What is an Oil and Gas Financing and Energy Financing?
Oil and Gas Invoice Factoring is an Invoice Financing product provided by lenders that factors the accounts receivable invoices for companies in the Oilfield Services, Oilfield Supplier and Natural Gas Supply related Industries. Oil and Natural Gas related companies typically pay their invoices for supply and service somewhere between net 30 to net 90 business days.
Our team is committed to helping your business grow with Oil & Gas Factoring and Energy Invoice Factoring and will guide you through the loan process each step of the way.
What companies could use Oil and Gas Factoring?
- Oilfield Service Vendors and Suppliers
- Water Haulers
- Frac Sand Haulers
- Roustabouts
- Vacuum Trucks
- Environmental Cleanup
- Excavating / Dirt Work
- Tank/Pipe Cleaners
- Pressure Washing
- Component Manufacturers
- Inspection Services
- Flow Back Testing
- Gravel Pit Suppliers
- Rig Movers and more
PARTNERSHIP YOU CAN RELY ON
SEASONED BUSINESS CONSULTANTS
An Oilfield Service, Oilfield Supplier, or Natural Gas related company that services the Oil & Natural Gas Industry sell its accounts receivables financing invoices to a lender that specializes in Oil & Gas Factoring. They are converting up to 95% of their Invoice’s face value into cash within a couple of days.
Then once the Oil or Gas client has paid the invoices in full, the remaining money is returned to the borrower minus a small factoring fee. If an Oil & Gas company has enormous scale creditworthy clients plus a steady flow of business, the approval process may be relatively simple.
The average Oil & Gas Invoice is typically paid somewhere between net 30 to net 90 business days, sometimes more to the Oil & Gas related company that services the industry. This can sometimes cause some cash flow constraints, in between covering all of the operating expenses and waiting to be paid for their Oil and Gas services.
Companies can remove the need to wait to be paid by utilizing Oil & Gas Factoring to unlock the liquidity trapped in their receivables. Oil & Gas Financing and Energy Factoring grants access to funding based on your customers’ credit and profile, not so much your company’s credit, profile, and business history.
Maintaining healthy cash flow is crucial to operate your business through the ups and downs of the Oil & Gas and in the Energy industry. Since the awarded capital is based on your invoices, the limits on funding as your company grows are endless.
The Benefits of Receivable Financing & Non-Recourse Invoice Factoring For Oil, Gas, and Oilfield Energy Companies is that Oil and Gas Factoring could unlock a significant portion of a company’s liquidity early before their clients pay on their lengthy terms.
Reliable, consistent cash flow based on your account receivables to ensure you have the working capital you need.
The flexibility to factor what you want, when you want – giving you the power to control your costs and get the cash necessary to run your business.
Fair evaluations of payments based on our understanding that a company’s ability to pay is more important than how quickly they pay.
Cash without debt – invoice factoring involves the sale of your invoice, not a loan. That means you can get the money you need without adding debt.
Approval is quick and only takes a few short days. The most important qualifier for getting approved for Oil and Gas Factoring and Energy Invoice Financing is a customer base with a strong credit history (with a record of paying bills on time). The second most important qualifier is that your invoices are free and clear, meaning you do not have any liens or loans that use accounts receivable (A/R) as collateral.
SUBMISSION PACKAGE
– Signed Application
– 6-12 Most Months of Business Bank Statements
UNDERWRITING DOCUMENTS
– 2 Most recent years of Business Financials
– Including Profit & Loss and Balance Sheet
– 2 Most Recent Years of Business Tax Returns
– Copy of Most Recent 941 Filing
– Full Aged AR Reports with Detailed Payer Information by Insurance Provider
– Accounts Payable Aging Summary
– The owner (s) Personal Financial Statement
– Company Debt Schedule
– Proof of Ownership
What is Energy Invoice Financing?
Energy Invoice Financing is an Invoice Factoring product provided by lenders that factors the accounts receivable invoices for companies in the Energy Trading or the Renewable Energy Trading Industries. Major Utilities related companies also typically pay their Invoice for supply and service somewhere between net 30 to net 90 business days.
This can sometimes cause cash flow constraints on companies that service the Oil, Gas, and Energy Sectors. Businesses that work in these industries can pledge or sell their invoices in return for an immediate capital, usually 70-90% of the invoice amount. These companies can then, in turn, divert the excess liquidity towards operating expenses, payroll demands, purchasing equipment, or whatever is needed to grow the company.
COMPETITIVE TERMS
EXPERT SERVICE
Retail Energy Providers
Wholesale Energy Providers
Renewable Energy Traders
Energy Trading Companies
Renewable Energy Providers
As stated earlier, Energy Invoice Financing is not a loan; instead, it is Invoice Financing provided by a lender that specializes in accounts receivables financing to the Energy Sector.
Whether a company’s invoices are from Power Purchase Agreements (PPA’s), Energy Spot Trading Contracts, Energy Congestion Contracts, or Renewable Energy Contracts (REC’s) Energy Financing may be able to factor the invoices.
