Oilfield business owners have many goals in mind when planning the operations of their company. From creating a sound reputation for the business to expanding the size of the company, these goals vary widely from owner to owner. There is one goal that every oilfield business owner shares: maximizing the profit of the company.
Building profits can be difficult, especially with the competitive nature and high operating costs found in the oilfield industry.
Late payments for equipment, vehicles, labor and utilities can result in significant fees and interest. Factoring offers the cash you need to meet the financial obligations of the business on time, allowing you to limit the costs of late payments and accruing interest. The more control you take over your expenses, the more money stays within the business, and ultimately your pockets.
Bidding on oilfield projects is easy – purchasing the materials and fuel needed to complete the job is a bit more challenging. Many projects within the industry involve out-of-pocket costs on the business owner’s behalf; factoring provides the operating capital necessary to take on these jobs, and to further explore additional opportunities.
Distancing your business from your competitors is important, especially when you are bidding on available projects. To distance yourself from the competition, it may be necessary to purchase new equipment, hire additional skilled laborers and invest in other aspects of your own business. When cash flow is an issue, these expenditures may seem impossible. Factoring your invoices offers the capital you need to improve your business, and your chances of outpacing your competition.
When your business has cash flow issues, or spends more money than you receive over a set period, you may encounter expenses that could otherwise be avoided. Bank fees resulting from overdrafts, missed payments, or low account balances can quickly add up – so can interest on equipment and vehicle loans. Making sure that your business has a positive cash flow, or more money coming in than going out, can help you avoid these expenses.
Explore the potential profit-building benefits of factoring. Learning how factoring can help your business build profits is simple, just call Scale Funding at 800-707-4845 to speak to a cash flow expert about your invoice factoring needs.