The Platts Conference called out what many in oil and gas industry have known for some time now, that traditional oil and gas loans are insufficient to meet demand
Redondo Beach, CA (PRWEB) December 11, 2014
Business Factors & Finance, an invoice factoring company that specializes in freight & oil and gas factoring services across the nation, has earmarked funds for oil and gas financing in direct response to the recent Platts Pipeline Development and Expansion Conference held in Houston this last quarter.
At length, industry experts spoke about the lack of infrastructure, pipelines and transportation vessels that are needed to properly procure and excavate shale oil and gas deposits. The dearth of oil and gas project financing and funding for transportation has these development projects sitting and stagnating.
Unlike other more straight-forward industries, the conference speakers acknowledged the difficulties associated with oil and gas loans. An inherent financial risk is associated oil and gas excavation (that the returns of the digging will be less than expected) and this makes some traditional financing companies reluctant to enter that financing space.
Moreover, environmental regulations, eminent domain laws, and state and local politics can make the financing of these oil and gas projects a cumbersome and time consuming endeavor requiring great patience. From drillers, truckers, roustabouts and engineers, many disparate groups must cooperatively come together for a successful drill.
“The Platts Conference called out what many in oil and gas industry have known for some time now, that traditional oil and gas loans are insufficient to meet demand,” says Robert Bernfeld, President of Business Factors & Finance. “As a result, Business Factors & Finance is setting aside capital to be used for ongoing financing of oil and gas projects for 2015. As a 40-year-old invoice factoring company, we are comfortable taking on risks associated with the oil and gas marketplace and the hurry-up-and-wait pace of the industry.”
Platts is a worldwide provider of energy, petrochemicals, and commodities information for more than 100 years.
About us: With its financial depth in factoring services, Business Factors & Finance relishes in its role of providing financing to companies that demand more flexibility than traditional financing institutions are able to give. It specializes in oil and gas, transportation and freight bill factoring and more to high risk, boom-or-bust industries as par for the course.