Drilling for oil is a complex process that requires numerous pieces of expensive machinery. In order to purchase new equipment and maintain what your company already has, you need a constant supply of cash flow. This is a frustrating catch-22 for many business owners. Your customers require open credit terms of 30 days, 60 days or even as much as 90 days to pay outstanding invoices. In the meantime, your oil drilling company goes without the cash flow it needs to pay employees, maintain equipment and expand the business. An accounts receivable loan from 1st Commercial Credit is the ideal solution to this common business dilemma.
Oil drilling companies that are unable to offer favorable credit terms to customers will soon go out of business. Unfortunately, the desire to remain competitive often leads to unwise business decisions from managers of oil drilling companies. Some examples of this include obtaining a business credit card at a high rate of interest and caped credit limits, or taking out a bank loan the company may not be able to repay. Factoring receivables for oil drilling companies is ideal because your company already has money coming to it in the form of accounts receivable invoices.
There is a small risk in accounts receivable financing that your customer will default on repaying the outstanding invoice. However, you can avoid this by only submitting invoices to 1st Commercial Credit from customers that are credit worthy. Once we fund your unpaid invoices, You receive between 80 to 90 percent of the invoice value immediately and the remainder when we receive payment from your customer. We do not deduct our fee until the invoice is paid in full and deduct from the reserve balance.
Our factoring company processes all accounts receivable loan applications the same day they are received. You don't have to be concerned if your company has bad credit or a minimal credit history. Our decision is based entirely on your customer's ability to pay the outstanding invoice in a timely manner. All we need to do is verify the business credentials of your oil drilling company and review your customer's past payment history. When you forward your accounts receivable aging report, just indicate which unpaid balances you would like 1st Commercial Credit to fund for you right away.