At Oil Field Factoring, we enjoy working with clients in the oil and gas industry because they are reliable payers and have excellent commercial credit. However, like any business, they require suppliers to provide them with 30-60 invoice payment terms. This, in turn, can present a serious problem because they don’t have the ability to wait this long. Why? Because most oilfield companies have immediate and ongoing expenses such as payroll, supplies, and equipment. If they are unable to manage these expenses, a company can end up juggling payments in order to make ends meet.
Fixing Cash Flow Problems
While you can request your clients to provide you with faster payments by offering them incentives for quick payment, this strategy comes with unwanted limitations. For example, if you decide to offer discounts for quick payment, this can leave your cash flow at the mercy of those who owe you. Why? Whether you offer discounts and other incentives, a client can always slow down their payments at any given time in the future. A better solution for companies in the oil and gas industry is to secure business financing as a way to keep their head above water until payment is received. This is where oilfield factoring comes in.
Smart Invoicing Solutions
Oilfield factoring can speed up the slow invoice payment process from creditworthy customers. This will provide a company with the liquidity it needs to be able to meet its operational costs. Even more, oilfield factoring will provide your company with a predictable cash flow source which will enable you to focus on other important areas of your business rather than focusing solely on collecting customer payments. By partnering with a company like Oilfield Factoring, we can handle the hassle of credit checks, provide advances, and settle customer payment transactions. This also allows your customers to continue to pay their bills under their usual schedule.
Oilfield Industry Advantages
There are numerous advantages of using invoice factoring for oil and gas service companies. As the number one benefit, you will have availability to immediate cash. Instead of waiting 6-8 weeks or longer for customer payments, clients use invoice factoring to obtain money for payroll, company expenses, and growing their business.
Aside from cash flow, there are other benefits of invoice factoring. These include the ability to qualify for and set up a factoring account compared to other financing options. With oilfield factoring, it is the credit history and payment ability of your customers that determine eligibility not your own. This is an ideal option for business startups and those working to develop a positive credit history.
Even more, oilfield factoring can help you save precious time and resources. Since business owners are often pulled in multiple directions at once, oilfield factoring frees them 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 products and services to your customers.
Oilfield Factoring
If you are looking for easier ways to obtain money to run and operate your business without the headache of waiting to get paid, contact Oilfield Factoring at 1.866.834.7338. We have worked with hundreds of oil and gas clients and have an oilfield factoring program to fit your needs to help you succeed in any business environment.
