Oil and gas industry factoring?

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Paolo Hand asked a question: Oil and gas industry factoring?
Asked By: Paolo Hand
Date created: Thu, Apr 15, 2021 6:54 PM
Date updated: Sun, Jul 17, 2022 11:34 PM

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Video answer: Factoring invoices

Factoring invoices

Top best answers to the question «Oil and gas industry factoring»

  • Most companies in the oil and gas industry will qualify for factoring as long as they have creditworthy clients. Oil and gas factoring works in four steps: The oil and gas company provides a factor with a copy of the invoice that was sent to the client. The factor verifies the invoice and runs a credit check on the client.

Video answer: Oil and gas industry purchase order factoring & receivable…

Oil and gas industry purchase order factoring & receivable…

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The Benefits of Oil and Gas Factoring With market prices that fluctuate rapidly and lengthy payment terms standard in the industry, many oil and gas companies struggle to maintain the cash flow they need to cover operational costs. This is where oil and gas factoring can help: Fast Access to Funds

The oil and gas industry was experiencing a downturn before the COVID-19 pandemic hit. Crude oil dropped below $50 per barrel, the lowest seen in years, in early 2020 and then, as the pandemic pressed on, the contract futures ...

Oil and Gas Factoring Services Naturally, as an up and coming oil and gas business, you would like to expand into new markets and take on large projects. Slow-paying clients are normal for the oilfield industry, which can pose challenges when you’re trying to come up with financing to start new contracts.

Oil and gas factoring may be your best choice for funding because it is ideal for: Peak-and-valley type businesses that lack a steady history of growth Businesses whose clients tend to pay at or after a 30-day payment period New businesses that haven’t been established for at least five years

Oil and Gas Industry Factoring The oil and gas industry provides products and services used by every business sector. For oil field distributors, contractors, wellhead fabricators, delivery businesses, suppliers, and more, the one thing that keeps the oil and gas industry moving is cash flow.

The cost for the factoring is included in the discount and additional costs. Funds obtained from a factoring company can be used in the following areas of the oil and gas industry: Settling of salaries of the employees such as engineers, chemists, and general builders. Ensuring that regulatory matters such as permits and licenses are dealt with.

Invoice factoring is a unique financing tool for oil and gas companies. Factoring is the process of selling your receivables to a factoring company (also known as a “factor”) in exchange for cash up front. The factor typically advances between 80-90% of the total invoice value.

Oil and gas factoring provides fast financing for oil and gas companies by turning receivables into cash. This type of financing helps oilfield service providers take on new growth opportunities by eliminating the wait for payment.

Oil and Gas Industry Factoring Financial solutions are our specialty at Goodman Capital Finance, and we’re proud to offer our services to a variety of industries across the board. What many people don’t realize is that the oil and gas industry also deals with invoice holdups and the need for immediate cash.

Oil and gas factoring companies are ramping up shale hydraulic fracking production in Texas, North Dakota and New Mexico. This shale oil boom has really hit towns such as Midland, TX and Williston, ND where rents and cost of living expenses are sky rocketing.

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Video answer: What is accounts receivable factoring?

What is accounts receivable factoring?