From fracking, pipeline construction, water and sand haulers and beyond, the oilfield industry is vital to our global economy. However, with lengthy payment cycles, documentation-heavy invoicing and high upfront costs, even the most efficient oil and gas businesses can face unreliable cash flow that impacts their daily operations.
That’s why many companies rely on factoring. When combined with thin margins, factoring becomes a natural fit for oil and gas companies to increase working capital. By converting outstanding invoices into immediate cash flow, factoring helps you maintain financial stability, take on new projects and achieve scalable growth.
So, which traits are essential to find in an oilfield factory company? What should you look for in a reputable and reliable oilfield invoice factor?
- Deep Industry Knowledge & Oilfield Experience
- Speed of Funding, Fees & Rates
- Free Credit Evaluations
- Dedicated Industry Experts
- Flexible Terms Built for Oilfield Operations
Deep Industry Knowledge & Oilfield Experience
Oilfield factoring requires more than general financial expertise. A qualified oil and gas factoring partner understands how upstream and midstream operations function, the realities of the Permian Basin and similar regions, and the unique challenges created by longer payment schedules.
Partnering with a representative who has firsthand knowledge of the oilfield industry ensures you get paid faster, making it easier to meet high operating expenses, payroll needs and cyclical pressures.
Speed of Funding, Fees & Rates
Every industry has specific fixed costs like payroll, fuel, equipment maintenance and other operating expenses, and one delay in funding can cause severe job disruptions. Oilfield service companies often turn to factoring for reliable same-day funding to meet their day-to-day cash flow needs.
An oilfield services factoring company who can provide quick funding with no hidden fees and highly competitive rates ensures you remain scalable for the long term.
Free Credit Evaluations
While oilfield services companies often work with large operators or contractors, it’s still important to check for creditworthiness. The right factor will not only offer free credit evaluations; they will also provide access to funding based on your customers’ credit, not yours.
Through complimentary customer credit checks, a strong oilfield factoring company will assess your risk based on current market conditions, saving you from any potential cash flow gaps.
Dedicated Industry Experts
In an industry as vital as oil and gas, trust and reputation matter. Longevity in this industry signals an ability to navigate market cycles, commodity price volatility and changing operational demands. A stable, experienced factoring partner provides you with a dedicated account representative who knows the ins and outs of the industry and can provide you with the service you deserve.
When you experience funding delays, need to run credit evaluations or have any other support questions, an oilfield factoring expert should serve as your single point of contact to resolve any and all time-sensitive issues.
Flexible Terms Built for Oilfield Operations
In a cyclical industry heavily impacted by market volatility, the pressures to constantly produce are ever-present. With the right factoring partner, you’ll get the flexibility you need to face these challenges while still maintaining your cash flow and increasing your scalability.
A factor with oilfield experience will understand the demands of each type of service company and offer funding based on your needs. Flexible factoring terms are especially critical for:
- Water haulers, whose operations are extremely cash-intensive due to fuel costs, fleet maintenance, driver payroll and disposal fees;
- Pipeline construction companies, which rely on factoring to pay crews, contractors and secure specialized equipment;
- Fracking companies, which face massive upfront costs and use factoring to move immediately from one job to the next;
- Rig movers, who depend on consistent cash flow to manage fuel, equipment maintenance and crew expenses.
The RTS Advantage for Oilfield Operations
Oilfield factoring isn’t only about faster access to cash. It’s about partnering with a financial team that understands the pace, pressure and complexity of it all. RTS combines flexible funding, industry expertise and hands-on support to help oilfield services companies manage delayed payment cycles, cover upfront costs and increase scalability, all while you stay focused on the work in the field.
When you need a factoring company that understands the unique challenges of oilfield operations, reach out to us!