Since 2007 Oilfield Factoring has been offering oil and gas service companies with an alternative to conventional bank financing. Since many of these institutions require strict terms and excellent credit, we’ve stepped up, funding hundreds of millions of dollars in invoices for our oil and gas clients from water haulers to fac sand trucks to pipe welders to roustabouts. That’s why we’d like to provide you with the following information about factoring so you can get the cash you need to fulfill essential business obligations.
Factoring for the Oilfield Industry
Factoring is often referred to as invoice factoring or oilfield factoring. Oil and gas service companies commonly use factoring as an essential financing tool. When businesses provide important services, they generally offer payment terms to their customers, rather than require full payment at the time of sale. There are many good reasons for this business practice. These include increasing sales and developing long-term relationships. However, when these transactions take place, a service company is left with an account receivable that it holds onto until a customer pays, turning it into cash.
Factoring is very straightforward when it comes to getting the cash you need to run your business while waiting on clients to pay. As a service company, you will sell your accounts receivables to a finance company like Oilfield Factoring in return for an immediate cash advance between 80-90% of the invoice amount. When this happens, your client will be notified that the invoice has been sold, and is directed to make payment directly to the factoring company. At Oilfield Factoring, we will then keep track of the receivable, deduct a small factoring fee from the proceeds, and provide you with the remaining balance once payment has been made. This, in turn, provides you with consistent cash flow to run and manage your business.
How Factoring Helps Oilfield Service Companies
When you are unable to wait 30-90 days to get paid for your services, Oilfield Factoring is there to help. We will pay you up to 90% of your invoice amount immediately, providing you with the money you need to meet payroll, grow your business, and pay suppliers. We even help with credit checks, collections, and more.
Oilfield Factoring is committed to funding oil and gas service companies and would like to provide you with the following Ultimate Guide to Invoice Factoring.
The Benefits of Factoring
- We finance oilfield service companies and other oil industry vendors.
- Get fast approval & immediate funding in as little as 24-48 hours.
- Receive up to 90% of your invoice advanced.
- Resolve payroll and tax issues.
- Increase working capital and growth.
- Receive credit and collection management services.
Oilfield Service Companies That Qualify
- Water Haulers
- Rig Movers
- Mud Haulers
- Gravel Haulers
- Hot Shots
- HazMat Hauling
- Frac Sand Haulers
- Vacuum Trucks
- Equipment Haulers
- Flatbed Carriers
- Crude Haulers
- Pipe Haulers
- Roustabouts
- Welders
- Fence Installation
- Rig Cleaning
- Trenching
- Well Cleaning
- Location Cleaning
- Sandblasting
- Salt Removal
- And More…
Oilfield Factoring
At Oilfield Factoring, we help oil and gas service companies by providing them with proper factoring services to supplement their growth and ease any associated cash flow difficulties. For more information, contact us by filling out our online form or give us a call at 1.866.834.7338 today.
