How Invoice Factoring Helps The Oil & Gas Industry

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.

Accounts Receivable Financing: 8 Facts Everyone Should Know!

These unpaid invoices are the worst for a business, if only there was a way to turn this negative into a positive source of assistance. Does this situation sound familiar? Are you overburdened with unpaid invoices? Wait! What if there is a solution? Don't stress out just yet. 

Did you know that small businesses in the US are deemed to have about $825 billion of unpaid invoices, according to Entrepreneur.com? If you're the owner of a business, you are likely aware of what it's like to be owed revenue. Enter Accounts Receivable Financing — also referred to as "factoring".  

About Accounts Receivable Financing

Accounts receivable financing assists small and large companies with resources by allowing businesses to gain access to additional capital from their outstanding invoices that don’t get paid for 30, 60, or 90 days. Basically, this allows businesses to secure funds by selling their receivables or purchase orders to continue business as usual.

Crown Financial, LLC understands that you may be befuddled right now trying to figure out what to do and where to start. Our team has put together a list of facts and benefits of account receivable financing below. 

1. Eliminate the Wait

One great thing about accounts receivable financing is that you can eliminate the 30, 60, or 90-day wait to get your money from the invoices. This, in turn, also helps your cash flow. You simply sell your outstanding invoices to an account receivable financing company like Crown Financial, who will advance you cash for your invoices. 

Speedier Cash Flow: Enjoy the advantage of being able to promptly turn your credit sales into direct cash flow for your company. Speedy funding may also offer you an advantage with your credit rating by allowing you to pay your bills on time.

2. Accessible Capital

Accounts receivable financing enables your business to maintain, if not exceed, cash flow demands by assisting in the growth of your business through sales. As your invoices grow, your factoring amount grows as well.

3. Factoring Is Swift and Seamless

Unlike traditional bank loans where you have to undergo a long credit check process, with accounts receivable financing your verification and approval process can happen within 24 hours. 

Initial verification and approval doesn't entail the long, detailed credit checks required by a typical bank loan, therefore original funding can be as quick as 24 hours. Afterwards, continued funding normally gets funded the same day after submitting your invoice. And with ar factoring your client’s credit gets checked, not yours.

4. Factoring Helps to Enhance Your Business Credit

When you get paid quicker via your invoices, you enhance the flow of cash, which allows you to meet your credit commitments on time. This also helps to boost your credit rating because it shows that you pay bills on time and that you have sufficient cash flow. 

5. Comprehensive Management Reports

Receive detailed reports that display the status of your receivables, which allows you to better handle your business and cash flow, as well as reducing the time spent prepping reports so that you can focus on your company. 

6. Your Equity Matters — So Retain It

Don't worry about giving up portions of your company's equity for funding, as with some types of funding services. Fortunately, you retain control and full ownership of your business when you have account receivable financing.

7. You Don't Have Any Debt to Repay

Say goodbye to stress and sleepless nights, say hello to cash flow and new growth. Since factoring is not considered a loan, you have no debt to repay. Factoring invoices does not incur debt like other types of loans that add to your liabilities.

8. Invoicing Assistance

When working with an accounts receivable finance company, you can get assistance with processing your company's invoices and billing — and don't forget about getting paid quicker.

Concentrate On Your Company: When you have access to working capital, you can enjoy peace of mind. This leaves you with the time needed to focus on marketing and the ongoing productivity of your company.  

Apply Now for Accounts Receivable Factoring

If you're burdened with unpaid invoices, and you're ready to turn them into cash, or if you just have questions about how accounts receivable financing works, call us today at 281.646.2905 or apply now. The staff at Crown Financial, LLC look forward to working with you so that you can work on boosting your company's brand. In the meantime, take a look at our blog over here.

How To Choose Customers Wisely To Scale and Grow

Let’s face it, when we think about scaling and taking our businesses to the next level, clients are usually not the first thing that comes to mind. We think about how to improve our brand visibility, what ad campaigns to run, and new ways of attracting more prospects. However, customers are at the center of the growth of any successful business.

Finding out who your clients are and what they want is the first step to scale and grow. Loyal customers will ensure that you grow since they will keep bringing you business and will refer their friends to you. 
At Crown Financial, LLC, we work together with you to develop a strategy that will help you and your business grow. We have put together a list of top tips on how to choose your customers wisely and take your business to the next level.

