Over the last few years, fuel cards have become an increasingly popular way for both large and small businesses to address their underlying fleet challenges. Part of the reason for this, is because the recession and rising fuel prices have forced many companies, to rethink their overall cost structure as well as business model.
Over the last few years, fuel cards have become an increasingly popular way for both large and small businesses to address their underlying fleet challenges. Part of the reason for this, is because the recession and rising fuel prices have forced many companies, to rethink their overall cost structure as well as business model. As a result, many organizations are increasingly utilizing different petrol cards in an effort to address these challenges. This is giving them a number of advantages that are helping to: improve their productivity and profit margins.
The Benefits of Using a Fuel Card
Fuel cards offer businesses a host of different advantages in comparison with other types of credit cards. The most notable include: it establishes a lower cost structure and it can streamline productivity.
Lower Cost Structure: The biggest advantage that any kind of fuel card offers is: lower costs in comparison with paying for petrol, through a corporate charge account. This is because the major oil companies will often add additional incentives, to sign up large corporate accounts. One way that this can be accomplished, is through offering these businesses a lower rate on fuel purchases. In some cases, this could mean that the business will be able to purchase their petrol, at a discounted weekly average rate (regardless of changes in fuel prices). This is important, because it allows executives to more effectively manage fleet costs.
It Can Streamline Productivity: A second advantage of using corporate petrol cards is that it can streamline the productivity of the organization. This is because these kinds of cards allow employees to pay for their different fuel purchases at the pump. When there a number of drivers this will save significant amounts of time, as they do not have to go inside for each stop. Instead, they can quickly refuel in matter of minutes and are back on the road (increasing productivity).
Clearly, fuel cards can offer a wide variety of businesses a number of different benefits (as far as their fleet is concerned). The most notable include: it lowers costs and it can streamline productivity. These two elements are important, because they can allow any organization to be able to increase their profit margins (despite the various economic challenges). As a result, those organizations that are increasingly using petrol cards will be able to see an improvement in their overall bottom line.
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