Factoring for oilfield service companies: keep crews and equipment working on net 30 to 90.
Most oil and gas customers pay in 30 to 90 days, and they expect those terms. Payroll, fuel and equipment maintenance can't wait that long. Factoring turns invoices to creditworthy customers into cash, and the line can grow with your sales.
Daniel Chirino · Business Development Officer, 1st Commercial Credit
Updated: October 28, 2026
Why oilfield companies run short of cash
- Long jobs drain cash before you can even invoice.
- Payroll and operating costs are hardest to cover in high-demand periods.
- Equipment has to be bought or repaired now.
- Larger contracts are out of reach without more working capital.
Smaller service companies often don't plan for 30 to 90 day terms until the bills pile up. Bank loans usually ask for excellent personal credit, significant collateral and weeks or months of paperwork. Factoring skips that: you're selling invoices you already earned, and what counts is your customers' credit.
How factoring works for an oilfield company
Invoice the work
Invoice your customer for completed work, with clear payment terms and the backup it needs.
Get an advance
1st Commercial Credit advances a portion of the invoice so you can cover payroll, fuel and equipment.
Get the rest
When your customer pays the invoice in full, you receive the remaining balance minus the fee.
What 1st Commercial Credit offers oilfield companies
The offer
- Rates from 0.69% to 1.59%, depending on your monthly volume, the size of each invoice, your customers' credit and how long they take to pay.
- From about $10,000 a month in sales up to $10 million in receivables.
- Initial setup in 3 to 5 days, with same-day decisions.
- No financial statements required. Low credit scores accepted.
- No upfront, hidden, facility, audit or invoice minimum fees.
- Purchase order financing and supply chain finance are also available.
The 5 requirements
- Customers with good credit. This matters most.
- Invoices free of liens.
- Good invoicing: clear payment terms and full backup.
- Tax issues, if any, that are manageable and can be solved with the financing.
- No open bankruptcies for the company or its main owners. Past ones must be discharged.
1st Commercial Credit works with oil and gas exploration service providers and field equipment suppliers: seismic survey and geophysical operators, makers of drilling fluids, drill rigs, lifts, geophysical prospecting equipment, pipes, pumps, production tools, valves and wellheads, plus oilfield transport and logistics, pipeline construction and maintenance companies.
Source: 1st Commercial Credit's oilfield page, read October 28, 2026. Rates and terms are confirmed in writing before you sign.
When factoring is not the answer for an oilfield company
- Your customers pay in under 15 days.
- Your invoices are already pledged to another lender. They have to be free of liens.
- The company or a main owner has an open bankruptcy.
- The problem is margin, not timing. If a job loses money, getting paid faster only loses it faster.
Questions oilfield companies ask me
Do I need good personal or business credit?
No. Factoring looks at the credit of your customers, the ones who pay the invoices. Low credit scores are accepted.
I have tax problems. Can I still qualify?
It can work, as long as the tax issues are manageable and the financing helps solve them.
Is it a long-term commitment?
It can be short or long term. Many companies use it during growth or a cash crunch, and some keep it as a regular tool.
Can the line grow with my business?
Yes. If your customers have good credit, the line can grow along with your sales.
Who pays your invoices?
Tell me which operators or companies you work for and how long they take to pay. I'll tell you if factoring makes sense for you.
Also read: how invoice factoring works · trucking · manufacturing