Compare Capital Solutions' Oilfield Services and Traditional Factoring
| Important Issue/Variable | Factoring 1 | Capital Solutions' Oilfield Services |
|---|---|---|
| Type of contract | Annual/biannual | Open (you can leave anytime) |
| Early termination penalties | Yes | None, zero |
| Line size | Limits set annually | Only limited by amount of invoices you run through us |
| Collections | Factor does them (usually heavy-handed) | You continue doing them as you do today |
| Statements to your customers | Factor sends | Never sends |
| Invoices to your customers | Factor sends | You send |
| Which invoices to have funded | Factor usually requires all | You decide according to your needs |
| Which customers to have funded | Factor usually requires all | You decide according to your needs |
| Fees | Multi-layered, difficult to predict and verify; many Factors still charge a fixed/flat rate which is VERY expensive | Single layer, directly proportional to time; very straight forward and easy to verify |
| Minimum monthly fees | Yes | Never |
| Invoice notation fee | Yes 2 | Never |
| Sign-up fees | Usually $1,500 non-refundable | $350 totally refundable when you leave the relationship |
| Who you deal with, contact person | Clerical person | Start off with our CEO, then Operations Manager. Always someone with a brain. |
| Personal guaranty | Always | No |
| Can you call lender's references? | Rarely | Always |
| Diversification | Maximum concentration is usually 25% to 30% | Is rarely an issue for us |
| Your customer's credit limit | Factor establishes credit limit for each one of them | Rarely an issue |
| Submit tax returns | Quarterly | Never |
| Submit corporate financials | Yes, monthly | Never |
| Audits | Yes (and you pay for them) | Never |
| Does the lender provide reports? | Yes, but frequently varies; spotty | Yes, unlimited, so you have both full detail as well as broad information of your account; via fax or online 24/7 |
| Wire transfers | Usually $35 each | $15 each |
| Startup turnaround time | Usually 15 to 20 days | Usually 5 days, rarely over 10 days |
| Satisfaction guaranty | Never | YES! |
1 Of course, there are various ways in which Factors structure their deals. Here we detail what is most common in the factoring trade.
2 Factors often charge a penalty if you don't make the invoice out correctly.
Save money by dealing with the principal, not a broker. Find out how easy it is to qualify or contact us today and speak with one of our oilfield financing executives to see how we can help you make your oilfield-services business grow.
Hear what our oilfield clients sayWhat Our Clients Are Saying
- Keri Gray,The HUGE difference I found since we are working with you... is in the day-to-day life... Since Capital Solutions is funding us there is no "fear"... when I talk to a vendor or need to make payroll. You guys have also bent over backwards... to make it work for us. I really appreciate that.
Energy Services
- George Del Toro,We were funded [in 10 days] (the approval process was very smooth). The way I spend my time has changed dramatically since then. I can spend as much time as I need visiting with customers and out on the field... In closing I would like to tell you that Capital Solutions has made it possible for GDT Well Service, Inc. to triple (300%) its business in the last year, without any of the "growing pains".
GDT Well Service
- Brenda and Mark Neufeld,In our very first conversation I noticed that you not only understood our situation, but also the Oil & Gas trade. Capital Solutions has been an invaluable help... We have grown our business exponentially thanks to you. I can now probably qualify for a traditional line of credit (...but I'm not sure I want to).
B.N.M. Piloting Services