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Financial Tools

Enterprise Financial / Hazard Risk Management

Commercial Insurance and Financial Solutions for

Oil and Gas Upstream - Midstream - Downstream and

All Industry Related Support Companies.


Equipment Finance and Leasing:
Equipment used in the E & P, Well Servicing/Completion and Pipeline Construction/Maintenance is often prohibitively expensive. If you buy it with cash, you have to part with a whole lot of it, which means that you end up with less working capital.

Given growing equipment demand, many business owners in the Upstream and Midstream Oil & Gas Industry find that equipment financing and leasing is a key acquisition strategy.

Have you considered a Sale-Leaseback of the equipment you already own?

If you already own a piece of equipment used in your operation that is unencumbered you could consider selling it and leasing it back.

Businesses ranging from small sole proprietors to Fortune 100 Companies finance/lease their equipment because of access to a wide range of benefits.

  • Get 100% Financing With No Down Payment
  • Maintain Working Capital/Cash Flow
  • Manage Risk
  • Hedge Against Inflation
  • Plan Expenses For Cash Flow And Business Cycle Fluctuations
  • Keep Equipment Up To Date with Newest/Latest /Technology
  • Address Tax Considerations
  • Leverage Equipment Knowledge/Expertise
  • Get No-Hassle Equipment Disposal

Accounts Receivable Management

Most subcontractors in the oil and gas industry have enjoyed a number of good years.

What will the future bring?

Many large oil and gas clients have grown more conservative in their expenditures and have started to take longer to pay their invoices. 

Companies that paid in 30 days are now paying in net 45. Those that used to pay in net 45 days are now paying in net 60 days. This has created a challenge for many service providers, who don't always have the resources to wait a long time to get paid.

There is a solution that has been gaining interest in recent years that is designed specifically to fix the cash flow problems created by slow paying invoices. It enables businesses to get quick payment for their invoices, providing the needed funds to meet current expenses and fund new growth investments.

This financial strategy that has long been used by multi-national firms and others is Factoring.

Factoring works as a financial intermediary that buys your invoices at a small discount (similar to a credit card discount) and pays you upfront for them.

This gives your company the funds it needs to operate and invest while the factoring company holds the invoice until the customer pays. Once the customer pays, on their usual schedule, the transaction is settled (for a small fee - similar to a credit card fee).

A key feature of factoring is that your customer does not have to pay sooner...they pay on their usual terms.

Qualifying for Factoring is relatively easy.

The bigest requirement is that your company needs to work with credit worthy customers. Most of the operators in the oil and gas industry have stellar credit, so this should not be a problem.

Additionally this financing facility includes as part of the process, Trade Credit Insurance at no additional cost.

Please also see Trade Credit Insurance explained in our Insurance Tools section. 

R A Moore Consultants Brochure PDF