FieldNews
Subscribe

Daily oil & gas and construction news for subcontractors

Cash FlowGlossary Term

Expansion Capital

Funds raised or borrowed to grow a subcontracting business beyond its current capacity. This covers new equipment, additional crews, or entry into new service markets. It differs from operating capital, which keeps day-to-day work running.

Related Terms

Project Financing

Cash Flow

A funding structure where a specific project secures its own debt and equity, separate from the sponsor's balance sheet. For subcontractors, payment depends heavily on the project's cash flow rather than the owner's overall finances. This increases payment risk, making it critical to review contract terms and security provisions carefully.

Consignment Inventory

Cash Flow

Materials or equipment stored at your job site but owned by the supplier until you use them. You only pay when items are consumed, reducing upfront capital tied up on remote projects. Common for frequently used consumables like fittings, gaskets, and PPE on long-duration field contracts.

DSO (Days Sales Outstanding)

Cash Flow

The average number of days it takes to collect payment after a sale. For field service companies, DSO measures how long between completing work and receiving payment. Industry benchmarks range from 30-60 days.

Fuel Cost Escalator

Cash Flow

A contract clause that adjusts your billing rate when diesel or fuel prices shift beyond a set threshold. It protects subcontractors from absorbing sudden fuel cost spikes on long-term or remote field assignments. Negotiate the trigger percentage and index reference before signing.

Backlog

Cash Flow

The total value of contracted work that has been awarded but not yet completed. A healthy backlog signals steady upcoming revenue and helps subcontractors plan crew deployment and equipment needs. Thin backlogs often signal the need to ramp up bidding activity.

Heating Oil Futures

Cash Flow

Contracts locking in future heating oil prices, traded on commodity markets. Subcontractors use these trends to forecast fuel-related operating costs on remote or winter job sites. Rising futures signal higher equipment heating and site fuel expenses ahead.

Stay sharp on field operations

Industry news and insights, delivered to your inbox.

Subscribe to FieldNews
A community project byAimsio