Business
12 min read

The Ultimate Guide to Choosing the Best Fuel Cards for Small Business in the UK

Emma Davis · Personal Finance Expert

Running a small business in the UK is challenging enough without worrying about fluctuating fuel costs. Managing fleet expenses efficiently is crucial for maintaining profitability and cash flow. This is where fuel cards come into play. They are not just a convenient way to pay for petrol and diesel; they’re powerful tools that can offer significant savings, detailed expense tracking, and enhanced security. However, with so many options available, choosing the best fuel cards for small business can seem daunting. This guide will navigate you through the maze of options, helping you make an informed decision that best suits your specific business needs.

Why Your Small Business Needs a Fuel Card

Before diving into specific card providers, let's establish why a fuel card is a valuable asset for your small business in the UK. Consider these benefits:

Cost Savings

One of the primary reasons businesses opt for fuel cards is cost savings. Many fuel cards offer:

  • Fixed weekly pricing: This shields your business from sudden price hikes at the pump, allowing for more predictable budgeting.
  • Discounts on fuel: Some cards offer direct discounts on fuel purchases, while others provide rebates or loyalty points.
  • Reduced transaction fees: Compared to using personal or business debit/credit cards, fuel cards often come with lower transaction costs.

According to the RAC Foundation, the average UK household spends around £2,000 a year on fuel, and for small businesses relying on vehicles, the cost is typically much higher. Optimising these fuel expenses with the right card can lead to significant annual savings.

Enhanced Expense Tracking and Reporting

Keeping track of fuel expenses manually can be incredibly time-consuming and prone to errors. Fuel cards provide detailed, automated reports, which simplify your accounting and tax processes. These reports can typically include:

  • Transaction details: Date, time, location, and fuel type.
  • Mileage data: Some fuel cards integrate with telematics systems for accurate mileage tracking, useful for reclaiming business mileage.
  • VAT-compliant invoices: Fuel card providers issue HMRC-compliant VAT invoices, eliminating the need to collect paper receipts.

This detailed tracking helps small businesses monitor fuel consumption, identify potential inefficiencies, and ensure accurate record-keeping for tax purposes. In 2023, HMRC reported that incorrect expense claims were a major reason for tax penalties for small businesses. Using a fuel card can dramatically reduce the risk of such issues.

Increased Security and Control

Fuel card providers offer tools to help businesses control fuel spending and reduce the risk of fraudulent activity:

  • Spending limits: You can set daily or weekly spending limits for each card.
  • Purchase restrictions: You can restrict what drivers can buy (e.g., fuel only).
  • Card locking and cancellation: If a card is lost or stolen, you can quickly lock or cancel it.
  • Purchase alerts: Get notified of unusual spending patterns or large transactions.

These features give businesses greater control over their fuel budget and safeguard them from unauthorized spending. In a recent survey by the Federation of Small Businesses, 40% of members reported concerns about employee spending, highlighting the importance of control mechanisms.

Convenience and Accessibility

Fuel cards streamline the payment process at fuel stations and are widely accepted at most major petrol station networks across the UK. This can save time for drivers and reduce the need for handling cash or reimbursements. Some cards also offer access to specific networks offering even better fuel prices or benefits. This can be particularly beneficial for businesses with drivers travelling extensively.

Types of Fuel Cards Available in the UK

When searching for the best fuel cards for small business, you will encounter a few different types:

Branded Fuel Cards

These cards are associated with a particular fuel brand, such as Shell, BP, or Esso. They typically offer:

  • Access to a specific fuel network: Drivers can only use the card at stations belonging to that brand.
  • Loyalty points or discounts: Often associated with the brand's loyalty scheme.
  • Predictable pricing: May offer fixed weekly pricing at participating stations.

Multi-Network Fuel Cards

These cards provide access to a wide range of petrol station networks, offering greater flexibility for drivers. Benefits include:

  • Extensive acceptance: Usable at a wide variety of fuel stations across the UK.
  • Reduced risk of running out of options: Less likely to encounter limited coverage in more remote areas.
  • Potentially lower costs: May allow access to different stations offering competitive fuel prices.

