Accounts Receivable Factoring for Oil & Gas Field Companies
One of the challenges of working with customers is that they can usually take 30-120 days to pay their invoices. Offering generous payment terms is a common industry practice oil field companies utilize to remain competitive. The problem is that not every business can afford to wait that long for payment. Many small oil & gas field businesses have obligations that need to be met regularly, such as supplier payments, payroll, taxes etc... Not paying any of these expenses on time could lead to serious problems. This situation can put your oil field business in an awkward position where your company is juggling customer payments in order to make ends meet.
For many companies a better solution is to accelerate their revenues using invoice factoring. Accounts receivable factoring provides an advance to your oil & gas field company using your slow paying invoices as collateral. Factoring provides the liquidity that your company needs to operate with confidence. More importantly, because we function as your credit department, it minimizes the payment concerns about offering terms to customers, enabling you to focus on sales.
To deploy an invoice factoring solution you will need to first fill out an application with American Capital Services. ACS will handle the credit review of your customers, provide funding advances, and will settle transactions once your customers pay. Note that your customers will pay on their usual schedules. Your oil & gas field company can use accounts receivable factoring to streamline its cash flow and improve operations.
As opposed to a traditional bank loan, invoice factoring is relatively easy to obtain. There are no onerous collateral requirements; however your customers must have good credit. This is very important because invoice factoring is based on your customers' ability to pay their invoices.
One of the biggest advantages to accounts receivable factoring with ACS is that it is flexible and can grow as your business grows. This enables your sales team to focus on growing your business rather than worrying about their payment cycle. Invoice factoring is a great solution for your oil field business with cash flow problems due to slow paying customers.
In today's economy, steady cash flow can make or break your company's growth and day-to-day operations.
With our invoice and accounts receivable factoring services, ACS can help turn your unpaid invoices or accounts receivable assets into cash - With no liability to your company, no change in ownership, and no future debt to repay.
"We added a new division. Instead of fronting the cash, or taking a bank loan, we decided to use factoring to grow sales. ACS showed us how to expand our business without taking on debt with a line of credit from a bank."