Oilfield Construction Factoring Services
With the oil and gas industry growing rapidly, its growth has fueled many opportunities for the emergence of smaller oil field service companies. However, smaller oil field service companies often face some unique financial hardships. The most common problem is having enough cash flow throughout the project. The industry-standard payment terms require most oil and gas clients to pay their invoices in 30 to 60 days. This can create a financial problem for smaller oil field service companies that need to be paid sooner to pay their own expenses, such as payroll. Applying to a bank typically takes too long, and oil and gas construction factoring is a faster alternative. All around, Oil field construction factoring offers a strategic advantage for smaller oil field service companies.
Factoring invoices is beneficial for many reasons. Small oil field service companies can raise money without acquiring new debt. Debt is always risky. If it can’t be paid back, a company’s assets can be repossessed or the company can forced out of business. Oil field construction factoring doesn’t pose the problems associated with debt. The money paid for selling the company’s invoices is specifically secured by those invoices.
Small oil field service companies can also get money fast. When it comes to paying employees, buying equipment or paying for rental equipment, time is of the essence. Oilfield construction factoring allows small businesses to secure funds as soon as possible.
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Factoring Accounts Receivable Provides Quick and Easy Cash Flow
Factoring for Oil & Gas Construction is Simple
Once all of the details of oil and gas construction factoring have been arranged, the factoring process itself is pretty straightforward. Small oil field service companies can sell their invoices up to 95 percent of its value. The monies can be used for whatever the company needs. Once the invoices are paid, the factor collects on the invoices. The money is returned to the company they purchased them from less the factor’s fee. The factoring process is streamlined and simple.
Oilfield construction factoring provides fast cash. If you’re a small oil field service company, turn to Factor Finders when you’re strapped for cash. Factor Finders is experienced in the niche of small oil field companies.