It is normal for long payment terms to occur in the Oil and Gas Industry, This at times can make it hard for Oilfield Service Providers to maintain a steady cash flow. Instead of worrying over whether or not one has enough operating cash to pay employees, cover research and development costs or purchase any new equipment, Factors solve this problem through providing Receivables Factoring to the Oil and Gas Industry Businesses.
Benefits of Factoring:
A business can offer more generous credit terms to customers
Purchase new equipment
Hire additional staff and cover payroll with ease
Receive a flexible short-term (or long-term) financing option
Receive low rates and competitive advances
Have no debt to repay
There is no limit to the amount businesses can fund
Businesses can send their invoices at any time for a Factor to purchase
Approval for factoring is based on the creditworthiness of the customers of a business, as they are the ones legally liable for the invoice payment.
When a customer or client is paying a business in 30, 60 or even 90 days and if so, they still have to pay their staff, purchase products and pay all their other monthly expenses, regardless if they are being paid in a timely manner then they most likely need factoring.
Such businesses have no reason to wait to get paid on their invoices. A business in this situation can sell their Account Receivables immediately today and get paid on them as soon as tomorrow.
Typical industries that need Oil Field Factoring Services
Water hauler Factoring | Gravel Haulers Factoring | Salt Removal Factoring |
Trench Factoring | Rig Cleaning Factoring | Hot Shots Factoring |
Food Truck Factoring | Pipe Hauler Factoring | Frac Hauler Factoring |
Sand Hauler Factoring | Winch Truck Factoring | Well Cleaning Factoring |
Vacuum Truck Factoring | Rig Mover Factoring | Dump Truck Factoring |
Sandblasting Factoring | Mud Hauler Factoring | Equipment Hauler Factoring |
Factoring for Oilfield Services Companies
Invoice Factoring is a financing solution used by Oilfield Services Companies and Oil Suppliers with a need for Immediate Cash Now!
Oil Industry Factoring provides a very consistent cash flow which enables Oilfield Services Companies a proven dependable way to meet their payroll, manage their expenses, and provide growth for their business.
Oilfield Services Contractors Rely On Factoring
These companies typically wait 30 days, 60 days, or even longer sometimes on payments from their customers. Oil Industry Factoring eliminates this waiting time for customer payments, Factoring can supply a very significant cash advance on open/outstanding invoices.
Factoring takes away the wondering of when funds will arrive, or about having the needed amount of cash on hand for any expenses, the Oil Business owners then only have to focus on the daily operational activities of their company.
Factoring is a real straightforward endeavor
Oilfield services companies and Oilfield Suppliers provide jobs, services, and products to their various customers, at the time when they invoice their customer, the Oil Company sends the invoice to their Factor.
The Factor then advances the client a percentage of the value of the Oil Company’s invoice.
This advance is usually 90 % and is sent on the same day the Factor receives the invoice.
This invoice is then forwarded to the client’s customer, who then pays it in their regular terms.
When the Factor receives payment on the invoice, all remaining balance gets remitted to the client, less the Factor’s fee.
If there are any gaps in revenue due to any unpaid invoices, companies in the Oil and Gas Industry should immediacy turn to the services of a reliable Factor that understands their special needs of business in the Oil Industry.
Oil Industry Factors provide comprehensive Accounts Receivables Factoring Services for Oil Industry Businesses and this improves the cash flow of these businesses.
Oilfield Factors Can Partner With:
Excavating and drilling companies
Water hauling and trucking firms
Crude hauling and transportation companies
Pipe construction and laying companies
Rig builder and relocation entities
Site preparation and planning corporations
Oilfield suppliers
Tank, truck and pipeline cleaners
Oilfield trucking
Staffing companies that supply workers for oil and gas sector, such as haulers, roughnecks, truck drivers, welders, riggers, roustabouts, and crane, drill and fracking operators
Scalable Funding For Oil Businesses
Timing always matters for any business operating within the Oil and Gas Sector within a national economy.
Such a company must always maintain enough cash flow to pay bills on time, invest in new ventures, and cover their day-to-day operating costs.
These companies need quick guaranteed access yo cash with a simple setup process to ensure they can obtain the cash they need quickly, this makes factoring their best option.
Whether you have a drilling exploration, oilfield hauling, pipeline construction, or any other business operation in the Oil Industry, a Factor can help.
An Oilfield Factoring Program can help Oil Businesses succeed
Factors have:
Highly competitive rates
No long-term contracts
No maintenance fees
Online reporting
Rebates paid weekly
Advance rates up to 90%
Daily reporting of receipts
Recourse and non-recourse programs
No exit fees
An Invoice Factor will charge a small percentage of a companies invoice in exchange for paying you immediately and taking on the responsibility for the collections process.
The cost of invoice factoring is in line with what one would pay to a credit card company for processing a credit card payment for one of your customers or clients.
Invoice factoring can also provide you with protection from bad debt
For More Information Call Now!
+1 (800) 413-5167 Extension 9
SECA Funding Company
You Can Do Business With Us Because We Earn Your Trust!
Get a Free Confidential Non-Obligation Factoring Proposal at SECA Funding Company
Click on Contact Us! Get a Factoring Proposal, Then On The Quote Request Form In The Section Financing Requested * Choose Factoring or Business Finance or Contact Us by Email: contact@secafunding.com
