Are you tired of waiting for the account receivable to be paid back? Having to wait for funds can slow down your oil and gas business. It'll also halt your growth. Instead of waiting for the invoices to be paid, you can use oil and gas invoice factoring. You won't have to wait for your money to hit the account.

Numerous industries can benefit from invoice factoring, including businesses in pipeline construction, site preparation, exploration, surveying for oil and gas. Invoice factoring is an excellent solution if you have slow-paying customers. Here is how invoice factoring can be of help to your oil and gas business. 

What is Oil & Gas Invoice Factoring?

Let's begin by understanding invoice factoring. Invoice factoring is financing that enables business owners to use their invoices to get immediate cash. What happens in invoice factoring is that you'll sell your unpaid invoices at the factoring company and in return the factor provides funding against the accounts receivable.

Ways Invoice Factoring helps Oil and Gas Businesses

The growth in the oil and gas industry in the United States has led to both opportunities and challenges in the sector. Here are ways factoring can help companies in oil and gas to grow.

1. Fast funds

Instead of waiting for 30, 60, or 90 days for payment, you can receive payment for your services immediately thanks to invoice factoring. Once you have been approved, you'll have the cash in your bank account within 24 hours. With Crown Financial, you can get an advance of up to 25 million within 24 hours.

2. Easy setup

You'll need a lot of paperwork to get financial approval from a bank. Your business does not have that time. Most factoring companies allow you to set up your account and fund your receivables in a few days. Choosing a factoring company specializing in your industry, means you get a company that knows your business in and out. Therefore, the process becomes simpler. With Crown, there are no start-up costs, no contract, and no monthly minimum needed.

3. Debt-free

The good thing about factoring is that it doesn't leave you in debt. So, your business won't deal with debts when you use factoring to get funds. The factoring company buys your invoices and gives you the cash you need to run your business smoothly. With invoice factoring, even new oil and gas companies or those with low credit scores can qualify for the financing. You can get the capital you need to operate your company.

4. Back office services

Running an oil and gas company needs time and effort. You can reduce that time by using the back office service provided by invoice factoring companies. Factoring companies not only boost your cash flow but also give services such as checking payment progress, customer collections, managing records, and free credit analysis. A good factoring company offers services that streamline the collection process for your business but also build a strong relationship with your customers. 

5. Scalable funding

Timing matters a lot in the oil and gas sector. You must maintain enough cash flow to pay bills on time, invest in new equipment, meet payroll and cover day-to-day costs. The quick access and simple setup process ensure you have cash quickly, making factoring an excellent option. 

Crown Financial is an invoice factoring company that will provide you with the cash flow you need for your day-to-day operations. Whether you have a drilling exploration, oilfield hauling, pipeline construction, or any other business in the oil and gas industry, we can help. Get in touch with us today to learn more about our invoice factoring services.