Oil and Gas Financing Funding True Story | Business Factors
print this
Print This Page

True Story: Oil & Gas

Oil and Gas Financing Overflows to Secondary Businesses

Industry: Power Washing Company for Oil & Gas
Location: Oklahoma City, OK
How Much? $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.
Pressure Washing for Oil & Gas

Rapid Growth with Oil and Gas Funding Caused a Sputter

The company was growing and had recently been offered a new contract. This customer, however, was requiring net 30 terms. That is, it wanted a percentage discount for paying its bills within 30 days. 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 factoring accounts receivables. 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 hours. 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.

Get started now. Apply online
Or call us anytime 24/7 at 800-672-3844.

Se Habla Español

About the Author:

author image Since 1991 I specialize in Invoice Factoring, PO financing and ABL facilities. I currently work internationally with companies in the US and Canada via our internet marketing division. Specialties: Accounts Receivable Factoring and Payroll Funding for Manufacturing, Oil & Gas, Telecommunications, Wholesale Trade Distribution, Staffing and Transportation. I always enjoy helping companies rise to the next level of success.

Google Posts View More Posts By Robert Bernfeld