Most subcontractors in the oilfield industry have enjoyed and taken advantage of steady workflow over the past few years. However, it can be hard to have to wait 30-60 days for payment from your customers. This creates a unique challenge for subcontractors, who don’t have the time and resources to wait that long to get paid. That’s why Oilfield Factoring would like to provide you with the following information when it comes to important financing for your small business.
Time Equals Money
Small business subcontractors in the oilfield industry are usually focused on the growth of their company and don’t always have the necessary cash on hand to absorb slow-paying invoices. This puts subcontractors in a difficult position where they are forced to deal with their cash flow problems by delaying important expenses or demanding prompt payment from their customers. However, a better solution to this problem is to secure business financing as a means to bridge the cash-flow gap.
Over the years, oilfield factoring has gained popularity due to its ability to specifically fix cash flow problems created by slow-paying invoices. This type of business financing enables subcontractors and small business owners to get quick payment for their invoices without jumping through all the hoops required by traditional bank loans. This provides them with the necessary cash they need to make payroll, manage equipment, and pay for other important expenses. The best part? Oilfield factoring is specifically designed to make it faster and easier to obtain than other conventional financing options.
A Smart Financial Solution
Oilfield factoring works with a factoring company buying your invoices and giving you a percentage of the money upfront for them. This provides you with the funds you need to operate while the factoring company holds the invoice until your customer pays. Once the invoice has been paid in full during the course of its regular schedule, the transaction is settled. You are then paid the rest of the invoice minus a small factoring fee. This allows you to get the money you need without affecting the time frame a customer usually has.
Furthermore, qualifying for oilfield factoring is extremely easy. The biggest requirement is that you need to work with creditworthy customers. However, most large companies that you work with in the oilfield industry already have exceptional credit, so this isn’t a problem for most subcontractors. Aside from that, it’s important to make sure your company is free of any legal and tax problems. After that, you can be approved for oilfield factoring in as little as 48 hours.
Even more, oilfield factoring can help you save precious time and resources. Since subcontractors are often pulled in multiple directions at once, oilfield factoring frees you from the hassle of chasing down customer payments or scrambling to find money to work with. This allows you to do what you do best — providing quality services for your customers.
Oilfield Factoring
If you are looking for easier ways to obtain money to run and operate your small business without the headache of waiting to get paid, contact Oilfield Factoring at 1.866.834.7338. We have worked with hundreds of oilfield subcontractors and have a factoring program to fit your individual needs to help you succeed.
