Begin Factoring Your Oil and Gas Receivables Today
A steady cash flow is essential to the operation of oil and gas companies. When customers take 60 days or more to make a payment it can become challenging to run your business. Fortunately, accounts receivable financing is available to help oilfield businesses secure the funding necessary to run day to day operations. Financing receivables makes it possible for oilfield service providers to get paid sooner. By sooner, we mean you’ll receive funds within 24 hours.
Factoring accounts receivables reduces debt by giving you the working capital to pay down existing debt and can grow your business by allowing you to buy extra supplies and hire new employees to take on new projects.
Nearly Any Oilfield Service Provider Can Qualify
We help a variety of oil and gas businesses including transportation, hauling, fracking operations and suppliers, crane operators, cleanup services, pipeline and road construction, excavation, surveyors and a whole lot more.
Qualifying for oil and gas factoring is easy. If you are a startup or have bad credit, don’t worry. Approval decisions are based on your customer’s credit, since they are the ones responsible for paying the invoice. The documents needed to apply include:
- Articles of Incorporation
- Current customer list
- Invoice aging
- Copies of the oil and gas receivables you wish to factor.
Once you have submitted these documents it can take as little as 3 business days for initial approval. You receive your advance within 24 hours and cover your expenses with no worries. There are no restrictions on what you can do with your funds.
What is Accounts Receivable Financing? How Does it Work for Oil and Gas Companies?
Factoring is the process of selling your oil and gas accounts receivable to a factoring company for immediate cash in return. A factor buys your outstanding invoices and advances your company up to 90% of the amount up front (the remainder is held in reserve). You typically receive the advance within 24 hours. The factoring company collects the payment from your client. Once the invoice is paid, the reserve amount is released to you, minus a small fee.
ARC works with factoring professionals who specialize in the oil and gas industry. You will receive a dedicated representative who will work with you to process your account, help with your application and answer any questions you may have along the way. You will work with the factor to create a plan that fits your businesses needs and goals.
The Benefits of Oil and Gas Financing
- Factoring is not a loan and does not create debt.
- Factoring decreases debt which enables you to grow your business.
- Factors provide collections support for businesses so you can focus on more important things, like attracting new clients and expanding your business.
- Factoring oil and gas receivables will allow you to offer flexible credit terms to your customers because you will have a steadier cash flow to cover the extra costs.
- You are able to factor as many or as few invoice as you prefer.
- There are no long-term contracts involved and the paperwork is kept to a minimum.