Major Utilities that purchase excess electricity energy from companies that sell conventional electricity and renewable energy, typically pay their Energy Invoices anywhere between net 45 to net 90 business days in terms.
This could leave companies that produce energy for resale or those that simply trade energy in tight cash-flow constraints while they wait for their invoices to be paid.
Using Energy Invoice Financing companies that service the sector can sell their invoices at a discount to a lender that factors, in exchange for a lump sum of cash.
The factor then owns the invoices and would be paid when it collects from your energy-related clients, typically in 30 to 90 days. Once the clients pay, the lender will remit any capital remaining off of the invoices face value minus the factoring cost of capital fees.
Armed with excess money, Energy-related companies can purchase additional energy contracts, hire other staff to expand the business, expand their marketing efforts, all to grow their companies.
Slow Receivables Payments keeping a healthy cash flow can be challenging when clients are reluctant to pay their bills. Energy-related company owners may have to wait several months before receiving a payment from the business’ clients.
Because it can be impossible to wait that long, energy-related companies can factor their invoices and avoid the delay that comes with waiting for payment. They can have most of the money they need and continue with their work while allowing the factor to take over collecting on the outstanding invoices.
When companies in the Energy Industry factor their invoices, the owners can receive most of the money owed to them by their clients.
They can use this money to:
- Make payroll
- Buy supplies
- Expand their client base
- Pay outstanding utility, advertising bills or any other financial obligation
They do not have to give an account to the factor for precisely what they plan to use their extra cash on hand.
Energy Invoice Financing can free up the capital needed to buy equipment and supplies. Companies in the renewable energy market have to staff on the cutting edge of technology, and they have to keep expanding their facilities to boost production. If the equipment breaks or becomes outdated, it can only be a matter of time before businesses start to lose money and customers. Energy-related companies have to stay on the cutting edge to remain viable in this industry.
Seasonal and Sales Fluctuations even as demand for electricity and energy continues to increase, some fluctuations do exist in the industry. When the market falls, business owners often see their cash flow suffer. As orders for excess Energy fall as well. When they need capital until the sales pick back up again, energy-related companies can factor their invoices and raise the money they need immediately.
Approval is quick and only takes a few short days. The most important qualifier for getting approved for Oil and Gas Factoring and Energy Invoice Financing is a customer base with a strong credit history (with a record of paying bills on time). The second most important qualifier is that your invoices are free and clear, meaning you do not have any liens or loans that use accounts receivable (A/R) as collateral.
SUBMISSION PACKAGE
– Signed Application
– 6-12 Most Months of Business Bank Statements
UNDERWRITING DOCUMENTS
– 2 Most recent years of Business Financials
– Including Profit & Loss and Balance Sheet
– 2 Most Recent Years of Business Tax Returns
– Copy of Most Recent 941 Filing
– Full Aged AR Reports with Detailed Payer Information by Insurance Provider
– Accounts Payable Aging Summary
– The owner (s) Personal Financial Statement
– Company Debt Schedule
– Proof of Ownership
In closing whether it’s oil in our homes, gas in our cars, or turning on the lights when we enter a room. We are a society that relies on energy to power every aspect of our lives. Energy is stable by which we live by, and the companies that help service the Oil, Gas, and Energy industries are crucial to our nation.
AmeriDream Capital specializes in accounts receivable financing for the Oil, Gas, and Energy Industries. We understand the unique challenges of the sector and can provide the financial support your company needs to help manage growth, take advantage of opportunities, or help fund payroll.
Our team at AmeriDream Capital is ready to provide your business with access to a few targeted Oil & Gas Factoring and Energy Invoice Factoring solutions that could speed up your company’s cash flow. Please apply online, email us for an appointment, or call us today.
Our team is committed to helping your business grow with Oil & Gas Factoring and Energy Invoice Factoring and will guide you through the loan process each step of the way.
Available Capital Limit
Up to $100M per Invoice
Standard Interest Rates or Cost
Rates start at 1.5% for the 1st 30 days
Typical Underwriting TimeLine
3-5 Business days
Average Term Limits
12 to 24 Months
In closing, Whether it’s oil in our homes, gas in our cars, or turning on the lights when we enter a room. We are a society that relies on energy to power every aspect of our lives. Energy is stable by which we live by, and the companies that help service the Oil, Gas, and Energy industries are crucial to our nation.
AmeriDream Capital specializes in accounts receivable financing for the Oil, Gas, and Energy Industries. We understand the unique challenges of the sector and can provide the financial support your company needs to help manage growth, take advantage of opportunities, or help fund payroll.
Our team at AmeriDream Capital is ready to provide your business with access to a few targeted Oil & Gas Factoring and Energy Invoice Factoring solutions that could speed up your company’s cash flow. Please apply online, email us for an appointment, or call us today. Our team is committed to helping your business grow with Oil & Gas Factoring and Energy Invoice Factoring and will guide you through the loan process each step of the way.”
