Saturday, 15 March 2014

Evaluation Of Oil And Gas Debt Collection

By Jaclyn Hurley


Investments in the energy industry have been increasing for the last few years. This has been driven by the need to have more sources of energy. More and more firms are sinking their resources into research and development of renewable sources of energy. Some of the firms are also opting adopting better sales strategies so as to spur the growth in revenues. The use of credit and debt sales has been increasing. This has necessitated the adoption of oil and gas debt collection systems for collecting of overdue payments from customers.

A lot of funds are being sunk into the energy industry by both private and public investors. Most of the resources are aimed at resolving the crises surrounding the non-renewable energy options. The current oil wells around the world are being used up at an alarming rate. The reserves are running out of the important mineral at a very high rate. There is a need to replace this with other renewable options.

There is a need to replace the non-renewable sources with renewable options. This is what has transformed the research industry as more and more resources are being sunk for the development of better energy options. The firms in question have to adopt better sales strategies so as recover the funds that are sunk into the different projects. Most of them resort to heavy sales plans driven by heavy marketing operations.

Before a credit facility is extended to the clients, their financial status has to be taken into consideration. This is done by analyzing the current financial position. The financial records from their banks are carefully analyzed to establish whether they have sufficient amounts to settle the loans and credits in good time.

The sharing of information forms a very important in boosting the transparency within the industry. The information ensures that the customers settle their current obligations before the next credit or a loan is issued. This ensures that the customers with ongoing loans are not issued with a loan by other industry players. In such events, the credits are deferred to some later date.

Some businesses require that a contract is signed between the two parties before a credit is issued. The contract is sealed by the lawyers from both parties. There are various terms to this contract. In the event that some of the terms are not honored by the parties, the contract may require the parties to make good of any shortcomings.

The credit issued may be paid in a series of installments. The debtor and the creditor agree on a specific loan schedule. This specifies the amounts to be paid and the period of payments. Each of the two parties has different obligations. The client pays up the amounts being owed and the collection agencies collects the amounts in question.

In the events where the debtors continuously default on the payments, special legal processes may be initiated. This is done in accordance to the agreements in the contracts. In some cases, the debtors are used and forced to pay up the amounts in full. The costs incurred in the process are settled by the debtors.




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