All-Star Cards

These cards allow access to the largest network of fuel stations nationwide and often include facilities such as car washes, parking, and breakdown services. Benefits include:

  • Convenience: Wide acceptance across the UK, covering most major petrol station brands, independent sites, and motorway service stations.
  • Access to Other Services: As well as fuel, these cards can usually be used for vehicle-related products or services at affiliated locations, like car washes and lubricants.
  • Detailed Reporting: These cards provide detailed information for each fuel transaction, simplifying the process of reporting expenses for businesses.

Hybrid Fuel Cards

Some newer cards offer a hybrid model that combines features of both branded and multi-network cards, providing businesses with both flexibility and potential loyalty benefits.

Choosing the right card type depends heavily on your business’s driving patterns and preferred fuel brands. Consider where your drivers frequently travel and whether the benefits of a specific brand's loyalty scheme outweigh the convenience of multi-network access.

Major Fuel Card Providers in the UK

Now, let’s look at some of the major fuel card providers available in the UK, exploring their key features, benefits, and potential drawbacks.

Shell Fuel Card

Shell offers a range of fuel cards designed for different business needs. Features often include:

  • Shell Card: Access to Shell stations across the UK.
  • Shell Fleet Navigator: Integrated fuel and telematics platform for advanced reporting and fleet management.
  • Shell Go+ Rewards: Loyalty program that offers discounts and other perks.

Example: A small delivery business that primarily travels within urban areas might benefit from a Shell card because of Shell's extensive network in cities and their potential cost-saving opportunities.

Potential Downside: Limited to Shell stations only, meaning drivers may have to detour if a Shell station is not immediately available.

BP Fuel Card

BP also provides a variety of fuel card options, typically with these features:

  • BP Fuelcard: Access to the BP network in the UK.
  • BP Plus: Advanced reporting capabilities and integrated telematics solutions.
  • Dedicated Account Management: Access to specialist support for your fuel account.

Example: A construction company that uses BP Ultimate fuel might choose the BP card for added performance benefits and better fuel economy.

Potential Downside: Like the Shell card, limited to BP stations, which may not be convenient in all locations.

Esso Fuel Card

Esso fuel cards provide access to the Esso and Synergy networks. Common features include:

  • Esso Fuel Card: Widely accepted at Esso stations and some partner sites.
  • Esso Synergy Rewards: Loyalty benefits and discounts.
  • Online Platform: Manage card usage, check reports, and monitor usage.

Example: A taxi company might benefit from an Esso card due to the ubiquity of Esso stations and the potential for rewards.

Potential Downside: The network is extensive but might not cover all areas as thoroughly as some multi-network options.

Allstar Fuel Card

Allstar is a leading multi-network fuel card provider, offering acceptance at the broadest range of petrol stations across the UK, including BP, Shell, Esso, and Texaco. Features include:

  • Extensive Network: Accepted at over 8,000 fuel sites nationwide.
  • Allstar Online Platform: Comprehensive fleet management tools, including card management, spend analysis, and reporting.
  • Additional Services: Access to partner facilities for vehicle maintenance, car washes, and more.

Example: A sales team who travels all over the UK will benefit from the nationwide access provided by Allstar cards.

Potential Downside: May not offer the same specific brand discounts as branded cards.

Fuelgenie Fuel Card

Fuelgenie cards offer access to Tesco, Morrisons, and Sainsbury’s filling stations. Benefits include:

  • Grocery Store Network: Access to major supermarket petrol stations.
  • Loyalty Programs: Can often link up with supermarket loyalty schemes.
  • Simplified Budgeting: Simple, cost-effective solutions for businesses.

Example: Businesses that are also doing grocery shopping for their staff might like Fuelgenie since they can combine both trips into one location.

Potential Downside: The network is limited to Tesco, Morrisons, and Sainsbury’s, which might not be ideal for all locations.

Credit Score Requirements and Eligibility Criteria

Applying for a fuel card is not always straightforward. Providers typically assess a business’s creditworthiness before approving an application.

