Invoice Factoring Helps Push Canada’s Oil Boom

“It’s exciting to be involved in the oil and gas exploration industry that is such an economic boom for Alberta and Saskatchewan,” said Glen Miles Senior VP, Business Development Canada, at the 2014 Lloydminster Heavy Oil Show last week (September 10, 2014). “We have seen a huge demand for our oilfield capital services in Canada, and as oil exploration continues to grow through new technologies, our customers in Alberta, Saskatchewan, British Columbia, and Manitoba are facing many new challenges, especially on the side of cash flow. Today, 30 to 90-day pay terms are common. These long pay terms make it difficult for oilfield service companies to meet their working capital needs. Working capital lines from TCI Oilfield Factoring address these challenges by not only maximizing cash flow, but also by greatly reducing the Accounts Receivable turn through increased efficiency in the billing process.”

Cash flow is particularly important in resource development.  While selling oil is always profitable, broadly speaking, pulling it out of the ground is extremely capital intensive.  Slow payments can cripple extraction projects, particularly in difficult extraction environments, like Northern Canada.

“At TCI Oilfield Factoring, we’ve built a reputation for being the oilfield experts,” said Miles. “With many factoring relationships spanning years, we’re happy to share not only our experience, but also our insights into the successes that our clients have enjoyed with the improved cash flow that TCI Oilfield Factoring provides.”