Why Your Company Needs Oil And Gas Invoice Factoring
Are you new to invoice factoring? If you happened to just hear about factoring and are looking around to see what it is all about, then you have come to the right place. We are here to help you understand what factoring is and how it is one of the most beneficial ways to finance your business. It’s not only fast and easy, but secure as well. So what exactly is factoring? Let’s take a look at a brief description.
What Is Invoice Factoring All About?
Invoice factoring is when you sell your current invoices that you are waiting on to a factoring company. The factoring company purchases them up to 96 percent. This is a quick, reliable solution to getting the funding you need. Because you get paid within 24 hours of approval, it is a much quicker option for funding than waiting for a loan or waiting to get your invoices paid. If you are looking for a way that doesn’t put you in debt, invoice factoring is the key. Once your customers pay back the invoice, the factoring company will then pay you the rest of the sum, minus a small factoring fee.
Benefits of Invoice Factoring
Today, we are going to take a look below to see the top 5 reasons you should consider getting oil and gas factoring for your business today.
1. Improve your cash flow with invoice factoring
One of the most common problems that businesses face today is the lack of a consistent cash flow. If you bill your clients you may not see that money paid back for months. Yet, you most likely need this money to run your operations smoothly, thus creating the dilemma. Rather than waiting for a loan that will only put your business into debt, the best solution for quick cash that won’t put you in debt is factoring. Because it’s flexible, you can choose which invoices to factor, when you want to factor them.
2. Expand your business with oil and gas factoring
Are you looking for ways to expand, but aren’t sure how you can with your current cash flow? If you’re ready to grow whether that means hiring more employees, adding a new location, etc., then making sure you have the funds when you need them is crucial. With invoice factoring, you can make sure you have that cash when you need it. You won’t have to wait for months to get your invoices paid, thus slowing down and even chronically delaying the expansion process.
3. Purchase new equipment, trucks or construction materials
If you don’t have a consistent cash flow this could create a problem for when you need to purchase new equipment or make repairs. Construction materials, trucks, etc., can be costly. Rather than taking out a loan and putting your company in debt, you can take advantage of invoice factoring.
4. Meet payroll on time with invoice factoring
In the oil and gas industry there are numerous employees from operators, engineers, haulers, riggers and more that your business relies on. With invoice factoring, you can be sure to have the cash flow you need to pay your employees on time.