Oilfield and Gas Services Financing helps companies with slow-pay accounts that take 30 to 60 days to pay invoices. Payment delays create problems for small and growing oilfield and gas services companies who can't afford to wait to be paid. Most small to medium sized businesses need access to money sooner to help pay for employees, equipment and daily expenditures.
Factor financing solves your cash flow problems by financing your slow-paying invoices for immediate cash. Your business gets access to immediate funds to operate at a higher and better level of efficiency while growing your business at the same time.
Oilfield and gas services invoices are typically financed in two installments. The first installment called the advance and the second called the rebate. The advance covers anywhere from 85-90% of the invoice amount and is deposited in your account as soon as the invoice is verified by the factor finance company.
The rebate makes up for the remaining percent, minus the factor finance companies fee and will be deposited to your account once your oil and gas customer pays the invoice in full.
One of the most important benefits of factoring your outstanding invoices is you don't end up waiting 30 to 60 days for your money. You get immediate funding with additional benefits that include;
The cost of factoring varies with rates as slow as 1.5% to 5% per month based on the average invoice amount you're sending plus the creditworthiness of your current customers.
Factoring your oilfield service receivables will help your company take advantage of new business opportunities. You can factor as little or as much as you need on a monthly/yearly basis. Factor financing is flexible and uses assets (invoices) to get your company the capital it needs to be successful in today's super competitive oil and gas industry.
How to get started factoring. First, it's recommended you get a few competitive offers from factor finance companies, eager to buy your invoices. It only takes a few minutes and within the hour you'll receive offers to buy your invoices. To begin, click the submit invoice button and follow the easy steps.
To make sure you qualify for financing your company should be free of Liens, Legal Problems, Tax Problems and or be willing to work out a plan with the factor to fix any existing problems. Having a few offers will only help you choose the best factor financing deal for your business today.
Factor bid lets you compare finance offers.. free!
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