Receivables factoring in Texas
Texas boasts the 10th largest economy in the world and has more major cities than any other state in the country. It has the largest supply of oil and gas deposits in the U.S. with over 8 billion barrels and almost 5 billion barrels of proven oil reserves in the Eagle Ford Shale and Permian Basin. Houston is the energy capital of the world with BP, CononcoPhillips and Marathon Oil having headquarters there. The state is also home to oilfield service providers Dresser, Haliburton and Schlumberger and large pipeline operators. Many Texas factoring companies offer accounts receivables factoring for oilfield service businesses.
Texas is also a major developer of computer and software technology, with Austin, Dallas and Houston hosting a number of large high-tech companies. Austin, also know as “Silicon Hills”, is home to Dell and major semiconductor design companies.
Dallas is home to the “Telecom Corridor” which is a center of innovation in communications and info tech. Dallas / Fort Worth is also home to several major defense contractors, such as Lockheed Martin, Bell Helicopter and Raytheon.
Oil and gas, technology, and defense are just a few of the industries that keep small businesses depending on accounts receivable factoring for healthy cash flow and smooth operations. One of the most difficult parts of running a business is securing funding. Invoice factoring is similar to a bank line of credit but much easier to qualify. You also get the many benefits of receivables factoring that banks don’t offer.
Invoice financing helps businesses avoid accounts receivable collections because you don’t have to wait weeks or months for payments from your customers. A Texas factoring company pays you immediately for newly generated invoices to your customers. You get cash upfront, so you can pay the operating costs that you incurred to generate the revenue. Waiting to collect your invoices is what your factoring company does, so you don’t have to.
Receivables factoring in Texas is fairly simple. The factoring company typically approves your factoring application within several business days. Often, you can get your first funding within 5 to 10 days, making invoice factoring a quick and easy process. This quick source of capital is extremely attractive to many of the oilfield service businesses that perform services for large contractors. Often, these smaller companies win a large contract and need to ramp up quickly or get left behind. The same goes for many of the service companies that serve big telecom companies.