Credit Score Importance

Your credit score plays a significant role in determining your eligibility for a fuel card. A good credit score signals to the provider that your business is reliable and capable of managing credit responsibly.

  • Higher approval chances: A higher credit score increases your likelihood of approval.
  • Better terms: A stronger credit history can result in more favorable terms, such as higher credit limits and lower fees.

According to Experian, the average credit score for UK businesses is around 700. A score below this may affect your chances of getting a fuel card or might result in less favorable terms.

Eligibility Criteria

In addition to a credit score, providers may consider the following:

  • Business age: Newer businesses might face more scrutiny than established companies.
  • Turnover: Providers often look at the business’s annual turnover to assess its capacity to manage debt.
  • Industry: Some providers might be more inclined to work with businesses in specific sectors.
  • Directors’ credit history: In many cases, the personal credit history of the company’s directors will be taken into account, particularly for newer businesses.

Actionable Advice: Before applying for a fuel card, check your business credit score and address any potential issues. If you're a new business, prepare comprehensive financial information to support your application.

Impact of Bad Credit

If your business has a low credit score, your options may be limited. Some providers might:

  • Decline your application: You may simply be denied a fuel card altogether.
  • Offer a lower credit limit: You may receive a fuel card with a lower spending limit.
  • Charge higher fees: Expect to pay higher card fees or interest rates if you're considered a higher risk.

Actionable Advice: If you have bad credit, work on improving it before applying for a fuel card. You might also consider using a prepaid fuel card that doesn’t rely on a credit check.

Comparing and Contrasting Fuel Card Providers

Choosing between different fuel card providers can be challenging. Here's a comparative analysis highlighting key differences:

  • Network Coverage:

    • Allstar and Fleetone offer the widest networks, ideal for businesses traveling extensively across the UK.
    • Branded cards (Shell, BP, Esso) are best for businesses that primarily use those specific networks.
    • Fuelgenie cards are suitable for businesses that frequent supermarkets with petrol stations.

  • Cost Savings:

    • Fixed weekly pricing is a benefit that reduces the impact of rising prices.
    • Branded cards often include loyalty benefits that can lead to discounts.
    • Multi-network cards might allow access to a wider range of stations, giving drivers more price-sensitive options.

  • Reporting and Control:

    • Shell Fleet Navigator and BP Plus offer sophisticated reporting capabilities.
    • Most card providers offer online platforms and mobile apps for account management.
    • Spending limits and purchase restrictions are common features.

  • Credit Score Requirements:

    • Each provider has its own credit criteria. Research and compare their requirements.
    • Some prepaid cards do not require a credit check.

Actionable Advice: Compare multiple fuel card options before committing. Look at your businesses’ travel habits, preferred brands, and reporting needs, then select a card accordingly.

Maximizing the Benefits of Your Fuel Card

Once you’ve chosen your fuel card, consider these tips to maximize its benefits:

  • Set realistic spending limits: Prevent overspending by implementing reasonable card limits.
  • Monitor reports regularly: Track fuel consumption and identify any areas of inefficiency.
  • Educate your drivers: Make sure your drivers are aware of your fuel policy and the best ways to use the fuel card.
  • Take advantage of loyalty programs: Collect points, discounts, and any other incentives on offer.
  • Review your card regularly: Check that the card continues to meet your business’s evolving needs.

In 2023, research by the Energy Saving Trust estimated that businesses could reduce their fuel costs by up to 15% by implementing a robust fuel management strategy, including the proper use of fuel cards.

Conclusion

Choosing the best fuel cards for small business in the UK requires careful consideration of various factors, including network coverage, cost savings, reporting capabilities, credit score requirements, and overall convenience. By understanding the different card types, major providers, and eligibility criteria, your small business can make an informed decision that will ultimately save time, money, and administrative headaches. Remember to regularly review your chosen card to ensure it continues to meet your business's evolving needs. With the right fuel card, you can take control of your fuel expenses and focus on growing your business. The best fuel card for your business will be unique to your needs, so do the research and find the best fit for you.