Factoring: A Quick Cash Flow Solution
If your company is dependent on the oil industry in the United States, chances are you have to wait 30-90 days to get paid on your invoices. Let’s take a look at how oil and gas invoice financing provides a quick cash flow solution.
Meet Pete a dedicated oil field business owner and roustabout who provides a wide range of services including excavating, tubing, ditch digging, drilling, swabbing, hot oil, fracking, hauling, and other services to the oil and gas companies.
He invoices his customers on a regular basis and his business is booming, but Pete typically has a 60-day wait to get paid. Pete is looking for a cash flow solution to help him hire a crew, invest in equipment and cover day-to-day expenses to grow his business without incurring debt or extending his credit.
His bank is offering lending with a high interest rate, so Pete reaches out to Universal Funding and uses their flexible accounts receivable factoring solutions and low rates. After Pete provides his oil field services, he send invoices with the 30-90 day terms agreed upon with his customers. He then sends copies of all of those invoices to Universal Funding. Universal advances Pete 85% of the invoice amounts within a matter of hours.
Then, Universal Funding waits out the terms of the invoices to receive payments and then returns the reserve balance less the agreed upon factoring fee rate. Pete repeats the same process and submits more invoices to Universal Funding and continues to maximize his cash flow and focus on growth. By using Universal Funding’s factoring receivables solutions, Pete has the cash flow that he needs and he can now focus on bidding for more work. That’s a smart financial decision.
Make your next smart financial decision with confidence by calling Universal Funding at (800) 405-6035 to get your low rate today.