Can Fuel Cards Save a Small Business?
Oct 5, 2023
You may have already heard about some of the more widely-known benefits of company fuel cards. In this article, we’ll talk you through some of the lesser-known benefits. Because when you’re a small company jostling to survive in the competitive UK market, squeezing every last saving can make a huge difference.
Let’s talk credit rating
Just like using a credit card for your personal finances can help with your credit rating, using a company fuel card can help with your company’s credit rating. It’s the same principle – regularly paying on time shows you’re a reliable and trustworthy business when it comes to your finances. Being able to easily share these records can benefit you if you’re looking for any business loans or even when you’re in negotiations with your suppliers.
Speaking of negotiating
Providers of fuel cards for small companies usually have great relationships with their network of fuel stations. This means they can offer you certain discounts and rewards. You could even negotiate specific benefits that suit your business, like bulk-buying fuel if your employees travel a lot. Harnessing these relationships can add a lot of incremental gains that add up over the course of a year.
On top of this, some fuel providers can offer you services beyond fuel cards and discounts. Things like breakdown cover, plus maintenance and repairs. All these can significantly lower the overall cost of running your company vehicles, giving you peace of mind that you’re not paying over the odds from different providers. And as the relationship grows over time, you could even renegotiate better terms.
Staying tax compliant
One of the great benefits of fuel cards for small companies is how easy they make filing your taxes. It can be massively time-consuming for a small business, especially when an individual is likely to be doing more than one job role. Fuel cards keep up-to-date records of your company’s fuel expenses and give out invoices that are compliant with HMRC. This means there’s less room for mistakes due to human error, which can result in hefty fines.
Looking after the environment
Many new businesses choose to start off on the right foot when it comes to looking after the environment. Choosing a fuel card provider that partners with eco-friendly fuel stations would therefore be a big benefit, helping you stay true to your company’s green ethos. These cards help you keep on top of your carbon footprint. You can even earn rewards for using their greener fuels. Great for the planet and employee morale.
Looking after your employees
Fuel cards can be a benefit not just to your company but to your employees as well. The perks for using the cards and sticking to budgets can add to your staff’s overall package. It means employees don’t have to use their own personal money and manually do their expenses, which can be time-consuming and inefficient for them. Streamlining the process and adding bonuses on top can be very attractive to prospective employees.
Giving drivers control
Fuel cards for small companies give their drivers a level of control and accountability. Knowing the limits and not having to use their own funds helps drivers stick within the lines. Keeping track of what individual drivers are spending means you can reward those who are staying on budget, encouraging others to do the same.
Forward planning
Finally, every small business needs a plan to grow. More advanced fuel cards systems can give you in-depth reports on fuel expenses, helping you spot patterns and recurring trends. This can help with future decisions like working out which vehicles might need upgrading and which routes are the most fuel efficient. This is time better spent improving your operations, as opposed to using up time on admin tasks like sorting fuel receipts and uploading onto the system. With that all taken care of, you can focus on what will help your business in the long-run.
So can fuel cards save a small business?
The long list of benefits, from the obvious to the lesser-known, make fuel cards an important tool for any small business where travel plays a key part. The incremental gains could add up to make a huge saving. Whether it’s making a business more financially stable and therefore better able to negotiate lower costs. Or reducing the risk of time-consuming activities like sorting out tax compliance. With fuel cards in your arsenal, your small business could survive and thrive.