One way to slow down your oil and gas business is by waiting for your account receivable to pay you back. Waiting for funds isn’t only frustrating, but it can also affect the growth of your business. Fortunately, you don’t have to wait to receive your money in your account with invoice factoring.
Many industries are already reaping the benefits of invoice factoring—from pipeline construction to site preparation, down to surveying and exploration. With invoice factoring, you can finally address slow-paying customers, making it an ideal solution for your business’ accounting needs.
Of course, you should work with a credible factoring company to ensure that all necessary finances and factors are in check. With their help, you’ll get to implement actionable solutions that will encourage growth in your business, and you no longer have to wait for slow-paying clients.
What Exactly is Oil and Gas Invoice Factoring?
Invoice factoring is financing that allows businesses to use their invoices to get cash instantly. By doing this, you get to sell your unpaid invoices at a factoring company, and they’ll provide you with funding against the account receivables.
How Does Invoice Factoring Help the Oil and Gas Industry?
- Some clients will take 30, 60, even 90 days before they can secure payment—this is a pretty long time to remain stagnant, and it could negatively impact your business’s growth. However, when you implement invoice factoring, you can receive payment immediately once a factoring company has approved it. Usually, you’ll get the money within 24 hours, allowing you to advance up to 25 million dollars.
- Getting loans from banks can be disheartening to many businesses, especially when a plethora of paperwork is involved. But thankfully, factoring companies have an accessible account set up, allowing you to receive funds within a few days. Of course, you’ll want to work with a factoring company that specializes in your industry for a simpler process.
- Another great thing about invoice factoring is that you won’t be dealing with debt. This is because the factoring company will buy your invoices and give you the funds you need to run your business. This way, if your business has a low credit score, you can still qualify for financing, allowing you to receive the capital you need to operate.
- A lot goes into running an oil and gas company, but fortunately, you can reduce time and labor, thanks to invoice factoring companies’ back-office services. This way, you won’t only boost your cash flow, but you’ll also gather necessary data, such as payment progress, customer collections, credit analysis, and more.
The Bottom Line: Can Invoice Factoring Really Help My Oil and Gas Business?
When it comes to running an oil and gas company, timing and cash flow matter. With that being said, it makes sense to invest in effective services like invoice factoring to help create effective solutions that can encourage steady cash flow and integrate helpful processes and equipment to streamline business operations. Staying on top of your invoicing processes helps your business scale and adapt to the ever-competitive business landscape.
How Can We Help You?
Porter Capital offers capital solutions to businesses in different industries. As a direct lender, we can provide over 6 billion dollars of funding, allowing businesses to continue with day-to-day operations and encourage growth in their industry sector.
Are you interested in learning more about our invoice factoring services? Reach out to us today!