Oilfield Factoring
Over the past five years, the domestic oil industry has steadily increased since the 2014-2015 oil slump. In fact, there are hundreds of new oil and gas rigs operating in Texas and North Dakota. What does this mean? It means that the future looks a lot brighter for oil and gas service companies that rely on increased demand for their services. That’s why Oilfield Factoring would like to provide you with the following information on how invoice factoring can help your service company meet industry demands to take on new opportunities for growth.
Ramping Up Demand
If your oilfield service company survived the 2014-2015 oil slump it’s all due to your hard work and resourcefulness. Currently, however, you’re probably experiencing an increased demand for your services now more than ever. As rigs open up nationwide, there are numerous opportunities for water haulers, rig movers, welders, rig cleaners, sandblasters, and more that serve the oilfield industry.
Increased demand means more opportunities for growth. However, it also comes with its share of headaches. First and foremost, it’s important to have strong cash flow to support an increase in employees, trucks, and equipment. However, cash may be hard to come by when you’re waiting 60-90 days to get paid by your customers. It’s even harder to apply for and secure a traditional bank loan or line of credit when you need it the most.
Invoice Factoring Can Help
Invoice factoring may be the easiest way for your service company to quickly build the working capital you need to serve your customers while supporting the growth of your business. Since it can take 60-90 days to get paid, this payment cycle can deplete the cash flow of your company. This, in turn, limits your ability to hire new workers and purchase the equipment you need to meet increased demand. The immediate cash generated from invoice factoring can support industry fluctuations and ensure you don’t have to turn down new growth opportunities due to a shortage of working capital.
Furthermore, the funding you receive through invoice factoring will grow as your receivables grow. This quick cash flow provided by invoice factoring matches the needs of your oilfield service company whether you are in a down market or experiencing a significant demand for your services.
Partnering With Oilfield Factoring
When you work with Oilfield Factoring, you gain a business partner that’s funded hundreds of millions of dollars in invoices for our oil and gas clients. Here’s how Oilfield Factoring differs from other Texas and North Dakota factoring providers that serve your industry.
- It takes less than a week to set up an invoice factoring account.
- Once your account is set up, you will receive funding in a matter of days.
- Funds received through factoring are based on your customer’s credit, not your own.
- We process payment on your invoices at no extra charge.
- We provide collections, credit analysis, and other back-office support, allowing you to focus on the growth of your oilfield business.
Contact Us to Learn More
Things change quickly out in the field. That’s why it’s important to be prepared for industry fluctuations and take advantage of new opportunities to grow your business. To learn more about how we can help you, contact Oilfield Factoring today by filling out our online form or call us at 1.866.834.7338.