Transportation Factoring Ramps Up Thanks to Oil & Gas Boom

To keep our cities, vehicles, and office buildings humming along at their current rapid pace, the demand for energy in all its myriad forms remains constant. From windmills to solar panels and from gas and oil drilling to the production of nuclear power, the search for new sources of consumable energy is never ending.

transportation factoring increases with oil and gas boomOne relatively new source of energy is shale oil and gas that can be obtained by a complicated process called hydraulic fracking and horizontal digging. It also requires tremendous equipment and personnel to complete the job not to mention large rigs and tools for transportation. As is often the case, one industry boom catches on to another, and soon you have rapid growth happening all around you and start running out of money to pay for it all.

Freight Bill Factoring Helps Pay for Massive Oil and Gas Projects

In Weld County, Colorado, for instance, they can’t hire truck drivers fast enough to drive and operate all the trucks needed for the oil and gas fracking going on in the region. Transportation funding from freight factoring companies is needed to finance these trucks as well as pay for the costs of payroll, fuel, equipment, pumps and materials needed for fracking.

A Freight Factoring Company Can Finance Oil & Gas Projects the Same Day

Freight bill factoring is helping these trucking companies keep up with demand. To give you an idea of how big the growth and need for trucking and transportation factoring is in the area, consider that more than 60 million barrels of oil were produced in 2013, a 28 percent increase from 2012 (a record). More than 50,000 wells in the state currently exist and 30 new wells come online every week. Huge rigs literally line up by the dozens in this rural community just trying to haul the needed water and resources to complete the drilling job.

Invoice factoring, which can provide cash the same day in most cases, is needed to cover the costs of these massive operations. With the continuous growth in the oil and gas, it appears that such financing for trucking and transportation isn’t going to go away any time soon.

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About the Author:

Robert Bernfeld started in the commercial finance industry in 1974. His early years included positions with Aetna Business Credit and Foothill Group. During the next thirty five years. Mr. Bernfeld established both equipment leasing and accounts receivable factoring companies. He partnered in founding Business Facilitators, Inc. in 1999. Mr Bernfeld graduated from the University of California, Riverside in 1974 and received his Juris Doctorate from Loyola University School of Law in 1977.

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