Wednesday, March 12, 2014

An Assessment Of Oil Field Collections

By Jaclyn Hurley

The growth in the world population has put enormous pressure on the energy sector. The ever increasing prices of the oil products mean that the firms have to supply more. The available resources can hardly accommodate the current growth in industries and the populations. The costs incurred in supplying these products are neutralized by increasing the sales. As more and more products are sold on credit terms, there is a need for oil field collections and related systems.

The forces of demand and supply control the various aspects of the energy markets. The increase in demand has to be contained by raising the amounts of supplies. This shifts the balance of the demand-supply curves such that a balance is maintained. Increase in supplies means that more costs are incurred in the process of supplying the needed amounts. Sales have to be high to make up for the costs incurred.

There exists a chain of relationships between the producers, suppliers and the consumers. This means that the relationships have to be stable for good businesses. In most cases, the relationships are guided by the mutual trust and accountability. Goods may be delivered at the premises of the customers by the suppliers. The mode of payments is organized soon after the delivery of such goods. The credit trading is very common in mature business relationships.

Financial evaluations may be required in new business relationships. This is done based on the documents that have been available by the different players in the markets. The financial documents are used as basis of evaluating the credit worthiness of the new customers. The assessments help the businesses in making various decisions relating to credits. Thus helps in the reduction of losses associated with bad debts.

If the firms in questions are servicing a loan or another unsettled debt, then they cannot access to credit services. Current obligations are assessed from the financial documents which are shared between the different organizations. These records are mined from the financial databases run and maintained by financial service providers. The credit services are deferred to later dates especially after the obligations have been settled.

The customer and the supplier usually use the lawyers to negotiate the various trading terms. The business and corporate lawyers enter into contracts on their behalf. The contracts are legally acceptable to both parties. If any of the parties falls short of the expectations, they may get fined or the contract is terminated.

The term of the credit could be divided into smaller terms. Payments are then made in each of these periods. The agreed payments are made depending on the agreements. The clients make the payments and then the collection agent appointed collects the amounts due. Other obligations are shared according to the agreements.

The contract terms specifies the course of action that needs to be initiated if the credit terms are violated. Where a default of the payments occurs for a specific period of time, the sellers may sue their clients. The clients are forced to pay up all the amounts due. Any costs incurred in the process may need to be reimbursed.

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