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Cash FlowGlossary Term

DSO (Days Sales Outstanding)

Related Terms

Firm Customers

Cash Flow

Clients committed to regular, ongoing work under standing agreements or master service contracts. For subcontractors, firm customers provide predictable scheduling and steady revenue. They reduce reliance on spot work and help justify keeping crews and equipment mobilised.

Capacity Charges

Cash Flow

Fees paid to reserve a subcontractor's workforce or equipment availability, regardless of actual utilisation. Clients use these to secure priority access during peak demand periods. For subcontractors, they provide predictable revenue even during standby phases.

Unit Rate

Cash Flow

A pricing model where work is billed per unit completed (per meter drilled, per cubic meter hauled, per joint welded, etc.).

Adjusted Ebitda (earnings Before Interest, Taxes, Depreciation and Amortisation)

Cash Flow

A profitability measure that strips out non-cash costs and one-time charges, showing true operational earnings. For subcontractors, it reveals how much cash your field operations actually generate. Clients and lenders use it to assess your financial health before awarding contracts or extending credit.

Tolling Agreement

Cash Flow

A contract where a subcontractor processes or treats a client's raw material using your equipment or facility, without taking ownership of it. You charge a fee for the service rather than buying and reselling the material. Common in midstream and processing work, it directly affects how you invoice and recognise revenue.

Principal Forgiveness

Cash Flow

When a lender cancels part of the original loan balance owed by a subcontractor or field service company. This reduces total debt obligations, improving cash flow for ongoing operations. It differs from interest relief, as it directly lowers the core amount borrowed.

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