Opportunities in the oil and gas sector are set to increase in 2014 – find out how invoice factoring can help your business keep up.
Firstly, what is all the hype about?
According to a recent article in CNN Money, the US is set to overtake Russia as the biggest oil producer outside OPEC during 2014. The reason? There has been a huge investment in the production of shale gas in the US. This increased investment is partly due to new technologies, such as hydraulic fracking, that make the extraction of oil and gas from shale rock commercially viable.
The new processes involving shale oil and gas excavation are driving plenty of business for many companies involved in the oil and gas industry. The International Energy Agency estimates that the US will produce more than 11 billion barrels of oil and natural gas liquids per day in the second quarter of 2014.
So what does this mean?
Some great opportunities! However the funding required for providing goods and services to this specialized industry can, like the task of fracking itself, prove to be costly. Oil and gas financing can sometimes be challenging. Obtaining traditional financing, such as bank loans can be time consuming, and as a result, business opportunities can be missed due to a lack of working capital.
Invoice factoring can save the day!
So the industry is booming, and payment from your customers is reliable, but often not timely. Some customers in the oil and gas field can take 90 to 120 days to pay their outstanding invoices. The pressure is on for small subcontractors wishing to compete. Equipment is expensive, and hiring skilled employees can make a large dent in your operating expenses. Asking your customers to pay more quickly could easily force them to look elsewhere for goods and services.
Instant access to working capital could be the difference between success and failure. Factoring your outstanding invoices can provide your company with cash on accounts receivables not due to be paid for several months.
Bay View Funding understands oil and gas invoice factoring, and is available to answer any questions you may have about the process. Each member of our dedicated team promises to genuinely, and personally provide you with the best factoring solution to meet the unique and specific needs of the oil and gas industry. We are committed to a 100% satisfaction guarantee. With rates starting at ½%, cash in as little as 24 hours once you are initially approved, and funding up to $5 million, we have it covered!
