No matter what industry you’re in, a company needs cash to operate. Cash is what powers business operations. Invoice factoring for oilfield contractors is a financial option used by many in the service industry to keep their company running at full potential. That’s why Oilfield Factoring would like to provide you with the following information on how invoice factoring can help contractors in the oilfield industry.
What is Invoice Factoring for Oilfield Contractors?
Invoice factoring is a type of non-traditional financing used by many oilfield companies to improve cash flow and get their accounts receivables faster. Service companies in the oilfield industry use invoice factoring when traditional bank loans are not an option.
Here’s how it works. Companies like yours provide their services like water hauling, rig moving, welding, etc., as usual. When their work is complete, an invoice is sent to a factoring company like Oilfield Factoring. You are then advanced a significant percentage of the invoice value within 24-48 hours.
Your invoice is then sent to your client to be processed and paid to the invoice factoring company in standard terms. Once payment has been received, the remaining invoice balance, minus a small fee is then paid to you.
How Invoice Factoring Benefits Oilfield Contractors
There are a wide variety of benefits of using invoice factoring for oilfield contractors. First, and foremost, it provides you with immediate cash instead of waiting 30-90 days for your client’s payments. This allows you to meet payroll, manage company expenses, and grow your business.
Aside from immediate financing, there are other benefits to invoice factoring. Oilfield contractors who don’t qualify for traditional bank loans can turn to invoice factoring because qualifying and setting up a factoring account is much easier and faster. Furthermore, invoice factoring isn’t based on your credit, rather it is based on your clients when it comes to determining criteria. This makes it the ideal option for new companies just starting out and those working on building a positive financial history.
Last, but not least, invoice factoring saves oilfield contractors precious time and resources better spent on other aspects of their business. Oilfield contractors are often pulled in many directions. By getting the money you need from factoring you won’t be wasting time trying to chase down payments or scrambling to get the money you need to keep your business operating. Invoice factoring enables oilfield contractors to focus on what they do best, providing quality work to their customers.
Get Started With Oilfield Factoring
Getting started with invoice factoring for oilfield contractors is simple. Oilfield Factoring has funded hundreds of millions of dollars in invoices for our oil and gas clients throughout the United States. Contact us by filling out our online form or give us a call at 1.866.834.7338 for a free, no-obligation factoring quote and proposal.
