A Guide for Selecting Oilfield Factoring Companies.
Coming up with a smart business idea is not a problem but rather the lack of funds to bring it to life. Anyone can now go after his or her dreams thanks to factor funding companies which give business enterprises the money they need to do the work. Given the amount of money investors in the oilfield have to cough up, factor funding companies have to engaged. It is crucial for you to consider the kind of a company you are getting in bed with so that you do not end up disappointed. It is the company that will be controlling your invoices which means you should not make random picks because you may be digging into your savings more often when the payments are delayed. You need to check out the reviews the firm has received before determining who to settle for. Even if a company has some negative reviews, do not write it off immediately especially if the positive reviews outweigh the negatives. Additionally, you should inquire or investigate more on how the company dealt with that kind of feedback. You are choosing the company to be your partner and this means there are responsibilities. You will benefit more if the company offers you support in the back-office issues like collections, risk analysis, credit analysis, treasury management as well as management of any accounts receivables.
The company does not just need experience in doing their job but also in the field you are doing business in. With a factoring company that has dealt with investors in the oil field, you will not have doubts about when the payments will be received thanks to the extensive professional networks and also knowledge of the invoicing requirement.
It is important to know the kind of services you are seeking and they can be recourse or non-recourse factoring. You will find recourse factoring more commonly in which it is the client who bears the ultimate liability for any invoice. For invoices which have not been paid for or disputes, they will be resold to the factoring company. When you are going for this option, there will not be high risks to bear but this comes with high advance rates. Non-recourse factoring programs attract higher fees compared to recourse. You ought to consider the length of time you will have to wait until the account is setup. Since your business operations will be in line, ensure you have selected a company that is not going to delay processing of the account.A lot of factoring companies will do this in a few days but this does not mean you should not ask about the waiting period.