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Factoring for

Oil + Gas



Oilfield Factoring Services

Oilfield factoring is a financing solution for service contractors and suppliers in need of immediate cash. Oilfield invoice factoring supplies consistent cash flow enabling companies to meet payroll, manage their expenses, and grow their business.



How Does Factoring Work?

Factoring is a straightforward process. An oilfield services company or oilfield supplier provides work, services, or products to their customers as usual. When it’s time to invoice the customer, the company sends the invoice to their factoring company, such as Dare Capital.

The factoring company advances the client a percentage of the value of the invoice, usually 90 percent, that same day. The invoice is forwarded to the client’s customer, who pays it in their regular terms. When the factoring company receives payment on the invoice, the remaining balance gets remitted to the client, less the factoring fee.

What are the Benefits of Oilfield Factoring?

Oilfield service companies typically wait 30 days, 60 days, or longer on payments from their customers. Factoring eliminates the wait by supplying a significant cash advance to the client. Instead of wondering when payment will show up, or worrying about having cash available for expenses, company owners can focus on the job at hand.

One of the top benefits of oilfield factoring is companies that do not qualify for traditional lending, are quickly approved for factoring.  Factoring lines are based on your customers’ credit and payment history, not that of your business.

Applying for and setting up an account for factoring is also much faster than traditional bank financing. At Dare Capital, we offer quotes in as little as 15 minutes, and our new client onboarding process is designed to get clients funded as fast as possible.