How Invoice Factoring Benefits The Oil and Gas Service Providers Industry
The Problem and The Solution
Our newest client, a Pipe Installation Company, came to us faced with major cash flow problems because their customers take to 90 days to pay on invoices. Our client, like most small to mid-sized companies, needs to pay their expenses much sooner. The challenge for most companies is having the working capable always available for direct, indirect and fixed business overhead expenses and being able to meet them all in a timely manner. We were able to close the gap between revenues and expenses with invoice factoring: purchasing their invoices for work that was completed! We wait for our client’s customers to pay so they don’t have to.
Business Moves Fast in the Oil and Gas Industry
In the oil and gas service industry, a company has to be able to take any job that comes their way and not be faced with having to turn it down because of cash flow problems. The potential cost of not taking on the next job, or a larger volume, can severely harm a company’s reputation. Business moves fast in this industry. Companies need to have financing in place so they can expand as fast as new opportunities arise. When a company knows growth is coming, it needs a flexible credit facility available to meet its needs no matter how much the company has in revenues and expenses. GMA Factor can supply the working capital, with Invoice Factoring, and a business owner can rest assured that the business will grow and the next opportunity will easily be within reach.
Factoring vs. Conventional Banking
At GMA Factor, our focus is on superior customer service while giving growing businesses an alternative to conventional bank financing. GMA Factor promptly offers oil and gas service companies cash flow solutions through the invoice factoring of their receivables, purchase order funding, or an accounts receivable-inventory backed line of credit. There are no long term contracts and decisions are made a lot faster than conventional bank financing.
- Rates as low as 1%
- Term sheets offered within 24 hours
- Lines from 5K to 10M
- No upfront fees
- No long term contracts