Factoring for Oilfield Trucking Companies
Oil field trucks are in high demand right now, but funding for oil and gas transportation companies can be hard to obtain. With the industry moving so fast, it can be frustrating to try to grow a business, including hot shot trucking, while dealing with the the headache of monthly cash flow unpredictability.
One of the biggest problems in the oil field transportation industry is collecting on accounts receivable. Waiting 60 days or more for payment can be lost revenue, as companies don’t have that cash to grow their fleets or extend discounts to regular clients. But there is a solution: oilfield trucking factoring.
What Is Oilfield Trucking Factoring?
- A factoring company purchases your accounts receivable invoices at up to 90% of their value.
- You receive cash within 24 hours, rather than waiting for the clients to pay.
- The factoring company collects on the invoices.
- When customers pay their invoices, the balance is paid to you, less a small fee to the factoring company.
There are no limits to the amount of invoices you can submit and no minimum either. As you render services, you can keep submitting invoices to your factoring company. Or can hold on to some, if they are, say, quick and easy or automatic payers.
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What Are the Benefits of Oil Field Transportation Factoring?
You’ve already earned the money you are invoicing your clients for, so why not have it available to you immediately? There are no restrictions on how the cash from your oil field transportation factoring can be used. You can take that money and invest it in your fleet to generate more revenue or use it for other capital improvements.
Oilfield trucking factoring also saves you money on back office expenses. Having someone chase down accounts uses up time and resources that could be better spent on other aspects of your business.
How Can You Get Factoring for Your Oil Field Trucks Company?
The easiest way to find factoring funding for oil and gas transportation companies is to use a broker. At Factor Finders, we do the legwork for you and locate the best factoring company for your business. We work with all levels of the supply chain and can find funding for your company, no matter how large or how small.
It typically takes about three to five business days for your application to be approved. We understand the economy has been somewhat unsteady over the last few years, so your credit isn’t an issue as long as the customers you are invoicing are creditworthy. And if you’re a hot shot trucking company, don’t worry–we can find factoring for freelancers too.
The time to make money in the oil and gas industry is now. Don’t wait for your accounts receivable to grow your business. Contact Factor Finders for a free quote, and let us find you someone to take on your receivables, so you get your cash right away.