Develop a Good Business Relationship With Your Clients

One of the most important things you need to work on is a good business relationship with your clients. Most people do not think about how they relate with their clients, and it messes them up. Before you get started on other areas of your growth strategy, ensure that your clients feel valued and understand what you are all about. It is this information that they will use when they market your products or services to other people.

Settle for Clients That Have a Great Reach and Online Presence

The clients you attract will either bring in more business or make you stagnate. It is vital that you take a look into your client's background. Find out what type of industry they work in and their influence in such areas. Such research is vital because it is what will determine your marketing strategy. It will help you target the right crowd with your products and get good feedback from them.

Go For a Client Who Listens to Your Suggestions

The phrase the customer is always right does not always apply in all situations. There are times when the customer can be wrong. A good customer is willing to admit that they do not know everything and can sit down with you and listen to your ideas. Such clients end up being long-term clients. 
They work with you, not because they did not have other options but because they believe in your vision and theirs being related. They also make your interaction with them easier, which goes a long way to ensure there are no hitches in your working relationship. No one wants to keep going back and forth with a client.

Create a Product That Provides Value

One of the things many businesses miss out on is creating something that is of value. Take your time and delve into extensive research on the product or service you plan to sell. Do not skip or rush over this process since that is what will determine whether you succeed or not. Ensure you have quality products or services that your target clients cannot get anywhere else, as this will keep them coming back. Also, ensure that you minimize the cost of production. In doing so, you can price your products right and still make a profit in the competitive market.

We Can Help

One of the struggles any business faces is stagnation. You are not alone if you feel like you have been working on your business and have seen no growth. At Crown Financial, LLC, we work to ensure that you experience growth on a huge scale. Contact us today on 281.646.2905 or reach out to us on our site here to see how we can work together. You can read our blog to get more ideas on how you can choose a client that makes your business grow. 

5 Alternatives to PPP Loans for Fast Funding

The Paycheck Protection Program (PPP) is a business loan program intended to help businesses continue paying their employees amid the economic impact resulting from the COVID-19 pandemic. It was established through the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in 2020 to provide cash flow assistance for eight weeks via loans and backed by the Small Business Administration (SBA) and fully guaranteed by the federal government.

Although PPP is a great program for businesses across the United States, some might miss out on this loan for different reasons, including ineligibility. If you don't meet PPP loan requirements or, for some reason, you are denied, you need to look for other ways to secure funding.

Below are the five alternatives to PPP loans for fast funding.

1. Term Loans  

Term loans are alternatives that provide clarity on the exact amount small business owners owe and how the repayment plan will work. A business can properly plan how to use the funds since there is a thorough discussion when signing the agreement. Term loans typically have fixed and lower interest rates since business owners prefer to repay them over a long period.

Most businesses prefer them for their unique flexibility, not seen in other types of funding. But besides the interest you pay on the debt, there could also be other fees, including an origination fee that adds to the cost.

2. Line of Credit  

Unlike traditional business loans, a line of credit gives more flexibility to small business owners. It provides them with funding up to a particular limit. There is an agreement that owners spend the money provided when they require them and only pay interest on the used amount. Unfortunately, the lender has a right to call any line of credit payable without warning, meaning you will have to settle the full balance.  

3. SBA Loans  

Small businesses can apply for SBA loan products such as Microloans and Express loans. Microloans have a limit of $50,000, but business owners might have to receive training to help uplift their business with the funds they receive.

For Express loans, a business gets credit decisions in 2-3 days, and the loan amount can go up to $350,000. Typically, they are overwritten and given by SBA's permitted lenders.

SBA loans are attractive due to their attractive rates similar to those of non-guaranteed loans. However, the spending restrictions for SBA loans inconvenience most small businesses.

4. Equipment Financing  

Equipment financing closely resembles the inventory financing lending program in structure and concept. However, you won't use your inventory as collateral but the equipment you purchase. This structure makes equipment financing easy to qualify. Unfortunately, it is restrictive in that it funds equipment; thus, you can't use the loan for other purposes.

5. Invoice Factoring

A slow collection process can greatly slow down a business despite the accounts receivable ledgers indicating sales. Slow pay customers might end up forcing you to lay off workers, turn down new projects, and delay tax payments and bills. Luckily, you can factor in your invoices, and you will receive the funds you need quickly. Factor your invoices and get the money you need within 1 business day.

