How Factoring Can Help Your Oil & Gas CompanyPosted by Factor Funding Co. on August 10, 2012
If your oil and gas company is dealing with sudden cash problems, your first thought may be to apply for traditional bank financing. However, if you have little credit or if your company has only been in business a few years you may find it hard to qualify for a typical bank loan. Where can you find access to the cash you need to meet your immediate expenses? Oil and gas factoring may be the perfect solution for your problem. This arrangement offers several benefits for companies of all sizes.
1. The procedure is easy to follow.
For one thing, getting approved for oil and gas factoring is very simple particularly when compared to the lengthy process of obtaining a bank loan. All you'll have to do is request factoring from a qualified factoring company, submit a copy of your current invoices then wait for the company to approve your application.
2. You can get your funds right away.
Another benefit of oil and gas factoring is the speed with which you can get the cash you need. Generally, once your request has been approved, you can expect to receive your funds in just a few business days. Some companies have even received their funds in as little as 24 hours! This shortened time frame gives oil and gas factoring a major advantage over traditional sources of financing.
3. Factoring offers flexible funding.
A factoring agreement grows and shrinks according to your needs. You can choose to factor as few or as many invoices as you like and you won't be required to continue factoring once your business no longer needs the assistance. Some factoring companies even offer agreements that have no extended contract at all.
4. It's simple to qualify for factoring.
One of the biggest benefits of using oil and gas factoring is how easy it is to qualify for the program. You won't have to pass a credit check or put down a down payment. Instead, your customers' reliable payment records serve as your credit. If your customers typically pay their invoices on time and in full, you won't have any trouble getting the factoring company to approve your request.
Do you think oil and gas factoring would be of help to your company? If you've been uncertain about this arrangement, learning about its benefits may help you decide that factoring is a great short-term solution for your business.