The oilfield industry is filled with companies of all shapes and sizes. From large exploration conglomerates to small service providers, every oilfield company has visions of cashing in on the recent oil boom. Unfortunately for some companies, the fight to achieve success is not a fair one – smaller service providers face a big task of competing against larger, better equipped companies when competing for the same business.
For many small companies, simply exploring business opportunities can be a challenge. When a business opportunity requires the advance purchase of a significant amount of supplies or a new piece of equipment, businesses without the necessary operating capital to make such acquisitions may miss out on a money-making opportunity. While larger companies often have the operating cash necessary to explore just about any opportunity, the lengthy pay delays common within the oil industry may leave smaller service providers without these funds.
For business owners, nothing can be more frustrating than missing out on a money-making opportunity, especially those that offer substantial pay. Unfortunately, when long delays lead to negative cash flow problems, smaller business owners may begin to lose the battle against larger, better funded operations.
With the competitive nature of the oilfield industry and the challenging economy, small to medium sized businesses often have trouble obtaining bank financing for their operations. When bank financing is not available, business owners may find the cash needed to compete with larger entities through invoice factoring.
The factoring process provides fast cash for completed invoices, giving business owners the operating capital they need now, without the lengthy delays common within the industry. Rather than watching bigger companies swoop in and take all of the work, factoring helps small businesses explore the many opportunities available within the industry. When work is complete, or a product has been delivered, the factoring process pays immediate cash for the invoice related to the transaction.
In many cases, factoring provides the capital small to medium sized business owners need to level the playing field with larger companies with more financial backing.
From water haulers to frac sand suppliers, welding services to roustabout companies, factoring offers the instant cash necessary to keep the business moving forward.
To learn more about invoice factoring, contact Scale Funding at 1-800-707-4845.