Are you struggling to find effective ways to finance your oil or gas business?
At Porter Capital, our oil and gas financing services provide a sustained cash flow boost to fund growth and help your business operate effectively. You don’t have to have a perfect credit record or go through a lengthy application process. If you issue invoices to business customers, we can send you a cash advance in as little as 24 hours.
Our oil and gas invoice factoring solution is simple. Once you issue an invoice to a customer, assign the invoice to us. We will advance you between 85% and 90% of the total invoice value in as little as 24 hours. So you don’t need to wait 30, 60, or even 90 days to receive the payment. We will then collect your customer’s payment when it’s due. Then, we pay you the remaining balance, minus our small factoring fee.
We offer low factoring fees that start at just 0.75% and provide advances worth up to $10 million per month. If you’re frustrated by slow payments from customers, have a slow cash flow cycle, or want a fast funding option that you can use as and when it’s required, this could be the perfect solution for you.
The Benefits of Oil and Gas Factoring
With market prices that fluctuate rapidly and lengthy payment terms standard in the industry, many oil and gas companies struggle to maintain the cash flow they need to cover operational costs. This is where oil and gas factoring can help:
Fast Access to Funds
Once the agreement is in place, send us a copy of the invoices you want to raise funding against, and we can have the money in your bank account within 24 hours.
At Porter Capital, we offer some of the industry’s best advance rates, with upfront payments of 85% to 90% and competitive fees that start at just 0.75%.
No Physical Assets Are At Risk
Unlike other lenders, we do not require collateral in physical assets such as vehicles or machinery. The only collateral we need is the invoice itself.
Businesses That Do Not Qualify For Traditional Funding Can Apply
We routinely work with businesses that do not qualify for a bank loan because they have little or no collateral or have adverse events on their credit record. If you have creditworthy customers, have been in business for two or more years, and invoice for a minimum of $25,000 a month, you have a high chance of approval.
All Oil And Gas Companies Are Considered
We work with companies that are involved in exploration and production (E&P), extraction, refining, transportation, security, and construction.
Factoring Solutions For Every Situation
We offer a diverse range of factoring products, so you’re sure to find a solution that meets your particular needs. Products include:
- Recourse factoring – The funds are extended for a set period, and you buy back any invoices we are unable to collect.
- Non-recourse factoring – We are responsible for collecting payment from the customer no matter how long it takes. You are not liable for clients who do not pay.
- Spot factoring – You can pick and choose the invoices you want to raise funding against depending on your circumstances at the time.
- Whole-ledger factoring – We take over the business’s entire portfolio of invoices to provide a steady income stream.
Easy Approval With No Long-Term Contracts
The application process is quick, and our approval rates are high. There’s also no requirement to sign up for a long-term contract, so you can use oil and gas factoring for as long as it suits you.
No Monthly Repayments
Unlike a bank loan, there are no monthly repayments associated with oil and gas factoring. That reduces your reliance on debt and allows you to keep more of your cash in the business.
What is Oil and Gas Factoring?
The oil and gas industry is notoriously difficult to operate in. There are constant cash flow demands, whether to pay employees, cover research and development costs, or purchase equipment. Lengthy payment terms are the norm, meaning there are periods when there’s a lot of money flowing out but very little coming in. That can make it challenging to maintain healthy cash flow levels.
Rather than worrying whether you have sufficient funds to make payments or operate at full capacity, oil and gas factoring allows you to unlock the cash tied up in unpaid invoices. By turning your receivables into cash, you will have the working capital needed to go after lucrative projects and keep your business growing.
Most importantly, factoring is not a loan. Instead, it is an effective way of getting faster payment for your business. The level of funding you can access also grows in line with your invoice values, making this a scalable funding option for businesses of every size.
How Does Oil and Gas Factoring Work?
The factoring process at Porter Capital is fast, simple, and effective. Once approved, you will be assigned a single point of contact who will guide you through the process.
- You send us a copy of an invoice for work completed.
- We verify the invoice and run a credit check against the client.
- You’re advanced between 85% and 90% of the invoice’s value upfront.
- We collect payment from your customer when it is due and send you the remaining balance of the invoice minus the factoring fee.
Do You Qualify For Oil and Gas Factoring?
Qualifying for oil and gas factoring at Porter Capital is simple, even if your business is relatively new or does not have the best credit. It’s your customers who are liable for the invoice’s payment, so as long as your customers are creditworthy, you stand a good chance of being approved.
Just give us a call, and we can take a look at your financial situation to discuss how we can help. We can process and approve your initial application in just three business days, and there are no upfront costs. Funds for the invoices you send us are released in only 24 hours.
Why Porter Capital?
We work with oil and gas companies all across North America, granting them access to their income sooner rather than later. We pride ourselves on our highly competitive factoring fees and offer some of the industry’s best advance rates. Get in touch today to discuss your funding options.