“We haven’t seen an industry specific factoring boom like this since 2005. These businesses have their accounts receivables tied up in long payment terms once their services have been rendered. They need immediate cash flow solutions.” - Kyle Bergstedt
(PRWEB) April 08, 2013
Many businesses make up the infrastructure involved with extracting and producing oil. The oil boom areas of North Dakota and East Texas are creating a massive number of jobs and spawning small business generation which reminds economy experts of the dot com boom.
To prove the point, the U.S. Small Business Administration has named the CEO of a mechanical engineering company from Bismarck, North Dakota the 2012 Small Business Person of the Year.
The company has over a decade of experience in operating one of the largest full service mechanical construction companies in North Dakota. The company has grown at an average rate of 20% annually crediting the owner with a strong commitment to solid product delivery, growth strategies and financial stability.
This business is a certified woman owned business and the only woman owned mechanical construction company in the state of North Dakota.
Often businesses like this are strapped for cash even though they have huge receivables. This challenge doesn’t affect just the large oil companies, but the cash flow problem rolls downhill to the many small businesses supporting this industry, including:
Explorers & Developers
Well Stimulation Services
As Kyle Bergstedt, President of Universal Funding says, “We haven’t seen an industry specific factoring boom like this since 2005. These businesses have their accounts receivables tied up in long payment terms once their services have been rendered. They need immediate cash flow solutions.”
Universal Funding provides factoring solutions to many of these small and medium sized businesses based on their accounts receivables and are familiar with the issues facing companies that are service providers in the oil fields.
In the past, companies needing to stabilize their cash flow were forced to approach banks or private lenders for loans. These lenders in turn looked to the company’s hard assets for collateral. And all too often the loans were turned down or came with exorbitant fees.
Factoring invoices can be done quickly without assuming debt or a line of credit because it uses the company’s assets, which make for a great financing alternative.
Since 1998, Universal Funding Corporation has provided clients in the oilfield & energy industry as well as those in the trucking & transportation, and staffing, printing, and manufacturing industries with personalized accounts receivable factoring services. The factoring company is based in Spokane, Washington and employs 22 people.