Posted by NCF On March 26,2019
Access to working capital is essential to the success of oil and natural gas distributors. However, many oil and gas distributors have a good portion of their capital tied up in unpaid receivables. Fortunately, there is a way to catch up on unsettled customer accounts, improve cash flow, and build up capital to grow into new markets.
The Relationship between Overhead Costs and Receivables
Oil and Gas distributors
have a number of overhead costs to keep balanced. Employees, facilities, storage, equipment, transportation, marketing, the product itself, and more all need to be paid for to keep operations moving. In order to cover those costs, oil and gas distributors rely on regular payments from their customers. Since the standard business practice is to issue invoices with staggered payment schedules of 30 days or more, oil and gas distributors can find themselves wai