With So Many Benefits To Using Fuel Cards - What If Anything Are The Disadvantages

May 19, 2010 - PRLog -- Using fuel cards in your business is simple.  Fuel cards work in a very similar way to ordinary credit cards except the card is restricted to purchases of fuel, oil and lubricants.   Used by businesses of all sizes to purchase petrol and diesel, at various service station networks, substantial savings can be achieved using business fuel cards.

Generally the overall benefits to your business of using fuel cards are:

•   Improved cash flow

•   Monitor and control fuel expenses more closely

•   Single invoice to manage – no longer piles of receipts

•   HMRC approved invoices, which means that you can reclaim, VAT on the fuel – in line with the EU Sixth VAT Directive

•   Improved security – cards can only be used for authorised purchases, matched to a vehicle, driver or both is of no use when stolen

With so many benefits what if anything are the disadvantages?

•   A fuel card means a restricted network of petrol stations, limited to a particular brand of fuel.  This could mean that drivers have to travel out of their way to find a forecourt where they can refuel.    Potentially wasting time, fuel and money so it is important to select a fuel card provider with a comprehensive and network or one that’s convenient, possibly both.

•   Many fuel cards are available only for businesses spending more than £300 per month on fuel so if you buy less the benefits are likely to be limited.

•   Some Fuel card companies charge you a cost-per-card or an annual fee per card issued and while this is usually more than offset by fuel savings it is something to bear in mind.

•   Generally the standard payments terms can mean that you receive an invoice every week with the payment taken by direct debit one week later.  This is a shorter credit period than standard credit card terms; however conditions can vary depending on your needs and credit ratings.

You might have a small number of vehicles that deliver locally; or a fleet of vehicles operating nationwide or across Europe or simply employees who use their own vehicles and reclaim mileage – if you're looking to reduce fuel costs, manage vehicle consumption or ensure that your fleet always has access to fuel wherever they are, then a fuel card will benefit your business.

Why not start talking to fuel card companies now – let us put you in touch with fuel card suppliers now at www.incisivebusiness.com

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Incisive Business creates business relationships; helping business buyers find suppliers and business suppliers find customers.