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Fuel Cards: How Do They Work and How Can It Help Your Business Save

Fuel Cards: How Do They Work and How Can It Help Your Business Save
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Small-sized trucking companies with lesser cash flow often find it hard to compete with larger fleets. Driver salaries, 90-day old invoices, and supplier payables can take their toll on small-sized businesses. To top it all, the company also needs to allocate a considerable chunk of its operational expenses to fuel. 

If you’re in a situation like this, apply for trucking fuel cards from a factoring company. These cards serve as a credit line where drivers with authorized fuel cards can gas up with partner truck spots. Most fuel card operators have an easy application process, so getting approved would not be an issue. 

The Problem With Fuel Prices 

Oil price hikes and headlines about people paying more than they should for fuel no longer surprise consumers. Though these can be irritating for householders, it’s a massive problem for businesses that use vans, cars, and trucks daily. 

Most companies have to monitor their outgoing expenses to find how they can save on cost. This is where fuel cards to pay for diesel and petrol come into play. This option can help your business save some money. 

You Get The Best Fuel Price 

Since trucking fuel cards vary, you have to assess each one according to its own merits. Many factoring companies and fuel card operators fixed their fuel prices below the prevailing pump price. Other companies even pass the savings from smart sourcing fuel on to their customers. In whichever case, the fact that you pay less than the prevailing market pump price can already guarantee significant savings. 

Improved Expenditure Visibility

Fuel cards allow you to track your fuel spending. You can assign specific fuel cards per driver and vehicle. As such, you will have a better understanding of where overspending occurs and which option is fuel-efficient. Once you have identified these aspects, you may share best practices with your fleet and even reduce your total operational expense. 

Improved Cash Flow 

All the information that you gathered in tracking your fuel expenditures will rationalize your overall fleet expenses. This, in turn, can help you manage your fuel budget better. Also, the fact that you only pay through monthly direct debit already means you have lesser unknown expenses to track. You can anticipate when fuel expenses need to be paid every month. You can naturally improve cash flow management in this case. 

Lesser Receipt Errors

Most trucking fuel cards are integrated or connected to the business’ accounting system. Through this, monthly or weekly tailored reports can be generated easily. You no longer have to run after your drivers for coffee-soaked, screwed up, or lost fuel receipts. All receipts and related information are online, making it hassle-free for accounts staff, managers, and drivers. 

No Downside

The fantastic thing about fuel cards is its minimal downsides. This is the reason why most trucking businesses engage the services of fuel card operators. They can seamlessly run their business, manage their cash flow, and grow their trucking operation. 

If you have not tried fuel cards for your trucking business, you might want to consider this generous option now. You might be a small-sized now, but you can be one of the bigger fleets tomorrow.