The oil & gas industry in North America is a profitable yet challenging one. The biggest hurdle small business owners face in the way of growth is cash flow. Liquidity problems generally arise from slow-paying customers, which is the norm in the oil and gas industry.
Extended customer payment terms mean business owners within the oil and gas industry often wait more than 90 days for invoice payment – making it difficult for these small businesses to maintain their cash flow and take on new projects.
Factoring allows businesses to convert their outstanding invoices into cash flow quickly. Factoring has become essential for all businesses within the oil and gas industry. Getting funds through invoice factoring is faster, easier, and more accessible than traditional oil and gas loans. It is also a great option for new oil and gas businesses, as it doesn’t require stringent credit checks or lengthy sales records.