Every day, you think about ways to increase your business’s profits and what you must do in order to achieve this. This may be laid out in your business plan, but there could be hidden expenses that are bringing your profits down.
Cut Office Expenses in Your Oil & Gas Business Using Invoice Factoring
You may not know it, but office expenses can make major cuts into your business’s profits. To remain competitive and keep your business moving forward, you must keep your business’ profits growing. Here are 3 ways to cut office expenses in your oil and gas business to keep your profits moving in the right direction.
1. Use Oil and Gas Invoice Factoring to Cut Administrative Costs
By using oil and gas factoring, your business will no longer have to manage costly and time consuming administrative tasks. With oil and gas factoring, your business sells its outstanding invoices to get an advance of up to 96% in just 24 hours or less. Because the factoring company purchases your invoices, they will take on the process of collecting payments, saving your business time and money.
Oil and gas factoring will not only give you access to the funds already owed to your business, but also give you access to more time, an invaluable benefit to any busy business. Rather than having an entire team dedicated to your administrative tasks, the factoring company will cut down your time for in-office tasks so you can make your administrative learner to save much needed funds.
2. Purchasing Equipment vs. Leasing Equipment
Is leasing equipment really right for your business? This is a question that we see most often with oil and gas and manufacturing businesses. In your oil and gas business, you rely on your equipment for exploration and production costs. Your business is constantly faced with expenses that are piling up. Rather than always having a payment for your equipment, consider purchasing it. When you purchase your equipment, once you complete the final payment, it’s yours—you won’t have to continue to make payments.
This can save your business a lot of money in the long run. Owning equipment can help your business cut monthly costs that could be used for acquisition and building a stronger source of working capital.
3. Take Advantage of Inventory Discounts With Oil and Gas Invoice Factoring
Your oil and gas business relies on its inventory every day to complete jobs. Many invoice based businesses, like yours, often struggle to complete jobs on time because of low inventory and little to no capital. With oil and gas factoring, you’ll have instant access to the funds owed to your business to help build a strong source of working capital.
With a strong source of working capital, your business will actually be able to save more money on inventory. Many suppliers will offer discounts for oil and gas businesses that purchase more inventory at a time. With more cash in your pocket, you’ll be able to stock up on daily inventory, while saving money for your business.