- Water Haulers
- Rig Movers
- Mud Haulers
- Gravel Haulers
- Hot Shots
- Haz Mat Hauling
- Frac Sand Haulers
- Vacuum Trucks
How Oil and Gas Factoring Works
Essentially, a company will sell its outstanding invoices to a factoring company in exchange for an upfront cash advance. Then, the oilfield factoring company will wait for the payments from the debtors. Once the payment is received, they remit the remaining balance minus their service fee. Without a factoring agreement, oil and gas companies are at the mercy of customers who may take 60 or even 90 days to pay their invoices. Oilfield factoring grants them immediate access to the money they’re owed for a small fee.
Submit Application
To process your application, we will need your company information, your customers’ information, the credit limits wanted, and the MSAs if applicable. Once approved, we will determine favorable rates and terms that work for both of us. The average setup takes less than two business days!
Industry Knowledge
Once we have all documents signed, we will reach out to your customers and determine their invoicing and approval process. We have hundreds of customers in our system already, and likely currently work with your customers.
Receive Payment
Submit your unpaid invoices to us and receive payment. We advance 90% of the invoice value to you immediately upon billing and approval. Once your customer pays, you receive the remaining balance minus a small factoring fee. You will have access to your client portal 24/7 and you can submit your invoices to factor anywhere, anytime.
Industry-Wide Oil and Gas Factoring Services
Our funding expertise stretches across the entire O&G industry.
- Equipment Haulers
- Flatbed Carriers
- Crude Haulers
- Pipe Haulers
- Roustabouts
- Welders
- Fence Installation
- Rig Cleaning
- Trenching
- Well Cleaning
- Location Cleaning
- Sandblasting
- Salt Removal
- And More…
Comprehensive Back-Office Support
Oilfield Factoring provides our clients with more than just fast payments. To complement our oil and gas factoring service, we also include complete back office services to help your business run smoothly.
Credit Checks
Never work with someone who doesn’t pay. We offer free credit screenings of potential customers so you know who you are working for.
Invoice Reviews
Common invoicing mistakes can keep your customers from paying on time. We will review your invoices to make sure they are accurate and error-free.
Payment Processing
We offer different payment options, at no extra charge, saving you both time and money.
Collections
We value the relationships you have built and have tailored our collections to be as professional and light-touch as possible.
Are You Running a Crew of Subcontractors?
Weekly pay will allow you to attract and retain the best subs. If you have independent trucks or leasers that you would prefer set up to factor their own invoices, send them our way! If your company can be extended the credit necessary, we can set up your subs to factor, with you as the debtor. We handle all payments to your contractors, keep track of invoices, and help your operations run smoothly. Best of all, there is no cost to you; your subcontractors pay the factoring fees! To learn more about this program, please call today: 866-834-7338
Oilfield Factoring Services FAQs: What You Need to Know Before You Get Paid
Oilfield invoice factoring gives your business access to working capital by unlocking funds tied up in accounts receivable. This is especially useful during seasonal slowdowns, unexpected delays, or rapid growth, when waiting on customers can hold you back. Unlike loans, factoring allows you to convert completed work into immediate cash, helping your business stay agile and financially healthy in the oil and gas industry.
By improving cash flow stability, oilfield factoring empowers companies to take on more contracts without hesitation. With steady access to funding, you can invest in equipment, hire skilled workers, and meet rising demand without relying on traditional loans. This flexibility gives oilfield service businesses the confidence to scale operations and pursue their financial goals without cash bottlenecks.
Factoring costs vary based on invoice volume, client creditworthiness, and funding speed. Typically, a small percentage of the invoice amount is retained as the factoring fee. Importantly, factoring is not a loan, so you don’t incur interest or require repayment schedules. Many invoice factoring companies also include support like customer verifications or collections, which would otherwise be an added cost to your business.
Subcontractors working under larger oilfield service companies often face delayed payments. With the right factoring program, they can receive payment for their work within 24 hours, allowing them to pay their own crews and manage fuel or maintenance costs without delay. This is especially useful in high-turnover roles like trucking, fencing, or sand hauling, where cash flow gaps can cause major disruptions.
The oil and gas sector presents unique challenges, from fluctuating payment terms to complex vendor networks. A factoring company that specializes in oilfield services understands these nuances and can provide more tailored solutions. They know how to work with pipeline services, drilling contractors, and support services, ensuring smoother client onboarding, faster approvals, and a more aligned funding solution for your industry.
Things change quickly out in the field.
Partner with Oilfield Factoring and keep up.
Call today or fill out our simple form.