Oil and Gas Factoring

Get On-Time Cash with Oil and Gas Factoring

oil and gas factoring services

Oil and gas companies, as well as those that serve and supply them, routinely have to deal with the financial ups and downs of the industry. It isn’t uncommon to have several months when business is booming followed by a few more months when businesses is altogether flat. Planning ahead and having some cash in reserves can help businesses get through these down periods.

 

 

Oil and Gas Funding Doesn’t Have to be Hard to Find

Yet even with the best-laid plans, oil and gas companies and their suppliers sometimes need additional capital. That’s where Business Factors’ oil and gas project financing comes in. If your business is in the oil and gas sector, you will more than likely have a hard time securing a traditional loan from a bank. Banks prefer lending to businesses with steady periods of growth and predictable projections. In the oil and gas sector, even profitable and otherwise thriving businesses can routinely show up and down periods as this is just the nature of the business.

Banks don’t want to see these peaks and troughs as they prefer steady upward growth trajectories with minimal periods of decline. Moreover, many banks have clearly stated policies that that they won’t provide business loans to certain high risk industries, and there’s a good chance that oil and gas sector is on that list. This is particularly true for businesses that have yet to establish themselves or those that lack sufficient collateral.

 

Factoring Frees up Cash For Investments or Expenses

Business Factors, an oil and gas financing company, routinely works with seasonal or high risk businesses. It provides oil and gas funding to those directly in and around the industry, including suppliers, contractors, and trucking and transportation companies. Its oil and gas loans can help cover the costs of:

  • Transporting various equipment, such as pipes, tools, haul water, and more.
  • Payroll for engineers, chemists, builders, constructors, oil rig installers, movers, and general laborers such as roustabouts.
  • Clean up, set up, maintenance, and repair of the drilling or fracking site or equipment.
  • Permits, licenses and other regulatory matters.
  • Supplies, such as sand, gravel, rock, water and other materials that are needed for drilling or fracking expeditions.

 

Oil and Gas Factoring Let’s You Bid on Future Projects Today

Invoice factoring for the oil and gas industry provides funding to companies based on the validity of current invoices that are issued to creditworthy clients. So as long as you have a current client with a solid credit score and a history of paying bills when they are due, you likely qualify for oil and gas funding. Moreover, Business Factors can provide oil and gas project financing on a project by project basis so you can get the financing you need to complete the job without having to commit to a long-term contract.

Unlike standard oil and gas loans, factoring is not dependent on your business’s credit score, business history, number of years established, the state of the local economy, or risk given to a particular industry. As long as you have a credit-worthy client, you are set. Oil and gas project financing enables your business to get paid for invoices in a matter of days so you can move forward with your next project.

 

Flexible Funding in a Changing Industry 

With the power of cash-on-demand oil and gas financing, your company can bid on jobs with confidence knowing it will have access to the capital it needs to complete the job. With oil and gas project financing, you can have added flexibility of getting the capital you need. This way you can get the amount of capital you need based on the requirements of the job rather than a flat disbursement amount.

The energy sector is in a constant state of flux as it is highly dependent on global economic and political trends. The industry has historically been a risky one, and that doesn’t look to change anytime in the foreseeable future. Today, that risk is exacerbated in many ways by low oil and gas prices that are a result of a number of industry and geopolitical factors.

As a result of low market prices, many oil and gas companies are struggling to come up with sufficient capital to cover their operating costs. Business Factors can provide oil and gas financing to these and other companies to bolster their operations and ultimately their business growth.

 

Oil and Gas Funding from Business Factors offers

  • Fast financing in 3-5 business days or less
  • Low, competitively priced fees
  • Easy application process with no up-front costs
  • Transparent handling of your receivables so you’ll know precisely when payment occurs.

So contact Business Factors today to learn more about financing oil and gas projects.

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