Crown can help you with invoice factoring. For example, if your accounts receivables are $100,000, Crown Financial gives you 80% - 90% of the invoice amount as advance. After that, Crown deducts a factoring fee based on the amount of days it takes your customer to clear the invoice. That is, if your customers take a month (30 days) to pay, the factoring fee will be 2.8% of the outstanding invoice that is $2,800. When the invoice is fully settled, Crown gives you the reserve amount and deducts the factoring fee.

Invoice factoring is the best alternative to PPP loans since it gives you a healthy cash flow when you use it month to month. Besides, it won't cost you any monthly minimums, signup fees, or hidden charges when you work with Crown. Try out Crown's Invoice Factoring Calculator to check your rate in real-time. 

Invoice Software To Better Manage Your Business Cashflow

Manual invoicing usually has errors, and a simple error can lead to huge losses. But when a business uses the best invoicing software, it can develop and customize invoices, manage and process payments electronically and give reports that help in hassle-free tracking of finances and invoices.

Invoice software is a tool that can automate business invoicing operations. The tool helps lower manual entries, enhance accounting accuracy and save your business a great deal of money and time.

This article highlights ten invoice software to improve your business cash flow management.

1. QuickBooks  

QuickBooks incorporates both business and banking solutions. The invoicing software auto-fills invoices with customer details and schedules invoices in advance.  It also allows businesses to create, send and monitor invoices from various digital devices. The major drawback of QuickBooks is its limited flexibility, including not allowing users to enter the negative invoice.

2. Wave Accounting  

Wave Accounting is cloud-based software that eases business accounting processes. It is accessible from anywhere, and you can integrate it with other tools and software. Wave Accounting focuses on small businesses; thus, users won't come across cluttered and complex software that is difficult to understand.

3. Hubspot

Hubspot continues to outshine most CRM tools available in the market. It is a great all-in-one business solution with hubs for customer service, sales, and marketing. Besides, it has tons of business tools, including invoice template generator, blog idea generator, email signature generator, free business templates, and more. Although HubSpot is not a true invoice software, it allows businesses to send quotes, and customers can pay the quote if you link it to Stripe Payments.

4. Accelo  

Accelo is a flexible and robust software for all project management needs. The software allows businesses to manage projects against budgets, schedules, and available resources conveniently. Its arrays of features include resource management, client portal, task management, status tracking, time and expense tracking, and percent-complete tracking. The only downside with Accelo is cumbersome processes which make it feel like tasks are taking longer.

5. Freshbooks  

Freshbooks helps businesses build and send invoices online and get faster payments. This free invoicing software lets you know when customers view your invoices, monitor overdue invoices, charge late payment fees on invoices, auto-schedule payments, and more. However, the software needs improvement to carry an overdue balance to a new invoice automatically.

6. Bill.com  

Bill.com automates and digitizes accounts payable and receivable processes. This accounting solution can capture invoices, manage cash inflows and outflows, approve payments, and monitor back-office financial operations. However, the accounting software needs integration with purchase orders to easily match with an invoice without needing a PO clearing account in the software.

7. HoneyBook  

HoneyBook is a reputable client monitoring solution that helps businesses manage payment processing and contracting and help users communicate and collaborate. It helps you overcome challenges, including managing multiple vendors, writing paper checks, signing and collecting countless contracts, and other business issues. Unfortunately, businesses that wish to export client data may not like HoneyBook.

8. Square Up  

Square Up is a payment solution that aims towards simplifying and redefining the invoicing procedure for growing businesses that wish to spend more time innovating and less time developing, sending, and tracking invoices. It is highly responsive, thus allow quick invoicing and payments. The downside in Square Up is its minimal and inaccurate reporting.

9. BitPay

BitPay is a great deal for your businesses, especially if you use cryptocurrency payments and deposits. You can also integrate it with existing systems via cryptography secure API. Unfortunately, it has limited customer support and might be difficult to reach out for assistance in case of payments issues.

10. CoinPayments

CoinPayments is another great platform for businesses that accept crypto payments. It accepts Bitcoin and many other digital currencies. Businesses benefit from the Point of Sale function that allows customers to make in-person payments and the shopping cart plugin. However, this platform has a private key managed by a third party (wallet platform), although you encrypt it with your password.

Wrapping Up 

Cash flow is great for any business, but outstanding invoices can suppress it. Luckily, companies can consider invoice factoring, whereby they sell some or all the outstanding invoices to a third party to improve revenue stability.

At Crown Financial, we help businesses turn their unpaid invoices into cash. Call us today at 281.646.2905 or visit our site to see how we can work together to boost your brand. You can also check our blog for more information.