Top tips on choosing the right fuel card for your small business

Choosing the right fuel card for your startup or small business can seem confusing, especially when it comes to finding the one that delivers the benefits you need. Fuel is an unavoidable cost, but one you can potentially make some savings on while running an efficient fleet.

If you’ve never used a fuel card, you’re probably wondering what your best option is and where to start?

In a saturated market this can be a challenge, so icompario shares their tops tips on how to choose the best fuel card for your business. 

Do you need a fuel card?

Before you do anything, take some time to consider whether you need a fuel card. If you’re a small business and typically use one vehicle daily, you may find that having a fuel card could cost you more than paying at the pump. Whereas, having a fleet of cars could result in significant savings, especially as you continue to grow.

When you’re confident that you will benefit from having a fuel card, it’s time to start thinking about choosing the right one for your business.

Different types of Fuel Cards

It can get tricky working out what fuel card is right for you, but you must make a well-considered choice.

Pump price or Fixed-price

Some fuel cards will give you the option to choose pump price or fixed priced. Pump price typically has more locations across the UK but are based on the price you see at the pump. This means you will be open to fluctuations in fuel prices, which could negatively affect your finances. Whereas, fixed price fuel cards are, as it would suggest set at a fixed price for the week. This allows you to save when pump prices increase, and only pay the difference when they decrease. You could also benefit from discounts depending on what company you choose to go with.

What brand to choose

This will depend on your business and the journey you will be making every day. If you tend to remain fairly local, you may want to consider a card with your local supermarket. This will differ if your fleet travels across the UK, in this case, a fuel brand card will be your best option.  

Fuel cards will have an advantage depending on how you travel, whether it’s local regional or national, there are quite a few options to consider. 

Fuel and fleet type

Every business has different needs, so be aware of your fuel type; this will help you choose between diesel, petrol or mixed fuel cards.

Always consider the types of vehicle you will need a fuel card for. As a small business looking to expand, you may only have a couple of vans on the road right now, but soon you will have a lot more, so choosing the right fuel type is important. Pay close attention to how your cars are driven and whether this will have an impact on the fuel card you choose. 

Spending control

This is a great feature; it gives you the ability to decide what your fuel cards can be used for. Some cards are limited to fuel only and others will allow you to add on other expenses that your drivers may need on the road. This varies from food to hotels and gives you drivers ease from saving receipts and filling expense forms, that you will later have to log.

 Administration

You can save a lot of administration time here and that is a massive bonus. Instead of your drivers paying cash and later having to process every receipt, a fuel card charges your weekly spend in one single invoice, from your bank account. 

This will also mean less time spent working out your VAT, allowing you to allocate more time to other areas in your business.

More to consider

Whilst it’s important to save on your fuel it’s also a great idea to keep an eye on your fleet and monitor their productivity as well as assess routes taken, and possibly suggest alternatives. This feature will be built into most fuel cards along with the possibility of breakdown cover, so make sure you take the time to find the best option for your business.

Also keep an eye out for hidden costs, such as failed payments, postal invoices and card protection. 

Time to choose

Now that you are clued up on what fuel offer are and how your business can benefit, it’s time to start comparing companies and choose the best one for you. It’s important to keep in mind that even after you’ve made your choice, you will need to keep an eye on performance as your business grows.

Switching isn’t the most exciting experience, but as times goes on your requirements may change and that needs to be reflected in your fuel card.