Oilfield services financing
Invoice factoring gets oilfield service companies cash faster.
For more than 25 years, Catalyst has provided financing options to businesses in the oil and gas sector. We have worked with many entrepreneurs to launch or grow their energy sector businesses. While the sector offers many lucrative opportunities, we understand the risk and volatility that is inherent with serving oil and gas companies.
If you are a new or growing business, you typically cannot wait 30-90 days for payment after providing services. You have payroll demands, equipment costs, and other operating expenses that are likely due now. We help fill the gap and get you cash as soon as your invoice is generated.
This type of financing, known as invoice purchasing, factoring, or accounts receivable financing is what we have specialize in at Catalyst. We can help you significantly improve cash flow at reasonable, competitive rates. We also know your customers and their requirements, so we can help you get started quickly.
Why factor with Catalyst:
Our team provides a level of service and personalized attention uncommon in our industry. You'll have a direct contact who manages your account and provides assistance with credit decisions.
- Highly competitive rates
- No long-term contracts
- No maintenance fees
- Online reporting
- Rebates paid weekly
- Advance rates up to 90%
- Daily reporting of receipts
- Recourse and non-recourse programs
Your financial interests are our top priority.
No long term contracts means that as soon as your business is ready, we help you transition to a traditional bank line of credit. Many of our customers actually come to Catalyst because their banker refers them and trusts us to provide the best service. Our average customer works with us for 18-24 months before qualifying for a line of credit.
Oil and Gas Industry Case Studies
Fixing COVID cash flow challenges
We helped this oilfield torque and test company grow through an increased line of credit and equipment financing.
We worked with the bank to structure a different kind of payment plan.
A young fabrication company hit a rough-spot when the oil and gas market began to decline in 2015. They maxed out their line of credit with the bank and were upside-down in their payments. Their primary collateral for a line of credit was their A/R. The borrower needed more working capital, but the bank couldn’t extend them anymore.
“Catalyst acted quickly and professionally. They worked with me and the customer to get them back to work.”
Beyond just looking at receivables, we looked at the company’s ownership, opportunities, and vision. Even though this particular company was experiencing a temporary loss in profit, the potential for growth was evident to our team.
Factoring for Oilfield Service Company
This company was established because of the increased demand for welding and fabrication to service the fracking fleets in West Texas for the oil & gas industry. Catalyst helped fund their explosive growth.
“We would not be where we are today without the help of Catalyst”
When Jaguar Fueling’s funding was impacted by Hurricane Harvey, Catalyst helped meet their cashflow needs and got them back to bank financing.