How Oil & Gas Invoice Factoring Works
Plain English, no jargon. From application to cash in your account — here is exactly what happens when an oilfield contractor factors their invoices.
Plain English, no jargon. From application to cash in your account — here is exactly what happens when an oilfield contractor factors their invoices.
When you factor an invoice you are selling an asset you already own — money already owed to you — at a small discount to get it today instead of 90 days from now. No monthly payments. No interest. No debt on your balance sheet.
✗ Traditional Bank Loan
✓ Invoice Factoring
Fill out a simple application with your company info, monthly invoice volume, and who your primary customers are. No tax returns. No business plan. No collateral. No credit score requirement.
What actually matters: who you invoice. If your customers are credible oil and gas operators, you have a strong chance of approval regardless of how long you have been in business.
Your application is reviewed against your customer base. This is a credit review of your operators — not you. Major energy companies like Chevron, Shell, Pioneer, and ConocoPhillips make approval straightforward.
Most applications receive a decision the same business day. Once approved, you sign a factoring agreement and start submitting invoices immediately.
Upload completed, customer-accepted invoices through the secure portal. The invoice must be for work that has already been done and accepted. Submit daily as you complete jobs — no batch schedule.
Up to 90% of the invoice value is wired or ACH’d to your account. When your operator pays, you receive the remaining reserve balance minus the factoring fee.
Example — $100,000 Invoice
| Advance paid today (90%) | $90,000 |
| Reserve held (10%) | $10,000 |
| Factoring fee (example 2.5%) | − $2,500 |
| Reserve returned when operator pays | $7,500 |
| Total you receive | $97,500 |
Rates vary by customer creditworthiness and monthly volume.
Free application. Same-day approval. Cash in your account within 24 hours.