For several reasons, you should not use your personal credit cards for purchases on the job, even if you’re guaranteed a quick reimbursement.
While company purchases might be covered, using your personal card can affect your personal credit. The trucking industry has addressed the issue by implementing fleet cards, and other industries would do well to follow suit. The consequences of credit card use during the holiday season can be costly, and using the same cards for job requirements can result in insurmountable debt. Small to medium-sized fleets may sometimes use personal business cards and find they are able to manage expenses, but there are more reasons to break that pattern than not to, especially when fuel card discounts provided by fleet cards can strengthen your business and provide control.
Don’t Let Consumer Habits Take Over Trucking
Corporations tend to increase spending during the winter months, but when it comes to holiday spending, consumer retail reigns. Unfortunately, between gifts, parties, and winter weather emergencies, many Americans will add an average of $986 to their existing credit debt that will hang on for months after the holiday glee of giving has passed. MagnifyMoney conducted a national survey, and found that:
- American consumers spent without a plan. 7% of people set no holiday budget at all. A further 15.1% of people set a budget but ignored it and spent more than planned. That means 65.8% of people had no control over their holiday spending.
- After spending money on holiday gifts, a majority of Americans are “broke.” 3% of people surveyed have less than $1,000 combined in their checking and savings account.
- Credit cards will be used to fund a big portion of holiday purchases. 3% of the people surveyed will not be able to pay off their credit card in full this month. High-interest-rate credit cards were used to fund holiday debt.
- Despite the debt, Americans have “no regret.” Despite borrowing money at high interest rates to fund holiday purchases, 85.7% of Americans have no regrets about their holiday spending.
We tend to turn to our credit cards more during the holiday season than at any other time of year, but for the trucking industry, credit card debt does not have to accumulate as it will for hundreds of thousands of consumers across the country. The trucking industry’s fuel and fleet cards are helping to strengthen and grow the industry, and though they are just one tool, they have become a staple for fleet managers by providing transparency and control as well as fuel card discounts that add up. For those reasons, fleet managers are turning to fleet factoring resources for the fuel card discounts – and for the cash flow without the debt that comes along with traditional credit cards or loan financing.
Factoring Means Debt-Free Opportunity
Invoice factoring is simply a sale of invoices without incurring debt. Choose to factor all or only some of your invoices, and companies like Fleet One Factoring will provide the immediate cash you need to pay expenses including payroll, fuel, insurance, maintenance, and any other fleet expenses. The biggest overall benefit of working with someone like Fleet One is having a partner with a secure financial foundation and complete knowledge of the trucking industry. Unlike a bank or third-party lender that provides resources for every industry, fleet factoring understands the business enough to help with business strategy and customizable programs to fit the exact needs of the fleet.
With the goal of efficiencies and growth, fleet factoring can provide the specific resources a fleet needs exactly when they need it, and that includes fleet cards with fuel discounts instead of credit cards with accumulating debt.
Fuel Savings With Fleet Card Discounts Keep Your Fleet Moving
With fuel discount cards like the Fleet One EDGE card, you have access to the largest fuel discount network available, with average savings of 15 cents per gallon. Those fuel card discounts are important because, in a world of tight budgets and schedules, every dollar counts toward giving your fleet an edge. Designed for fleets up to 50 trucks, this fuel discount fleet card can give your fleet the ability to go that extra mile at any time of year but particularly during the busiest time of year – the holidays.
The Fleet One EDGE Advantage
- Largest nationwide fuel discount network, with more than 2,200 sites – average savings of 15 cents per gallon
- No fuel transaction fees in the Fleet One EDGE network
- Acceptance at more than 12,000 truck stops nationwide
- Nationwide discounts on major tire brands — save an average of $100 per tire
- Thousands of additional savings on wireless, equipment, maintenance, parts, breakdowns, hotels, and more
- Free fuel card funding with Fleet One Factoring
So while consumers are driving up credit card debt during the holiday season, the trucking industry can take comfort in knowing that flexible fleet factoring solutions can provide resources for growth during this season and beyond while avoiding insurmountable debt.