Find Out How Factoring Helps Oil & Gas Providers Get Steady Cash FlowOil & gas providers should be anticipating a windfall as far as profits are concerned given how profitable this industry has always been. Referred to all over the world as black gold, oil would always be in demand and wanted by nations and large corporations alike. Maintaining smooth operations would be pretty difficult, though, as far as the financial aspect is concerned. In order to keep operations going steady, one would need constant access to liquid capital. The problem with this is that such amount of money would not always be present, and this could cause a lot of problems. While most providers would then rely on a bank loan to solve the problem, not everyone actually has the credentials to do so.
Should You Opt for Invoice Factoring?
Invoice factoring is that financial tool in which your unpaid invoices would be purchased by a factoring agency and base the amount on its face value. A minimal commission would then be charged and deducted from the total amount as some sort of fee for the factoring agency’s services. Taking into consideration the quick turnaround and almost hassle-free processing, you might as well think of the minimal fee as a form of payment for the sake of convenience. In comparison with a bank loan, you would not need all the necessary paperwork simply because it is the reputation of your client which would be scrutinized and not yours. The factoring agency would then be the one to wait for the turnaround time for the invoice to be converted into cash which usually takes a few months as an industry standard.
Invoice Factoring and Oil & Gas Providers
In order to keep your operations running smoothly, you would have to maintain your rig in good condition. In order to do this, you would need constant maintenance inspections and checks as a guarantee for operational safety for everyone involved. You would be paying a lot in terms of human capital aside from technical maintenance. As such, you could benefit from factoring if you suddenly run short of cash and find yourself in great need for a quick cash inflow. Factoring also means not dealing with exorbitant interest rates and unnecessary paperwork.
How NeeBo Capital Could Help
NeeBo Capital is one of many reliable factoring companies catering to oil & gas providers for a long time now, and they never run out of clients thanks to their competitive edge when it comes to factoring services. On top of the typical benefits associated with factoring such as the irrelevance of your credit rating and collateral, NeeBo stands out by going the extra mile in providing unmatchable perks through their low interest rates which start at just around 0.59%. Aside from this, their clients also get to enjoy very flexible terms without having to maintain monthly minimums for amounts ranging from $5k to $10mm. No need to wait for invoices to turn into cash!
Why Choose Us?
Rates at 0.59% - 1.5% for 30 days
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General Articles about Accounts Receivable Financing and Factoring:
» 08/01/2012 Debt Financing or Off Balance Sheet Financing?
» 09/15/2011 What to know when selecting a Factoring Company