Is a fleet card necessary to build business credit?

Everybody has experienced fluctuating gasoline and maintenance costs. During times of growing prices, you may charge a higher amount to your business credit card to keep your fleet in working order. This is typically simply a short-term fix, so ultimately you'll run into a problem when your credit card reaches its limit.

You might ask your bank for a company loan or a greater credit line. This is one approach to solving the issue. Utilizing a fleet card is an additional remedy. This card can assist you in establishing business credit while ensuring that all of your vehicles are properly fueled and operating. Fleet gasoline cards do, of course, have additional advantages. Fleet gasoline cards can be very helpful if your firm operates one or more cars, such as a plumbing company, a mobile pet grooming business, or a fast food restaurant chain that does deliveries. They're helpful for gaining discounts and perks, but they're also helpful for getting information on fuel prices and for better managing and controlling expenses.

Fleet gasoline cards can be useful to you in a number of ways, regardless of whether you manage a huge national trucking firm or a medium-sized fleet. Here are 4 advantages of using a gasoline card for your company:

driving comfort

When necessary, your drivers can purchase the fuel they require. The majority of gas stations around the nation accept fleet fuel cards. Corporate cards are accepted anywhere credit cards are accepted, but universal gasoline cards are accepted worldwide.

However, some cards don't provide all-inclusive protection. To make sure you are giving your drivers the most convenience possible in this situation, map the permitted gasoline locations for that fuel card provider in your operating zone. Finding the best gasoline pump could cost your fleet a lot of time and miles (if location availability is an issue, a universal fleet fuel card is a better option).

Automotive Maintenance

A number of maintenance services are also included in some of the more sophisticated fleet cards. Organizations can use fleet card reports to track a vehicle's regular maintenance checks by implementing a requirement that examines the distance each time a driver fills up. Fleet cards restrict where drivers can take their cars for repair, allowing businesses to guarantee that only qualified technicians are handling their fleet.

tracking purchases and preventing fraud

One of the main worries for fleet managers is fraud and driver credit card abuse. If there are no purchasing restrictions, drivers can easily fill up their own cars or add things from convenience stores to their purchases. You can keep tabs on who, what, when, where, and how much the driver spends by using fleet fuel cards.

Even further limitations can be imposed, such as a 50-gallon cap and only Monday through Friday 8 a.m. to 5 p.m. hours for refilling. You may manage your expenditure, lower fraud, and stick to your spending plan in this way.

Cut back on fuel costs

One of the largest costs for a business that travels frequently is fuel purchases, which account for around 70% of total fleet spending. Many fleet cards provide drivers with discounts at the pump, which helps lower fuel costs. Although the discount varies from card to card, fleet cards frequently give gasoline volume discounts. You can get anywhere from one to five cents off each gallon, or take advantage of a tiered "more you purchase, more you save" scheme.

Cash or a fleet fuel card

Credit cards are crucial for managing a business. Even if they have an excellent personal credit history, a new business owner or executive could struggle to get business credit because the company has little to no credit history. A fleet card can be a helpful tool for new small business owners. The good news is that applying for a fleet card is frequently simpler than applying for a business loan or even a regular business credit card.

Once you have the fleet card, all that is left to do is use the credit wisely. Consequently, a fleet card might be an excellent place to start when creating or reestablishing corporate credit. Fleet gasoline cards can also manage driver expenses, track fuel and vehicle maintenance, and help you save money on petrol. Make sure the fleet fuel card you select is more practical for your drivers and satisfies your business objectives before making a decision.