Financing the US Oil Boom

by Crestmark 22. May 2013 10:59

Although scientists have known about the presence of crude oil in North Dakota for decades, it wasn't until 2008 that technology made it possible to extract oil from the rocks of Bakken shale. Now, with fracking, North Dakota is home 200 active oil rigs, and it produces around 20 million barrels of oil each month.

oil financing

This oil boom is a tremendous boost to the economy. While other parts of the nation have suffered through a recession, North Dakota has enjoyed the lowest unemployment rate in the country. The population of some small towns has doubled in recent years due to the influx of workers for the oil fields. The benefits of the Bakken shale oil fields have spread to other areas of the United States and Canada as well.

While the huge increase in oil production is great for the economy, it would not be possible without access to working capital to support the growth. Crestmark is proud to partner with companies in the oil & gas industry to provide financing solutions to support their businesses. Capital is often needed for pipeline expansion, refineries, staffing, trucking, machinery, temporary housing and many other things. Through a variety of lending options, Crestmark is able to offer flexible financing to help continue the growth in North Dakota and throughout the United States.

As the oil industry grows, it provides a trickle-down effect that strengthens the local economy as well. More workers moving to the area creates a new demand for restaurants and supermarkets, car dealerships, and many other services.

All of these new businesses also require access to working capital to get up and running. Not only is Crestmark equipped to handle to financing needs of large oil & gas companies, but we are also a strong partner to small businesses, offering SBA loans alongside our asset-based lending, accounts receivable financing, and factoring programs.

To speak with a lending expert, give us a call at 888.999.8050 or fill out our online contact form.

 

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Industry Financing

Is It Important To Find A Finance Company That Specializes In Your Industry?

by Crestmark 23. May 2012 12:19

Are all factoring companies equally capable of financing every deal? From the perspective of someone seeking credit for your business, it can be tempting to knock on the door of every bank and non-traditional lender in your area and online. But is it really better to work with anyone who will give you the kind of loan you need?

Your Field Is Unique

Immersed in the daily reality of life in your industry, it's easy to lose perspective on just how unique your business really is. The flow of revenue for the transportation industry – punctuated by delays, spiking gas prices, and lag time between payments – is very different from the expected pattern in a staffing agency, which in turn is different from a retail business. Because non-traditional lenders are often relying on these patterns to provide financing, it's vital that they have an understanding of what to expect. Your explanations may not tell them what they need to know.

A Specialized Company Has Custom Solutions Ready To Go

Many fields have developed specific lending practices that are unique within that industry. For example, trucking has freight bill financing and fuel cards. Government contract financing has to understand the additional paperwork and disclosure requirements that are necessary when working with federal or state organizations. A company that has worked with your field before knows what to expect and has already created unique solutions that are designed specifically to meet your needs. You just won't find that level of service in factoring companies that don't know your business.

Crestmark has always been proud of our customized offerings for fields like staffing, manufacturing, transportation, apparel, and government contracting. Even when we don't have prior experience in your field (a rarity considering the diversity of our staff and years of lending across industries) we know the questions to ask in order to provide you with the right non-traditional lending tools for your needs. 

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Freight Bill Financing: A Custom Solution For The Transportation Industry

by Crestmark 16. May 2012 05:35

Trucking is a unique industry because your product is moving the products of others. You move the country, ensuring that everything from food to clothing to furniture to mail reaches its destination on time. Because you fill such a unique and vital position within the economy, your business structure and revenue stream is sharply different from other companies. Freight bill financing is a unique concept, designed for trucking companies and used by many of the biggest transportation companies in the nation.

What Is Freight Bill Financing?

Although similar to accounts receivable financing or factoring, freight bill factoring is custom tailored for transportation. Once your freight bill is ready, you are eligible for financing based off of it. A non-traditional lender and transportation specialist like Crestmark will purchase the bill from you, paying you a portion of it immediately. Once the account clears with your client, you get the rest minus an administrative fee. Freight bill factoring can be traditional or discount depending on your needs.

Why It Works

You know how volatile the transportation industry can be. There's often a lag time between invoice and receipt of payment. In addition, shifting conditions like gas prices and unavoidable delays from weather can lead to a dramatically variable revenue stream. Financing can help smooth out the operation, ensuring that you have the cash you need when you need it. 

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