How Oil Factoring Works
How Oil and Gas Factoring Works?
The process is rather simple. Depending on the length of your relationship with your Oil and Gas clients, credit terms extended, and how creditworthy the accounts receivable customer is, your Oil and Gas company can usually obtain between 80% to 90% of your total value of the an invoice up front from Oil Capital factoring finance company, with the remaining difference to be returned after payment is received — less the invoice factoring financing fee, which is typically anywhere from 1%–4%.
Many of our Oil and Gas clients, including oilfield service providers, oil drilling companies or haulers, use our invoice financing or receivable factoring services to increase their cash flow for daily expenses. This allows them to eliminate the need to follow up on their invoices. Essentially, Oil Capital becomes your back-end office, helping you stay organized and on top of your invoices.
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