Pay and Reclaim ‘vs’ Fuel Cards
Millions of businesses are spending more on fuel than they need to when they could be saving money by using a fuel card, however businesses don’t know what the benefits are.
Recent research carried out by Allstar has found that currently one in ten businesses are using fuel cards as the main way to pay for their fuel with manufacturing and construction the main industries that are likely to operate this way.
Those who do use fuel cards, highlight there are a number of advantages to using them. Almost three quarters of businesses confirmed that a significant benefit is it helps them to keep track of what they spend on fuel and 69% reported that it helps employees as they are not left out of pocket until their expenses are reimbursed.
Currently 2.1million businesses use a pay and reclaim system so almost half of employees are paying for fuel themselves and claiming the cost of fuel back on their expenses – leaving them out of pocket. However 20 percent of businesses using this system would consider using fuel cards in the future.
This still leaves a staggering 80 per cent of businesses who use pay and reclaim not interested in using fuel cards. The biggest barrier here is inertia – businesses have the misapprehension that it won’t save them any money or provide any benefit and claim to be happy with the system they are currently using.
If people did know the benefits they would be more likely to use a fuel card.
Not only does it reduce administration costs but it can save a business a substantial amount of money.
In addition to the reclaim system one in ten businesses prefer to issue credit cards to their employees to pay for their fuel and half of those who do use credit cards are sceptical that a fuel card could save them any money. But almost a third would be happy to try using a fuel card in the future.
So pay and reclaim or fuel cards – fuel cards! The key reason being businesses have financial control and employees are not left out of pocket waiting to be reimbursed.