Oil & Gas Factoring On the Rise Again
As oil prices trend up, so does the need for oil and gas factoring in the Texas Permian Basin. After several years in the doldrums, especially in Texas’s oil-rich Permian Basin, it appears that the oil and gas industry is making a resurgence. Oil prices have rebounded above $50 per barrel in early 2017, from a low of $26 in 2016. Remains of a struggling oil market still exists, but hope is brewing as exploration and drilling investments are surging. This is good new for the oilfield service industry, in particular those companies that serve the large oil and gas producers.
As new and small oilfield service companies begin to service the Permian’s increased oil and gas activity, the need for unconventional financing increases. Banks are typically confined to lending to more established companies with years of profitability and strong financials. Small and growing businesses will find they need the services of a good oil and gas factoring company. Invoice factoring (also referred to as accounts receivable financing) is ideal for growing businesses that need improved cash flow. Oil and gas factoring allows a company to avoid long delays in collecting accounts receivable from their customers. The upsides are improved cash flow, little or no debt, and sustained growth.
Oilfield Factoring Companies
Factoring companies in Texas, Oklahoma and other oilfield states are familiar with the needs of cash hungry businesses. With rising oil prices, demand for oilfield factoring services increases as cash flow crunches increase too. Businesses need cash to fuel the growth in their oilfield business and they turn to factoring companies. Oil and gas factoring companies fund the invoices so businesses don’t have to wait to collect receivables. Usually, invoices can be converted to cash within 24 to 48 hours after it’s been generated. As long as the work or product has been delivered to the customer, the business can sell the fresh invoice to the factoring company.
Mazon Associates is a Dallas factoring company located that has over 40 years experience in the factoring industry. Mazon has a large portfolio of oilfield service companies in the West Texas region. The staff at Mazon is known for it’s friendly, responsive and professional service. They handle invoices for small and large oilfield companies and they know the stringent demands of the oil and gas industry. Within a week or two, your business can significantly improved its cash flow with the help of Mazon Associates’s factoring services.
About the Author: Rick Hultz is the owner of FactoringClub, a nationwide directory of over 100 factoring companies in North America. Rick is an industry broker and consultant for invoice factoring services.