Industries: Transportation and Trucking; Oil & Gas Sector
Location: McAllen, Texas
How Much? $1,000,000
Big sized budgets for a big state in a booming industry. With one of the largest and most recognized energy sectors in the entire world, what other state could possibly rival Texas when it comes to producing energy? From its large windmill farms to its vast oil well fields, Texas is widely recognized as the oil and gas beacon of the modern world.
More than black oil petroleum, Texas is experiencing a new energy boom from shale oil and gas made possible by horizontal drilling and hydraulic fracking. New, modern and far more complex than traditional drilling, fracking requires the use of water or other liquids to be pumped into the ground to loosen up the shale oil that sits trapped below rock. Such exploration efforts require significant oil and gas financing. Demand for oil and gas loans will likely remain high as long as demand for this exploration remains high.
Considerable Oil and Gas Funding Is Needed to Finance Fracking
As such, specialized water hauling trucks equipped to support this fracking process must be active and on-site at all times. These trucks must properly pump, recycle and dispose of the used water and they must be available and mobile. Companies responsible for such water hauling trucks must often man them more than 12 hours a day.
Rapid Growth Problems Solved with Oil and Gas Factoring
One such trucking company near McAllen, Texas was experiencing significant growth due to the shale oil boom. Yet despite this, it did not have enough transportation funding and was having trouble keeping up with demand. Worse yet it lacked sufficient fuel supply to keep its trucks up and running at the pace clients were expecting. It didn’t help that these oil companies themselves were taking more than 60-days on average to pay their bills.
Oil and Gas Factoring Covers Slow-Payment Issues
The company sought out a freight factoring company, Business Factors & Finance, to get the cash it needed quickly to support business demand. By securing a $1 million line of credit in the form of factoring accounts receivables, the company could meet its daily fuel needs keeping its trucks on the go. The freight factoring even enabled the company to add 30 water trucks to its fleet in order to keep pace with business demand.