Oilfield service companies play a critical role in the oil and gas industry by providing a range of services, such as drilling, well completion, welding, wastewater hauling and maintenance. However, these companies often face challenges related to slow-paying customers, which can hamper their ability to grow their business. To address this issue, many oilfield service companies are turning to invoice factoring as a solution.
Invoice factoring is a financing technique in which a company sells its accounts receivable (invoices) to a factoring company at a discount. This provides the company with immediate cash, which it can use to pay its suppliers, invest in growth, make payroll, and improve its cash flow. The factoring company then collects payment from the customer directly.
Oilfield service companies are finding invoice factoring to be a highly effective tool to manage cash flow and grow their business. With invoice factoring, they can receive immediate payment for their services, which allows them to meet their financial obligations and invest in their business without waiting for their customers to pay. This helps them to avoid the cash flow gaps that can occur when invoices are paid late, which can be particularly damaging for small businesses.
Invoice factoring provides oilfield service companies with greater financial flexibility. Factoring companies are typically more willing to work with companies that have less-than-perfect credit, which can be a significant advantage for oilfield service companies that are just starting out or have a less-established credit history. Invoice factoring can also help these companies to build credit by improving their payment history and providing them with a stable source of cash flow.
In addition to receiving a steady cash flow supply, oil field service companies also benefit from invoice factoring by utilizing their extensive credit investigation services. The oil industry is infamous for slow paying, and even not paying their vendors. By relying on the expertise from a Top Rated Factoring Company oil field service companies will have up to date credit information on their customers. This gives our clients the information they need when they are negotiating a contract with a new customer.
Invoice factoring is a valuable tool for oilfield service companies that are looking to manage their cash flow and grow their business. With invoice factoring, these companies can get the cash they need to invest in growth and take advantage of new opportunities, without having to wait for their customers to pay.
If you are an oilfield service company looking to take advantage of invoice factoring, consider applying for invoice factoring with American Receivable. With over 44 years of experience in the industry, American Receivable offers fast and reliable invoice factoring services that can help your business to grow and thrive. Contact them today to learn more about how they can help your business succeed.
Jack Stieber [email protected] 972-404-4726
Brad Gurney [email protected] 800-297-6652
Sarah Fisher [email protected] 800-297-6652
Julie Adams [email protected] 972-404-4726
Dakota Stieber [email protected] 512-339-5112
