North Dakota Factoring Companies Helping Oil & Gas Companies Stay Liquid
North Dakota is known for its big open country, enormous farms and ranches, and abundant oil wells. Oil and gas can be a quite profitable industry; however, oil and gas funding can be hard to come by for many small businesses. Fortunately, oil and gas factoring companies in North Dakota offer fast and accessible financing options.
Invoice Factoring Meets Small Business’ Demand for Capital
Along with oil and gas fracking or industries such as staffing and payroll have increased dramatically in recently years largely to support oil and gas. Because the local population isn’t large enough to support the jobs in oil and gas, laborers from outside the region are always being recruited to work for the fracking industry. Thus the fields of both oil and gas and staffing are supported heavily by North Dakota accounts receivable financing. It’s a simple way for these businesses, which are largely made up by smaller businesses, to keep their employees getting paid on time and allows them to
North Dakota Factoring Companies Serve …
Many small businesses have come to rely on invoice factoring companies instead of banks. This is because invoice factoring companies will …
- Work with riskier, seasonal or project-based businesses such as oil and gas fracking as well as staffing whereas many banks won’t.
- Provide financing to those businesses that are new and have yet to prove themselves.
- Offer capital to businesses that don’t have good credit scores. This is because factoring receivables relies on the credit score of your clients and not your business.
- Deliver capital in as few as 3-5 business days so you don’t have to wait.
- Most industries can benefit from factoring
Factoring Companies Take on the Risk of Oil and Gas
Oil and gas fracking as well as staffing are high overhead enterprises. The expenses associated with these industries include:
- Drilling, digging, and excavating equipment and gear
- Raw materials for the fracking process
- Advertising and promotion to recruit workers and contractors from across the country
- Large staff payroll for engineers, site managers, and day to day workers, including roughnecks, riggers, roustabouts, equipment operators, welders, haulers and more
- Various local and national government permits
Fill Job Openings and Meet Payroll by Factoring Receivables
Accounts receivable factoring in North Dakota can enable small businesses in these industries to get the cash they need quickly to remain competitive and grow. Without necessary funding, other cash-rich firms will jump at the chance to bid for these jobs. Oil and gas exploration waits for no one.
Small Firms with Large Clients Are Good Fit for Invoice Factoring
Many national firms as well as local North Dakota accounts receivable financing companies are likely to offer the fast financing your small business needs. That’s because many clients of oil and gas companies and staffing companies are large corporate enterprises or government bodies. This arrangement, where a small business has a large entity as a client, is truly what factoring receivables was made for.
Factoring receivables is also well suited for oil and gas projects as well as short contract staffing jobs. Most local banks aren’t willing to take on the risk in order to support these types of temporary situations. Yet most factoring companies in North Dakota will take on short-term jobs and work with you to create an agreement that meets your individual business needs.