse within your company, and better track your fuel expenses.
4. Better Tracking
Not only are you getting very detailed reporting on your company’s fuel costs (broken down by car/driver), but you will be able to keep your fuel expenses separate from your other business expenses (as opposed to all bundled together with all of the other expenses on your credit card). When you use fuel cards for business, you will receive one itemized invoice from your fuel card company each month. This will allow you to track and budget your fuel costs and usage completely separately.
About the author: Nicole is a blogger who writes about money saving tips & tricks.