The oil and gas industry has proven year after year to be very lucrative. The profits can be outstanding for some companies, but in order to grow your business on a larger scale, they aren’t quite enough.
Getting financing for your oil or gas business can often be difficult though a bank because of the ever changing market. Some months, it may be simple to get funds for your business, while others are nearly impossible.
An alternative financing option called factoring can be a great solution for your oil and gas company. ¿Cuál es la factorización? Factoring is a type of financing solution where a factoring company will purchase your business’s outstanding facturas, receivables, to keep your cash flow moving. Why will this benefit your oil and gas business? Keep reading to find out the 5 reasons why your business needs factoring!
1. Bid On More Jobs
Factoring will be able to help you build a secure source of capital. When the factoring company purchases your outstanding invoices, you can get up to 96% of the invoice in your pocket in less than 24 horas. You will never have to wait for your business’s invoices to be processed and cleared into your pocket again.
When your business has built up a strong source of capital, you are able to take on more jobs or projects. You will be able to control your cash flow to grow your clientele and your business.
2. Purchase Equipment & Supplies
Your oil and gas business relies on its equipment to get the job done right. You’d be nothing without it. Cuando se utiliza la factorización, usted será capaz de cuidar o actualizar su equipo sin perjudicar a sus operaciones. Puede continuar sirviendo a sus clientes sin interrumpir su flujo de negocio.
Con los nuevos equipos, su empresa será capaz de correr más rápido, producir mejores resultados, y mejorar su reputación comercial global.
3. Tome ventaja de las ventas de temporada
Junto con su equipo, su negocio se basa en su inventario. A partir de tubos para ejercicios y más, su empresa las necesita para operar sobre una base diaria. Cuando se utiliza la factorización de petróleo y gas, usted será capaz de tomar ventaja de las ventas de temporada de su equipo. No sólo va a ser capaz de abastecerse para los próximos meses, sino también salvar su negocio cientos, si no miles de dólares.
Con una fuente segura de la capital, su negocio puede abastecerse de los elementos necesarios para estar al tanto de los trabajos, even in slow periods.
4. Get Paid Faster
In the oil and gas industry, you are constantly faced with pending payments. When your clients are slow to pay for their services, it can burn a huge hole in your pocket. Rather than burning through cash while waiting for clients to pay, you can secure your capital.
With oil and gas factoring, your business will be able to get paid before the job has been completed. This will allow you to combat slow paying clients with ease.
5. Keep Your Credit Safe
When you factor your oil and gas company’s invoices, the factoring company will take ownership and responsibility for negligent payments. This will keep your business’s credit safe from clients that skip or delay on payments. Although the factoring company is not a collections firm, they will often take on the collections process, keeping your business free from piling paperwork and damages to solid credit scores.
We hope that you consider these 5 benefits of oil and gas factoring to grow your business and to take control of your cash flow.