Oil and gas factoring provides fast financing for oil and gas companies by turning receivables into cash. This type of financing helps oilfield service providers take on new growth opportunities by eliminating the wait for payment. If a lack of working capital is preventing you from going after a lucrative project, oilfield factoring companies can get your business the funds you need. Factoring is a business-friendly alternative to traditional lending for the oilfield industry.
Invoice Factoring for Oilfield Service Providers
Whether you operate upstream, midstream or downstream, you can count on oilfield factoring to keep your cash flowing. Long payment terms are common in the oil and gas industry, making it hard for oilfield service providers to keep a steady cash flow. Rather than stressing over whether or not you have enough funds to pay employees, cover research and development costs or purchase equipment, use accounts receivable factoring to maintain a stable source of capital.
Why Use Factoring?
- You can offer more generous credit terms to customers
- Purchase new equipment
- Hire additional staff and cover payroll with ease
- A flexible short-term (or long-term if you prefer) financing option
- Low rates and competitive advances
- No debt to repay
With factoring, there is no limit to the amount you can fund, and you can send invoices at any time for purchase.
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How Does Factoring Work for the Oil and Gas Industry?
Factoring isn’t a loan. It’s a way for those who work in the oilfield industry to get paid faster by selling receivables for a cash advance. Once you’ve been approved, just submit your oil and gas receivables and receive up to 95 percent of their value within 24 hours. The remaining amount is held in a reserve account until your customers pay the invoice.
There is no maximum amount for funding. As long as you have unpaid receivables, funds are available.
How to Qualify for Oil & Gas Factoring
Qualifying for oilfield receivables factoring is easy, even if you’re a relatively new business or have less than great credit. Approval is based on the creditworthiness of your customers, since they’re the ones liable for invoice payment. This means if you have less than perfect credit, you can still get approved for invoice factoring, unlike a traditional financing options.
Here’s How it Works:
Once approved, you can submit invoices right away and a receive cash advance within 24 hours. Send as many invoices as you’d like for work that’s already been completed. The factoring company will verify the invoices and advance you up to 95%.
The remaining amount is held in a reserve account until the invoice is paid. The oilfield factoring company collects payment from your customers. Once invoices are paid, the factor will give you the remaining amount that’s held in reserve, minus a small fee for their services.
Financing Solutions for Any Oilfield Business
- Hot Shot Haulers
- Water Haulers
- Frac Sand Haulers
- Mud Haulers
- Gravel Haulers
- Dump Trucks
- Equipment Haulers
- Flat Bed Haulers
- Vacuum Trucks
- Gravel Pit Suppliers
- Frac Sand Suppliers
- Shale Gas Industry
- Site Preparation
- Excavation Services
- Pipeline Construction
- Road Construction
- Disposal Services
- Flowback Testing
- Acidizing & Cementing
- Wireline Services
- Fracking Services
- Roustabout Services
- Well Servicing
- Tank & Pipeline Cleaning
- Environmental Cleanup
- Land Surveyors
- Oil Rig Cleaners
- Inspection Services
- Staffing & Employment Services
- Manufacturers of Oil Extraction Equipment
- Oilfield Equipment Rental
It's Simple to Get The Financing You Need to Grow Your Business
Oil and Gas Factoring – The Smooth Solution
Don’t wait 60 days or more to be paid for your oilfield operations when immediate cash is available. Oil and gas factoring is easy to set up and cuts through the red tape of traditional loans. You can get started within minutes – all it takes to apply is your Articles of Incorporation, a current customer list, and copies of the invoices you wish to factor. Oilfield factoring companies can approve you for funding and process your initial transaction in as little as 3 business days! Get paid within 24 hours and cover your expenses with no more worries.
Factoring for Oil Field Service Providers Gives You More
- A dedicated representative to process your account and answer any questions you may have
- Back-office support including credit analysis, A/R management, and billing and collections
- Recourse and non-recourse options available
- The ability to take on larger contracts knowing you have the steady capital
- Easy approval with no long term contract