Oil and Gas Financing Overflows to Secondary Businesses
Industria: Power Washing Company for Oil & Gas
Ubicación: Ciudad de Oklahoma, OK
Cuánto cuesta? $75K Factoring Line
With the oil and gas industry booming in the region, businesses that serve to support that growing sector have also been picking up in recent years. Power Washing is one such specialty business that has begun to pick up corresponding with the increase of oil and gas. Drilling, digging and laying pipe for such work is a dirty job and someone has to clean up the mess when it is done. Out in Oklahoma City, OK, one such company was making a nice profit doing just that.
Rapid Growth with Oil and Gas Funding Caused a Sputter
The company was growing and had recently been offered a new contract. This customer, sin embargo, was requiring net 30 terms. Es decir, it wanted a percentage discount for paying its bills within 30 dias. The Power Wash company did not routinely offer this agreement but thought its terms sounded fair and reasonable as it guaranteed them payment, something they saw as an advantage in this still slow-moving economy. Not wanting to turn away a new customer, the company agreed.
The Power Wash company was able to fulfill the terms of the new contract, yet it found itself struggling with its cash flow and having too little capital as a result. A business manager reviewed the books and realized the company would have a hard time meeting its upcoming payroll obligations in its current state. Not wanting to do that to its staff, the company reached out to an invoice factoring company for factoring receivables.
Oil and Gas Factoring Just in Time
After reviewing their situation, the factoring company was able to offer them a $75K line of credit for factorización de cuentas por cobrar. Knowing the Power Wash company was in a potential bind and facing a payroll crisis, the factoring company was able to provide its factoring services that same day providing $20K in cash in less than 24 horas. As such the company was able to fulfill its payroll obligations with help from the factoring company. Today as the company continues to grow, it looks to use regular factoring services as a preventative measure to head off payroll problems and cash flow crunches before they begin.