Oil And Natural Gas Factoring: Improving Your Cash Flow
Almost every aspect of our economy depends on the oil and gas industry, right down to the supply chains that move energy resources and finished products. Cash flow is the biggest obstacle to the oil and gas industry. Customers usually take 30-90 days to pay your invoices. Alternative financing, such as oil and natural gas factoring, enables production, transportation, piping, drilling and all other companies related to oil and gas to get the capital they need right away to handle all their business needs. Financing oil & gas projects are a higher risk undertaking that many banks are reluctant to participate in. The costs of equipment, payroll for workers, pipelines, transportation, drilling and more are costly. For these reasons, heavily backed and fast-paced oil and gas factoring may be the best choice for financing oil & gas projects.
How Factoring Works for Oil and Gas Service Companies
Blue Ridge Factors specializes in factoring the oil and natural gas industry. We quickly offer oilfield businesses cash for completed work. For example, a crude hauling company has completed a job for their customer and creates an invoice for the work. Blue Ridge Factors will purchase the invoice and pay the crude hauler up to 90% that same day. While waiting for payment, we will hold the remaining 10% (the reserve) in an escrow account until we receive payment from your customer (the debtor). Once Blue Ridge Factors receives the payment, you’ll receive the remaining funds less the factoring fees.
Blue Ridge Factors has extensive experience providing factoring services to oil and natural gas companies of various trades including: