Velocity Financial: Revolutionizing Cash Flow in Midland’s Oil and Gas Sector
Unlocking Financial Solutions with Factoring
A young Midland company is utilizing a financing method that dates back to ancient times to help clients generate cash flow. Oil industry veteran Tripp Wommack founded Velocity Financial in early 2019 as a factoring company to give clients financial flexibility. Factoring involves a company—in this case, Velocity—buying invoices from clients for a fee. Velocity will then collect the money owed on the invoices.
Bridging the Cash Flow Gap in Challenging Times
“There’s still a lot of people who don’t know factoring is still going on,” said Irene Hinojos, senior vice president of operations and compliance, in a phone interview. As the industry’s economic gloom has deepened, she said the business has received more inquiries as they seek to close what she called a cash flow gap. Typically, when an invoice is sent, the company has to wait up to 60 days to receive payment, she explained. “Expenses still happen,” she said. Instead of waiting 60 days – or longer – to sell their invoices to Velocity, she said, it gives them cash flow.
Preparing for Economic Shifts
In addition to factoring services, Velocity Financial proactively assists clients in navigating economic uncertainties, preparing them for potential credit declines or bankruptcies. Justin Ryan, Senior Vice President of Underwriting and Credit, highlights the company’s vigilance in monitoring the sector’s financial health.
A Strategic Partner in Financial Management
Velocity Financial stands out in the Midland oil and gas industry as a strategic partner, not just a service provider. By reviving and optimizing an age-old financing method, Velocity ensures that businesses can sustain operations, seize growth opportunities, and navigate the volatile economic landscape.
Among its other services, Velocity is helping clients prepare for economic changes. “We want to be prepared, and we want our clients to be prepared for any major changes, whether it’s declining credit or pending bankruptcies,” Hinojos said. Justin Ryan, senior vice president of underwriting and credit, said they have seen a few bankruptcies already. Any additional bankruptcies will “depend on how oil recovers.”
Bridging the Cash Flow Gap in Challenging Times
“There’s still a lot of people who don’t know factoring is still going on,” said Irene Hinojos, senior vice president of operations and compliance, in a phone interview. As the industry’s economic gloom has deepened, she said the business has received more inquiries as they seek to close what she called a cash flow gap. Typically, when an invoice is sent, the company has to wait up to 60 days to receive payment, she explained. “Expenses still happen,” she said. Instead of waiting 60 days – or longer – to sell their invoices to Velocity, she said, it gives them cash flow.
Preparing for Economic Shifts
In addition to factoring services, Velocity Financial proactively assists clients in navigating economic uncertainties, preparing them for potential credit declines or bankruptcies. Justin Ryan, Senior Vice President of Underwriting and Credit, highlights the company’s vigilance in monitoring the sector’s financial health.
A Strategic Partner in Financial Management
Velocity Financial stands out in the Midland oil and gas industry as a strategic partner, not just a service provider. By reviving and optimizing an age-old financing method, Velocity ensures that businesses can sustain operations, seize growth opportunities, and navigate the volatile economic landscape.
Among its other services, Velocity is helping clients prepare for economic changes. “We want to be prepared, and we want our clients to be prepared for any major changes, whether it’s declining credit or pending bankruptcies,” Hinojos said. Justin Ryan, senior vice president of underwriting and credit, said they have seen a few bankruptcies already. Any additional bankruptcies will “depend on how oil recovers.”
