Invoice factoring is a financing solution used by oilfield services companies and suppliers in need of immediate cash. Factoring provides consistent cash flow, enabling oilfield service companies to meet payroll, manage their expenses, and grow their business.
Oilfield services companies typically wait 30 days, 60 days, or longer on payments from their customers. Factoring eliminates the waiting for customer payments by supplying a significant cash advance on open invoices. Instead of wondering when payment will show up, or worrying about having cash available for expenses, company owners can focus on the job at hand.
Factoring is a straightforward process. An oilfield services company or oilfield supplier provides work, services, or products to their customers as usual. When it’s time to invoice the customer, the company sends the invoice to their factoring company, such as TCI Business Capital.
The factoring company advances the client a percentage of the value of the invoice, usually 90 percent, that same day. The invoice is forwarded to the client’s customer, who pays it in their regular terms. When the factoring company receives payment on the invoice, the remaining balance gets remitted to the client, less the factoring fee.
Since 1994, TCI Business Capital is known as a leader in factoring for oilfield services companies. Our factoring programs are customized to fit the unique needs of each company. We understand timing is critical and our account onboarding process is designed to get clients set up quickly, so they can continue to focus on their business.
In addition to the cash from factoring, TCI Business Capital has many value-added services for clients, including:
At TCI Business Capital, we are driven to provide our clients with superior customer service and support. Start growing your oilfield service company today! Get a quote in 15 minutes or less.