Invoice Factoring in Oklahoma


Oklahoma Invoice Factoring

Small businesses are vital to Oklahoma’s economy. With roughly 436,867 small businesses in the Sooner State, this economic segment employs almost seven-hundred thousand people (or 52.8%) of all Oklahoma workers).1 But anyone that has ever owned a small business knows how tough it can be.

It’s often poor cash flow management that gets businesses into trouble. While many would enjoy up-front payment, the reality is that smaller companies need to offer credit sales to bring in larger accounts. Many business owners begrudgingly wait 30, 60 or even 90 days for payment. Operating in certain industries such as trucking, manufacturing, construction, and oil and gas present particular challenges.

Trucking and transportation companies are plentiful in the state of Oklahoma, given their centralized location. But these companies often don’t get paid until they can deliver their loads, causing them to scramble to maintain their vehicles and miss new business opportunities. Many are in dire need of immediate funding.

And the oil and gas industries have their footprint all over Oklahoma. In fact, there were four Fortune 500 companies headquartered in Oklahoma all energy related (Williams, Devon Energy, Chesapeake and OGE Energy Corporation).2 But the ‘boom or bust’ nature of the oil business makes relying on prompt payments by clients nearly impossible.

Oklahoma invoice factoring may be the solution. And by taking advantage of non recourse factoring, your business can transfer a portion of the payment risk onto a third party. You will pay more for this, but it may be a good risk management policy, especially if you have a highly concentrated customer base.

If your startup or small business needs capital immediately, invoice factoring in Oklahoma may be the answer. Factoring invoices can provide the cash flow many small businesses need to make payroll, pay down existing debt or capitalize on a supplier discount by placing a large inventory order.

Invoice Factoring Companies in Oklahoma

The majority of factors in the region are located in Texas, but there are still plenty of invoice factoring companies, known as factors, in Oklahoma. Here’s a quick introduction if you’re wondering how invoice factoring works. Factors are third parties who purchase the rights to collect the outstanding invoices (B2B) from your customers. The factoring company advances your business a percentage of the invoice’s face value, generally 75-90% depending on the creditworthiness of the account debtor, which the factor assesses. They retain the rest basically as a cushion.

Once the customer pays the accounts receivable, the factor refunds the remaining balance minus a factoring fee which usually runs between 1-3%. In essence, they help unlock the cash tied up in unpaid receivables, providing your liquidity to your small business to help run the day-to-day operations.

While we generally recommend invoice factoring companies headquartered in the same state as your small business, it’s more important that they specialize in your industry. Many industries require a level of knowledge and expertise to be effective.

You wouldn’t want to choose a factoring company that specializes in California retail to be factoring receivables for a trucking company in the Rust Belt states like Ohio and Michigan. Freight factoring customers expect a number of perks when signing on such as fuel cards and load boards- items that an outside factoring company simply cannot provide without being in the industry. Some factors, like Apex Factoring, even help new entrepreneurs start their own trucking business.

Here are a few accounts receivable factoring companies located in Oklahoma:

  • TBS Factoring Service (Oklahoma City)
  • Legacy Bank (Oklahoma City)

This is just a sample of invoice factoring companies in Oklahoma. There are plenty of other invoice financing firms that can help your small business with cash flow problems and negative net working capital.

A good financing partner can provide your business with immediate funding through factoring but can also adjust their offerings as your business matures over time. Once a relationship has been established, a small business may have access to different options such as asset based lending or a revolving credit lines.

While used interchangeably, ‘factoring’ and ‘financing’ are actually different. For example, Bluevine actually purchases the outstanding invoices where Fundbox advances capital based off of the face value.

If you are interested in a free, no obligation quote of factoring rates, just provide us with some basic information on your business- official company name, the average size of monthly receivables and a list of some of your larger credit customers. We would be honored to assist your small business in its small business funding needs.