Factoring’s benefits shine when considering how turning receivables into cash helps businesses meet financial growth challenges. Recently, TXP Capital provided factoring facilities to three energy companies facing different and unique funding challenges. While one client had to find a new funding partner that understood the oil and gas industry and could navigate SBA lending issues, another client had an influx of customer concentration and struggled to get the level of capital it needed. Last, a third client was a startup with no credit history. TXP Capital provided funding based on the client’s industry experience and relationships to help in the early and crucial stages of business formation.
Through its intimate understanding of the oil and gas industry and commitment to supporting energy companies at all stages of growth, TXP Capital provided the working capital needed for these companies to continue growth without the hurdles of traditional borrowing.
Let’s explore those challenges and how TXP Capital can help.
Client #1: An Established Energy Services Company
Facility: $2M Factoring Facility
The Problem: TXP Capital was referred to an established energy service company through an industry competitor. Unfortunately, the client was forced to seek a new funding partner because the funding partner they were using became cautious about the risks associated with the energy sector.
The client was forced to find a new funding partner and needed to do it fast.
In particular, the client didn’t just need capital. They needed capital from a funding provider that understood the oil and gas industry. Moreover, the partner would need to understand the complex ownership structure of the business and work through issues surrounding SBA lending.
The Solution: After detailed discussions, the client chose TXP Capital as their funding partner. The reason is simple:
Company History: TXP Capital is uniquely positioned in the oil and gas industry and has provided attractive financial services to companies in the sector.
Bank Affiliations: TXP Capital is not part of any traditional bank, allowing us to move forward with funding deals that some banks might consider too risky for bank-backed factoring.
Underwriting: TXP Capital worked through the complex ownership structure and overcame SBA-related issues to get the client funded.
The Outcome: TXP Capital’s dedication to the energy service sector, and willingness to assist businesses to access working capital when banks can’t, helps clients access the capital they need to continue forward with their business.
This is just one example of how TXP Capital fills a void in the market to help companies in the energy sector make it through some of the most challenging stages of company growth.
Client #2: A Rapidly-Growing Energy Services Company
Facility: $8M Factoring Facility
The Problem: The client is an energy services company experiencing rapid growth. The problem was that they were dependent on an extremely high customer concentration, resulting in a need for a significant amount of capital. Unfortunately, other funding providers weren’t willing to provide the needed capital to the company because of its high customer concentration.
The Solution: TXP Capital’s unique understanding of the oil and gas industry and the operators within the industry made it possible for TXP Capital to offer the credit line this client needed for continued growth.
The Outcome: TXP Capital and this client have formed a meaningful relationship that results in the client’s access to the capital they need. This is a perfect example of how the best funding partners need to have a wide range of intangible benefits, like a willingness to help through growing pains other funding providers simply won’t.
Client #3: A Start-Up Energy Services Company
Facility: $500M Factoring Facility
The Problem: This client was a startup in the oil field service industry. However, as a startup, the client experienced significant constraints due to cash flow issues.
Through extensive industry experience, the client had built meaningful relationships and decided it was time for him to build his own company rather than maintain the nine-to-five schedule for someone else.
Unfortunately, the company was new and had no credit history. As a result, they couldn’t access the funding they needed through traditional means. Without a significant cash injection, this client’s dream of building his own company wouldn’t have come to fruition.
The Solution: TXP Capital has extensive experience working with energy companies in all stages of growth. We understand that building a company is difficult work and that financial hurdles will arise—but accessing cash shouldn’t be a deterrent.
At TXP Capital, we’re committed to supporting startups in the oil and gas industry—and that commitment proved to be just what this client needed.
Rather than focusing on the years in business and credit score, TXP Capital was able to underwrite this facility using the client’s industry experience and relationships he’d built along the way. Today, the relationship between TXP Capital and this client continues as we help him address equipment financing and other needs.
The Outcome: This client was able to access the working capital he needed to continue building and growing his company. Today, with the help of TXP Capital, this client has all the resources he needs to continue expanding his already flourishing business.
Let TXP Capital Solve Your Unique Funding Situation
Contact TXP Capital today to find out how we can help fund your business with the money you need to solve immediate financial challenges while exploring and implementing new business strategies.
