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What could you do,
if you had Cash Today?
Factoring Lines From $10K to $20M

What Is Oilfield Factoring?

Oilfield Factoring Provides You Cash Today

What is oilfield factoring? Oilfield factoring is a type of financing many companies use as a source for immediate cash. Sometimes called accounts-receivable financing or invoice financing, factoring allows companies to get immediate payment on their invoices, instead of waiting for 30, 60, or up to 90 days for customer payment.

Oilfield factoring is a simple and straightforward process, here’s how it works:

How Oilfield Factoring Works

  1. Complete work and billing as normal.
  2. Send the invoice to the factoring company.
  3. Receive the cash advance from the factoring company.
  4. Customer pays the invoice to the factoring company.
  5. The remaining balance, less a fee, is paid to you.

The Advantages of Oilfield Factoring

Oilfield factoring can be extremely advantageous for a number of reasons. First, companies get paid immediately, giving them the cash and flexibility to operate on a day-to-day basis without having to wait for customer payment. Second, invoice factoring is not a loan, so businesses can have additional capital at their disposal without having to qualify for traditional lending or increasing their debt. This is because the cash provided by the factoring company is based on the credit of the company’s clients, not the company itself. Finally, factoring companies often have invaluable services that go beyond collecting invoices such as credit analysis and risk, treasury services, and discount programs and savings opportunities.

9The Keys of Oilfield Factoring

  • Simple transaction
  • Provides immediate cash
  • Based on end-customers credit
  • Doesn’t add debt

Value-Added Services

The need for cash is why most businesses enter into a factoring relationship.  In addition to improved cash flow,  value-added services from a trusted factoring company can strengthen the client’s business.

  • Credit analysis and risk assessment. A prospective customer presents new opportunities, but do they pay their bills?  Knowing the credit history and payment trends of potential customers gives insight into the quality of the potential customer.
  • Treasury services, including online reporting. Funds are advanced to clients via ACH deposit, wire transactions or even check. Online reporting of all transactions is a valuable line of communication.
  • Collection expertise. Expertise, resolve, and diplomacy should be part of the process of collecting on overdue invoices.
  • Discount programs and savings opportunities. Many factoring companies will have programs clients can use to save money on business expenses and supplies. The savings from these programs can be significant.

Since 1994, TCI Business Capital has provided best-in-class factoring services to thousands of small and mid-sized companies across the United States. We offer reliable cash-flow solutions enabling companies to meet the challenges and opportunities they face.