For many decades, Business Factors has been converting unpaid invoices into immediate cash for small and medium-sized telecom industries. Telecom invoice factoring provides a convenient solution to enhance cash flow, enabling you to meet ongoing expenses without delays caused by outstanding invoices. With this financial flexibility, you can effortlessly cover payroll, pursue new opportunities, invest in state-of-the-art technology, and fuel business growth.

With the increasing demand for high-speed data connections and long-distance telecommunications, the importance of fiber optic cables cannot be overstated. Data providers must meet consumer demands while ensuring cost efficiency in the installation of these cables. Luckily, trenchless technology, specifically horizontal directional drilling, offers a solution that eliminates the need for trenches and presents a more time-efficient, environmentally friendly, safe, and economical approach to laying fiber optic lines. By investing in horizontal directional drilling, your business can stay ahead of the curve, reduce costs, and foster growth. Business Factors is here to provide your company with upfront cash to facilitate this innovative drilling method, enabling you to embrace cutting-edge technology while maximizing savings.

Wireless and telecommunications companies that can reap the rewards of invoice factoring encompass:

• Cable TV Installers and Contractors
• Satellite Dish Installers
• Underground Utilities
• Cable Testing and Diagnostics
• Telecommunication Installers and Providers
• Cell Tower Setup, Repair, and Maintenance
• Horizontal Directional Drilling
• Fiber Optics

Cash Flow Issues for Directional Drilling/Boring Company

Providing extended payment terms exposes small horizontal directional drilling companies to the risk of cash flow gaps. Many projects in the fiber and utility, petróleo y gas, and construction sectors operate on payment terms of 30 a 60 dias. Waiting nearly two months for payment poses challenges in meeting weekly expenses and covering payroll. Startups and small companies often lack sufficient cash reserves and require additional financing to sustain their operations.

Causes of liquidity issues for directional drilling and directional boring companies:

• Extended payment terms of 30 to 60-days
• New sales require additional human, physical, and financial resources
• Changes in staffing demand from every changing project timeline
• Lack of financial management and planning, such as 13-week cash flow forecasting
• Poor internal AR collection processes
• Customers paying invoices late

Financing for Directional Boring/Drilling Company

The horizontal directional drilling (disco duro) industria, also known as directional drilling or boring, has a market value of $8 billion and is expected to grow annually at a rate of 6.7%. This presents abundant opportunities for exploration, discovery, and redevelopment projects within the industry. sin embargo, one challenge faced by businesses operating in directional drilling is the slow payment terms of commercial contracts, which often require 30 or 60-day payment periods. Consequently, horizontal directional drilling companies require quick and reliable cash flow financing solutions to overcome their lack of working capital.

Factoring eliminates the burden of constrained cash reserves and the need to tap into personal savings for business funding. Companies operating in the oil and gas as well as telecom industries face similar challenges when extending NET30 or NET60 credit terms to customers. Por lo tanto, we recognize the importance for startups and rapidly growing businesses to generate sales.

Factoring offers a reliable source of funding for directional boring/drilling companies, ensuring a steady cash flow for your business. Unlike the arduous process of obtaining a bank loan, invoice factoring swiftly converts your outstanding accounts receivable (CON) invoices into instant cash flow. With this approach, you can streamline your financial operations and maintain a healthy business.

Horizontal directional drilling companies facing challenges in meeting bi-weekly payroll, weekly payables, and overhead expenses can alleviate these burdens by selling their unpaid accounts receivable invoices to Business Factors. En cambio, they gain immediate access to working capital on the same day.

Get in touch with our team specializing in directional boring and directional drilling financing. Reach out today to discuss any cash flow challenges you may be facing. We’ll work together to formulate a plan that strengthens your cash flow.

What kinds of invoices for directional boring and drilling are accepted?

In the horizontal directional boring and drilling industry, invoices are calculated based on the footage and daywork rates. As contractors, our clients in the directional boring and drilling sector are responsible for providing all necessary equipment, dotación de personal, and resources to accurately determine the footage and daywork rates.

Four typical types of invoiced items for directional drilling and boring clients:

• Daywork rates: Contractors are remunerated for their daily work based on the number of crew members, pay rate, and hours worked.
• Footage rates: Contractors are compensated for drilling or boring work based on the footage drilled.
• Moving rates: Clients are billed for the mobilization and demobilization of resources, including equipment and crew, during directional drilling or boring operations.
• Work Stoppage/Standby rates: Implement preset conditions for paying crew rates in situations where work has ceased. This can occur either prior to the rig’s arrival at the drill site or subsequent to it.

Certain companies in the directional drilling industry operate on a progress payment basis, which differs from a single monthly invoice encompassing all services provided. Calculating progress payments requires a combination of technical, operational, and accounting expertise, posing a challenge. Al factores de negocio, we have prior experience working with clients in the horizontal directional drilling sector who utilize progress billing or pre-billing. Our team specializing in factoring financing for directional drilling and boring is well-equipped to assist you in managing your cash flow constraints.