Factoring is also fast and flexible. Unlike bank loans or other traditional financing options, invoice factoring does not have a lengthy approval process. The amount of approved funding is based upon the creditworthiness of your customers and the diversification of your customer base. So, as your business grows, the amount of invoices eligible for factoring also grows, making it the ideal solution for businesses experiencing rapid growth. This is especially important as new opportunities pop up in the oil and gas industry quickly and you need the cash flow to act.
What Can Factoring Be Used For?
With invoice factoring, you can fund any of your working capital needs, including:
- Payroll for engineers, installers, movers, laborers, and more
- Equipment purchases
- Purchase of supplies, such as sand, gravel, water, or rock
- Paying for permits, licenses, or regulatory matters
- Transportation of equipment
- Cleanup, maintenance, or repairs
Besides paying for expenses, capital can also be used for new initiatives or growing the business. Many companies use factoring to augment their cash flow, allowing them to offer more generous credit terms to customers or offer more competitive rates on financing.