The oilfield services business is burdened with a point of sale to cash collection process that may be the longest, most complicated and expensive in the world. You make the sale, you bear all the costs up front, then wait to get paid for 30, 60, 90 days or longer. Remember, in many businesses the vendor is paid before the product or service is even delivered! in oilfield services, the entire industry has higher internal finance costs built into its prices than most. Many businesses operate on cash or cash equivalent at the point of sale and therefore assume no customer credit risk or financing costs on receivables whatsoever.
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