Oilfield services companies face a critical cash flow challenge: you provide essential services like drilling support, equipment rental, and maintenance to major oil and gas companies, but payment terms stretch 60-90+ days or more. Meanwhile, you need immediate cash for equipment, labour, fuel, and insurance.
Capitally’s oil and gas factoring transforms your accounts receivable into immediate working capital, eliminating the wait for extended payment cycles.
The Cash Flow Challenge
Operating in this capital-intensive industry means investing heavily upfront in specialized vehicles, equipment and skilled labour, then waiting months for payment from clients with complex approval processes. This gap becomes more challenging during growth periods when oil prices are strong and drilling activity increases—you need to expand operations while financing growth out of pocket.
Many oilfield services companies have strong operational capabilities but may struggle with traditional bank financing due to past commodity price impacts, even when current contracts are solid and clients are creditworthy.
How Capitally’s Oil and Gas Factoring Works
Instead of waiting 60-90+ days for payment, you can access 75% or more of your invoice value within a business day with Capitally. The process is straightforward:
- Complete services, obtain field consultant signoff, and invoice your oil and gas client
- Sell that invoice to Capitally
- Receive the majority of invoice value immediately
- Your client pays Capitally according to normal terms
- You receive the remaining balance minus our factoring fee
This creates predictable cash flow that aligns with your operational needs and scales with your business growth.
Why Oilfield Services Are Ideal for Factoring
Oilfield services companies are particularly well-suited for Capitally’s factoring because you typically work with large, established oil and gas companies that have strong creditworthiness and pay reliably. Your invoices can be substantial, are seasonal, and the contract- and PO-based nature of your work, along with typical industry approval processes, provides clear documentation that we can easily evaluate.
Capitally’s factoring focuses on your receivables and client creditworthiness, making it accessible even if your equipment is already pledged to other financing arrangements.
Additional Benefits
Beyond immediate cash flow, Capitally’s oil and gas factoring offers:
- Professional collections management – We handle invoicing follow-up, potentially improving client relationships and payment timing
- Enhanced reporting – Detailed visibility into cash flow patterns and client payment behaviours
- Credit protection – Insurance that protects you if a client fails to pay
- Access despite past challenges – Our focus is on current client creditworthiness rather than historical financial performance
Qualification Requirements
Most oilfield services companies readily meet factoring requirements:
- B2B operations serving oil and gas companies
- Invoice size typically $1,500+
- Creditworthy clients like established oil and gas companies
- Standard payment terms with contracts free from liens
Is Capitally’s Factoring Right for Your Company?
Capitally’s oil and gas factoring makes sense if you have strong relationships with creditworthy clients but struggle with extended payment cycles. It’s particularly valuable during industry growth periods when you need to expand operations quickly, or if traditional banking relationships aren’t meeting your operational needs.
Getting Started
Capitally can establish facilities within a week, much faster than traditional lending processes. We understand the unique challenges oilfield services companies face and work with businesses throughout Alberta, as well as British Columbia and the Maritimes.
Ready to eliminate cash flow stress and unlock your growth potential? Contact Capitally today to learn how oil and gas factoring can provide the working capital solution your business needs to thrive in the energy sector.
