The energy industry is experiencing high demand right now. From upstream, middle market, and consumer-level companies in the oil and gas sector, to solar installers and emerging technologies in alternative energy, the industry is on an upward trajectory. But for companies in the energy industry to experience growth in the upcoming years, they need to achieve better parity between sales and revenue.
Sales and Revenue Are Not Always Equal
Energy companies have a lot of expenses ranging from basic overhead costs to payroll, transportation, equipment, supplies, marketing, and much more. Having the ability to fill orders is one of the biggest expenses, and invoices are frequently tied to staggered payment schedules of 30, 60, and 90 days. While orders and deadlines do not wait for anyone, invoice payments are staggered, so energy companies are spending more while their clients take a month or longer to remit payment on goods and services rendered. Sales are projected to increase tremendously for the foreseeable future, but that only looks good on paper if there is no revenue to show for it. There needs to be a way to bring sales and client payments into closer alignment.
Better Cash Flow Parity for the Energy Industry
The best way to achieve a one-to-one ratio between sales and revenue is through accounts receivable factoring. By using accounts receivable factoring, companies in the energy industry can get immediate access to capital from unpaid invoices without impacting credit ratings or taking on debt. Accounts receivable factoring eliminates staggered payments schedules, so energy companies can boost cash flow and build up capital reserves to expand into new markets. When energy companies use factoring, they can:
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Meet payroll requirements
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Smooth out uneven revenue cycles
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Keep supplementary cash on hand
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Augment their overhead
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Develop and expand into new technologies
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Quickly access capital without debt
Get Started Today
New Century Financial is a nationwide leader in accounts receivable factoring services for the energy industry. We serve energy companies at all levels, and put businesses in the driver’s seat by letting them choose which invoices or parts of invoices we factor. Our services are fast and transparent with no upper limits, and we make funds available within 24 hours. Why wait a month or longer for payments from your clients? Supercharge your cash flow with factoring services from New Century Financial today.