Fuel is an operational cost that drivers and company owners cannot avoid. Rising and fluctuating fuel prices continue to challenge cash flow, often resulting in unexpectedly large payments. Despite these challenges, fuel is essential for keeping a trucking business moving, making it crucial to manage this expense efficiently.
In this article, we’ll explore the two key benefits that fuel cards for truckers have to help overall profitability. Let’s dive in!
Impact #1: More Savings in The Bank
When you buy fuel with a fuel card, you’re going to save cents on the dollar which adds up pretty quickly. Take our fuel card for example – the OTR Fuel Card, on average, saves truckers $0.51 per gallon. Depending on the truck you’ll save around $153, which is substantial and well worth it to any business looking to mitigate the rise in operational costs.
Wondering how much you could save with the OTR Fuel Card? Use our fuel savings calculator below.
Impact #2: Expense Management with a Fuel Card
A fuel card helps truckers and company owners manage their expenses more effectively. Fuel costs can vary widely by location and economic conditions, making budgeting challenging. With a fuel card, trucking companies can better control their fuel expenses, avoid unexpected spikes, and maintain a stable cash flow. This tool provides a safeguard against fluctuating fuel prices by offering consistent pricing and dedicated funds for fuel purchases, separate from the primary business account.
Who Should Use a Fuel Card?
Trucking companies of all sizes and ages can benefit from having a fuel card. The advantages are unmistakable, offering better expense management, consistent pricing, and dedicated funds for fuel purchases. Whether you’re a new operator or a seasoned fleet manager, a fuel card helps maintain a stable cash flow and control over fuel costs.
Types of Fuel Cards: Credit & Prepaid
In the world of fuel cards there are two types of cards: prepaid and credit. Neither truly has a benefit over the other, but it’s important to understand the difference between the two when choosing a fuel card for truckers.
Credit-Based
The first type of fuel card is a credit-based fuel card, which requires no upfront funds to purchase fuel. While this sounds advantageous, obtaining approval for such a card can be challenging due to the need for good credit. Additionally, these cards often come with interest charges and annual fees, making them a less accessible option for many trucking companies.
Prepaid
The second type of fuel card is a prepaid fuel card. These cards, unlike credit-based fuel cards, require payment upfront to use but do not have any annual fees and do not require credit approval. Consider prepaid cards like a virtual account of dedicated funds for fuel. Prepaid fuel cards are best for truckers who prefer long-term financial stability.
Which is Better?
The answer to which trucking fuel card is better is subjective; it depends on the trucker’s unique situation. If you’re looking for a simple answer, go for a prepaid fuel card, as it does not require credit, there are no annual fees, and there is no interest to be paid. Prepaid fuel cards are vital in securing a consistent cash flow for truckers.
Get the OTR Fuel Card Today
Looking for a prepaid fuel card with deep discounts on fuel? Look no further than the OTR Fuel Card. Enable cashflow success for your trucking business with the best fuel card for truckers.