How to Overcome Debt for Your Oil & Gas Business Using Invoice Factoring
As a business owner in the oil and gas industry, you know and understand the struggles of cash flow. Because you have to wait until after your order or job is complete to receive payment, you often struggle making ends meet. Not only is your cash flow slowed, but you struggle to manage payroll, complete other jobs on time, have sufficient tools or inventory, and other daily tasks.
When your cash flow gets low, or starts to impact your businesses, you may think that the only option to keep your business afloat is to take out a business loan. Not only will this keep you from moving forward financially, but will also put your business into a deeper hole.
By taking out a bank loan, your business will have to jump through multiple hoops to apply and get the funding you need. This process can take anywhere from 30 a 90 dias, which can push your business even further into debt.
Agradecidamente, there’s a way to bypass this completely. By utilizing oil and gas invoice factoring, your business will be able to get proper funding, without incurring additional debt to your name.
Instant Cash Flow for Your Oil & Gas Business
When you use oil and gas invoice factoring, you’re simply getting instant access to the cash owed to your business—not borrowing funds. Con la factorización de facturas, una empresa de factoring will advance up to 96% of the amount on your outstanding invoices with low rates.
This allows you to get paid consistently and constantly and completely avoid the common 30 a 60 days between completing jobs and getting paid. You’ll be able to free up time, as the invoice factoring company then takes on the task of collecting the remaining balance from your clients.
Your cash flow can level out, and you’ll be able to tackle everyday expenses with ease.
Pay Off Past Debt Faster with Invoice Factoring
For any business to start up or take a stride into a new segment, you most likely have to turn to a bank for additional funding. This requires you to take on debt to your business that will be paid off through a series of monthly payments.
By utilizing invoice factoring, your business will be able to secure enough cash to start paying off debt faster than ever before. By getting instant payment for your outstanding invoices, you’ll have adequate funds not only to complete everyday tasks, but also have sufficient funds to make significant payments on your previous debt.
Grow a Strong Source of Working Capital
For oil and gas businesses, you need cash on hand to finance jobs, pay employees, and much more. Without this cash, your business can suffer tremendously. By using oil and gas invoice factoring, your business will be able to secure a strong source of working capital by getting a cash advance on its outstanding invoices.
This cash will allow your business to take control in the event of unexpected expenses, influx of business, large clients, and much more.