A fleet of vehicles can be a couple of vehicles to hundreds of vehicles. Companies use these vehicles for business purposes which include sales, delivery and other business-related activities.
Depending on the size of your fleet and other factors like your location and use of the fleet, there are measures you can use to bring down your cost of operations. Things like fleet cards and fleet insurance can make a big difference in your cost to do business.
Continue reading to find out more about the potential benefits of using fleet cards and if they are right for your business.
What You Need to Know About Fleet Cards
Running a small business is no easy task. The stress of planning and putting strategies into place can be difficult on your mental health. Every decision you have to make uses your mental capacity but we aim to make your decision on fuel cards for small businesses easy and painless.
Before we discuss all the benefits, let’s look at a quick overview of what a fleet card is.
You can purchase or lease fleet vehicles. Whether you are purchasing or leasing doesn’t have any effect on whether you can get a fleet card or not. Fleet cards are designed for companies that deliver, travel to clients or carry equipment to job sites.
When you decide to go with company cards for fuel, each vehicle operator gets their own card. Employees are instructed to charge all driving-related expenses to this card.
Only authorized business owners are allowed to open a card account for themselves or an employee. Most times a social security number of an authorized personnel is required before an account is validated.
Most fleet cards operate under joint-liability. Joint-liability means the company and the owner are liable for charges. Under certain circumstances, your company may qualify for business only liability for the card.
Card providers may be large oil and gas companies or specialized companies that provide these cards. Different companies require different qualifications depending on their terms and conditions policies. Make sure to thoroughly read through all terms and conditions before partnering with a fuel card company.
Whether your company is still small like when you or if it is growing steadily, company gas cards can be helpful. Review these five benefits to see if fleet fuel cards could be right for you.
1. Alerts
For the business owner that doesn’t want to take too much control over fuel, you can set up alerts. You can set your preferences for what kind of alerts you would like to receive, so you aren’t overrun with pings throughout the day.
Alerts from the location of purchase, time of purchase and even alerts if unleaded fuel is purchased for diesel vehicles can make life a lot easier and give you peace of mind.
2. Ability to Control Purchases
Purchase controls are the next level over getting alerts. PINs are used each time to driver uses the card which allows you to easily track purchases.
You can set limits on how much money they are allowed to spend per transaction as well as how much money per week, day and more. Check with your particular provider to see what options are available.
3. Manage Accounts Online
Instead of tracking fuel expenses manually, fuel cards for businesses connect to an online system. These online systems allow you to track expenditures online and view each of your accounts.
You can update, cancel, issue cards and more through your online portal. The ability to access your accounts online cuts time waiting on customer service.
4. Fuel Tax Exemptions
Depending on your location, you may be subject to partial sales tax exemptions. If your fleet qualifies, you can make it easier at tax time and keep from filing for refunds.
Check with your tax professional before making decisions based on this information due to the variance by location.
5. Discount Network
Companies are happy to partner with you and give discounts for making them your primary source of fuel. See if the card you’re considering has a discount network built in or if you’ll need to set the discount network up on your own.
What Businesses Should Consider Using These Cards?
If you are waffling with the idea of whether or not to go with a fleet card, you should understand who fleet cards are designed for. Not every small business needs a fleet card.
If your company only has one vehicle, this is a sure sign you don’t need to get a card. Fleet cards are credit cards designed for use with fuel, repairs, and maintenance of the fleet.
While they do allow for discounts, there are fees to pay the same as any other credit card. If your business doesn’t need them, it’s best to have one less credit card in your wallet.
On the other hand, these cards can be very helpful if your business has two or more vehicles. If your fleet is using around 1,000 gallons of fuel a month or more and you want to limit or monitor your fuel expenses, you are a good candidate.
Before jumping in with both feet, speak to more than one representative to find out what the best plan is for your company. Different providers offer various plans to make it simple for you and your employees to put these cards into play.
Staying In the Know
When you started your business, your understanding of the complexities of being a business owner might not have been totally correct. Business has a way of taking on a life of its own and figuring out whether to use fleet cards is only one of many decisions required.
Planning your business before you get started is important. Having a clear and precious business plan can help you through the tough decisions. Read our process for more help to ensure your company is off to a great start.
