Frac Tank Financing

Frac tanks show up on location before the first stage pumps and stay until the last barrel of flowback fluid is handled. That makes them one of the most continuously deployed pieces of equipment in the completions and water management cycle. For rental companies that maintain a fleet of frac tanks for contract deployment, utilization drives the entire economics of the business, and a fleet size that cannot meet contract demand is a fleet that loses accounts to competitors who can field more iron.

Standard 500-barrel open-top frac tanks and the sealed 400-barrel DOT-style variants are the primary transaction in our frac tank portfolio. Prices for used units in serviceable condition run from approximately $8,000 to $20,000 per tank in most markets, with newer or larger tanks reaching higher. At those per-unit prices, frac tank financing almost always involves multiple units, typically ten to thirty tanks or more in a single transaction, which moves the deal comfortably into the $100,000 to $400,000 range where our programs are most competitive.

We work primarily with oilfield rental companies that are growing their frac tank fleets, as well as with operators and water hauling companies that prefer to own rather than rent the storage they use for frac water and flowback management.

How multi-unit frac tank financing works

Frac tank deals are structured as multi-unit packages because the per-unit price is too low for individual financing to make economic sense. A package of 20 tanks at $15,000 each is a $300,000 transaction that works well under an short-form approval, funds in one to two weeks, and spreads the payment across 36 to 60 months into a manageable monthly obligation against the rental income the fleet generates.

We size the transaction against what the fleet will earn. A 20-tank fleet on active deployment at $100 to $150 per day per tank in the Permian generates a meaningful monthly revenue stream. The financing payment sits well below that revenue total, which is exactly the structure lenders want to see. If you can demonstrate the contracts or rental agreements that will deploy the tanks, the application becomes even more straightforward.

Used frac tank purchases are the majority of what we finance. New tanks are available from domestic manufacturers and offer the longest service life, but the economics of rental fleet building often favor purchasing used units at lower per-tank cost and operating them through several rental cycles before retirement. We finance both new and used configurations without preference, as long as the condition is documented.

Private party tank purchases, auctions, and dealer transactions are all eligible for financing through us. For large auction purchases where you are buying 30 or 40 tanks in a single lot, we can coordinate the financing timeline with the auction house's payment requirements. Used equipment financing on frac tanks at volume is a transaction we handle routinely.

Who typically finances frac tanks through us

Rental fleet operators building or expanding their frac tank inventory are the core buyer. These companies operate in active basins, maintain cleaning and refurbishment programs to keep tanks in rental-ready condition, and track utilization rates carefully because every day a tank sits in a yard is a day it is not earning. Financing that keeps cash in the business rather than spent upfront on tank purchases is the difference between adding accounts and watching competitors take them.

Operators with completions programs who want to own their flowback and temporary storage infrastructure rather than rent it represent a second buyer type. Owning 20 to 40 tanks on a completion-heavy schedule eliminates the variable cost of daily tank rental across multiple wells per year. The financing payment becomes a fixed cost that can be budgeted precisely.

Produced water management contractors who use frac tanks as temporary storage before transfer to disposal or recycling also finance tanks through us. These operators often work alongside saltwater disposal companies and need portable tank inventory to handle surge volumes that exceed fixed-site storage capacity.

Refinancing or cashing out equity in an existing frac tank fleet

A frac tank fleet that has been paid off or substantially paid down represents collateral that can be converted to working capital. An equipment sale-leaseback on a clear-titled fleet of 30 to 50 tanks generates cash at closing that can fund additional tank acquisitions, cover operating expenses, or provide capital for other business needs. The fleet continues earning rental income, and the sale-leaseback payment is a fixed monthly cost against that revenue.

Refinancing an existing fleet loan to lower the rate or extend the term is also available. If you financed tanks two or three years ago under less favorable terms, a rate-reduction refinance can improve monthly cash flow without requiring a separate capital raise. We evaluate the current payoff against market value to determine whether a refinance makes economic sense before recommending it.

You may also want to review Bonus Depreciation Financing, and Fair Market Value (FMV) Lease.

Get financing for your frac tank fleet

Ten-tank starter packages to 50-tank fleet expansions. Tell us how many tanks, approximate age and condition, and the price. We will structure the deal around the rental economics and get you funded in one to two weeks.