Capital Solutions Oilfield Services vs. Bank Line of Credit

Important Issue/Variable Bank Line of Credit Capital Solutions'
Oilfield Services
Ownership Company keeps Company keeps
Management Company keeps Company keeps
What lender looks at Previous two years' financials
Personal credit
Company's ability to produce invoices to credit-worthy customers
Decision taking contact person Credit committee. You often deal with a bank clerical administrator. No committees, person with "a brain" takes same-day decisions.
Cost $$ $$$
Personal guarantee Required Not required
Line growth Subject to credit committee, not easy No approval necessary
Who benefits from upside growth of company You do You do
Customize program to meet my business needs No Yes
Risk of your customers going Chapter 11 Your risk Capital Solutions' risk
Audits (your cost) Required, at least once a year, usually twice Not required
Satisfaction guarantee None Yes
Performance requirements Many: Financial, profitable, growth (if default occurs, your fees go up). Bank sometimes expects you to pay off the line once a year. None
Cost to exit program Usually early termination fees No cost, no questions asked

You save money by working with the principal instead of a broker. Contact us today to speak with our business financing executives, find out how easy it is to qualify and ask how we can help your oilfield services business grow.