As oil prices trend up, so does the need for oil and gas factoring in the Texas Permian Basin. After several years in the doldrums, especially in Texas’s oil-rich areas of Midland and other areas of West Texas, it appears that the oil and gas industry is making a resurgence. Oil prices have rebounded above $50 per barrel in early 2017, from a low of $26 in 2016. Remains of a struggling oil market still exists, but hope is brewing as exploration and drilling investments are surging. This is good new for the oilfield service industry, in particular those companies that serve the large oil and gas producers.
Oilfield Services Factoring
As new and small oilfield service companies begin to service the Permian’s increased oil and gas activity, the need for unconventional financing increases. Banks are typically confined to lending to more established companies with years of profitability and strong financials. Small and growing businesses will find they need the services of a good oilfield factoring company.
Invoice factoring (also referred to as accounts receivable financing) is ideal for growing oilfield businesses in the booming Midland – Odessa area. Oilfield factoring allows a company to avoid long delays in collecting accounts receivable from their customers. The upsides are improved cash flow, little or no debt, and sustained growth.
Factoring companies in Texas, Oklahoma and other oilfield states are familiar with the needs of cash hungry businesses. With rising oil prices, demand for oilfield factoring services increases as cash flow crunches increase too. Businesses need cash to fuel the growth in their oilfield business and they turn to factoring companies.
Factoring companies fund invoices so oilfield businesses don’t have to wait to collect receivables. Usually, invoices can be converted to cash within 24 to 48 hours after it’s been generated. As long as the work or product has been delivered to the customer, the business can sell the fresh invoice to the factoring company.
Mazon Associates Factoring
Mazon Associates is a Dallas factoring company that serves many industries including staffing, manufacturing, business services and oilfield services. The friendly folks at Mazon Associates are professional and take an interest in each of their clients. To discuss your oil and gas factoring needs, please call Lisa Hultz of Mazon Associates at 800-442-2740. Lisa is the sales and marketing representative for Mazon Associates.