US Oilfield Slowdown and Accounts Receivable Factoring Companies Coming to the Rescue
With the US Oilfield Slowdown, banks are tightening oil service company lending facilities. Accounts Receivable Factoring company with oilfield experience can help with non-recourse factoring.
We are witnessing a sharp downturn in gas prices and at the same time, oil industry layoffs. This affects how banks look at the industries financial position and its existing line of credits and loans.
Banks are tightening credit terms making it difficult for oil and gas suppliers, distributors, and service companies to obtain financing. This is happening across the US from North Dakota to Oklahoma to Texas. What can an oil patch vendor or supplier do? Non-Recourse Factoring for the oil patch can give you both working capital. Most importantly, it gives you peace of mind with its credit protection program.
Factoring companies across the country are starting to pick up where the banks are failing. Accounts receivable financing enables oil and gas industry providers to continue to receive funding for their ongoing projects. Factoring companies look at the creditworthiness of the oil and gas providers client. For example, a business has a good chance of working with a factoring company if they sell equipment, services or raw materials to large energy companies such as Exxon Mobil, Royal Dutch Shell, Aramco, Chevron or Conoco Phillips.