Invoice Factoring for Oil and Gas Companies
Are you turning down lucrative projects because you can’t afford to wait for payment? Or are you looking to take advantage of the oil and gas boom? No matter if your company is struggling or starting to soar, Factor Finders’ oil and gas factoring programs will keep your company golden on your quest for black gold!
The Oil and Gas Factoring Process
Once you are approved to begin factoring for oil and gas, the process for submitting invoices is simple:
- Send the factoring company a copy of your invoices for completed work.
- The factor will verify your invoices and advance up to 90 percent of the invoice via wire or ACH (fees apply) within 24 hours.
- Continue working as usual – taking on new jobs or submitting new invoices – while the factor works to collect from your customers.
- When payment is received, the factor will send you a rebate of the remaining invoice amount minus a small fee (recourse option only).
Advantages of Factoring Oil and Gas Receivables
Why choose invoice factoring over other lending options?
No loan = no debt
Factoring for oil and gas is not a loan; instead, it is a means for you to convert your existing invoices into immediate cash. By selling your own assets to generate working capital, you can avoid adding debt to your balance sheet.
Unlike a business loan, you can receive cash within 24 hours of factoring your oil and gas invoices. You can also factor as many invoices you need at the frequency that works best for maintaining your account.
Poor credit is okay
Even if your business credit has taken a hit, you can still be approved for oil and gas factoring at a reasonable rate. Factoring companies for oil and gas evaluate your customers’ credit rating to make a funding decision.
Unlimited cash flow potential
Traditional lending features static credit lines that take a great deal of work to increase – not so with oil and gas factoring! With factoring, your access to cash increases in proportion to your sales. The more projects you take on, the more cash will be available to fund them.
Non-recourse options available
Some oil and gas factoring companies offer factoring without recourse, in which they will take on the credit risk for your invoices. Though it comes at a slightly higher fee, you will know exactly how much each invoice will yield you and you will be able to provide your services without worry of non-payment.
Eliminate even more overhead by allowing your factoring company to take on some essential back office functions. At no additional cost to you, your factor will assist with invoice drafting and management; credit and background checks for your potential customers; and provide 24/7 online reporting so you always know where your account stands.
Want Extra Cash Flow for Your Business?
Invoice factoring is the perfect solution. Call us today @ 855-322-8671
Who Can Use Invoice Factoring?
Factoring for oil and gas is an alternative to traditional lending that is available to companies providing upstream, midstream, and downstream services. Whether you are starting your first project or your hundredth, and regardless of your financial history, you can qualify for a competitive oil and gas factoring program to keep your cash flow solid.
The types of companies that can work with factoring companies for oil and gas include, but are not limited to:
- Field Safety Reps
- Water Haulers
- Crane Operators
- Roughneck Crews
- Welding & Fabrication
- Hot-Shot Delivery
- Torque/Testing Equipment
- Heavy Haulers
- Frac Tank Builders
Factor Finders’ nationwide network of oil and gas factoring partners offer industry-low rates for service. Getting started is easy – just complete a short application and send the following:
- Articles of Incorporation
- Copies of invoices you wish to factor
- Current customer list and aging report