Almost every aspect of our economy depends on the oil and gas industry, right down to the supply chains that move energy resources and finished products from coast to coast, and even overseas. Oil and gas sales are on the rise, but that doesn’t mean revenue is coming in any faster.
Business is Faster Today than Just a Few Years Ago
Everyone from private homeowners to gas stations, heating companies, petroleum distributors, on up the market have the ability to monitor gas an oil, and place orders immediately. In response, oil and gas companies have had to improve supply chains and response time. However, despite advances in the oil and gas industry, the aging windows on invoices has remained the same. Customers at all levels still have up to 90 days to remit payment on open invoices. The lag in revenue is felt on the back end, and companies cannot keep up with customer demands because the capital simply isn’t there to maintain overhead expenses. If there were a way to bring the ratio of sales and orders closer to the amount of revenue coming in, oil and gas companies would be able to grow to meet customer demands at all levels.
Boosting Cash Flow with Invoice Factoring
Fortunately, businesses within the oil and gas industry have a way to bring in revenue at the rate of customer orders. Invoice factoring boosts cash flow and streamlines the accounting process. Instead of waiting between 30 and 90 days to see payments on orders, factoring converts open invoices to capital with the span of a single business day. As invoices are generated, they are submitted for factoring, and the funds are made available immediately. Invoice factoring improves cash flow, allows businesses to speed up transactions, frees up internal resources, and reduces the need for loans.
New Century Financial provides comprehensive factoring services to the oil and gas industry to allow businesses to even out cash flow, cover overhead expenses, build up growth capital, and much more. Contact our offices today and put our expertise to work for your business.