Drilling Contractors

In the Permian, the DJ Basin, and the Williston, the contractors who put iron in the field fast are the ones getting the next call. A rig that sits because capital is tied up is a rig losing day rate. We finance drilling contractors from single-unit operators running one workover rig to multi-spread contract drillers fielding three or four rigs at a time, and we structure deals around the realities of this business: day-rate income that can swing quarter to quarter, equipment that gets heavy use, and capital needs that move at the same pace the basin does.

Our minimum is $50,000, the sweet spot is $100,000 to $150,000 and above, and we work with new and used equipment both. If your credit has taken a hit from a down cycle, B/C credit financing programs keep your options open. For straightforward purchases under around $400,000, short-form approval means less paperwork and faster closes. Add three months of bank statements and most files move to a decision in about a week.

Iron That Drilling Contractors Finance With Us

Land drilling rigs are the anchor asset, but drilling contractors carry a lot more iron than the rig itself. Land drilling rig financing covers the drawworks, the mast, the substructure, and the power skids as a package. Top drives add load at or above the rig cost on larger platforms; we finance those separately or as part of the full rig package through top drive financing. Mud systems are their own capital event: triplex mud pumps from NOV and Gardner Denver, the pits, and the solids-control equipment all get financed individually or as a system.

Beyond the rig: oilfield service trucks, gin pole trucks for rigging up and down, winch trucks, light towers, and generator sets all qualify. Used equipment is common in this segment, and we lend on used without requiring the machine to be dealer-certified. If the iron has a serial number and the operator can document its hours, we can work with it.

• Land rigs (single, double, triple) and rig components
• Top drives and kelly drives
• Triplex mud pumps and mud system components
• Drill collars, BHA tools (eligible as part of a larger transaction)
• Oilfield service trucks, winch trucks, gin poles
• Gensets and light towers for remote pad sites
• Blowout preventers and well-control equipment

How We Structure Deals for Drilling Contractors

Most drilling contractors come to us one of three ways: buying iron to staff a new contract, refinancing existing equipment to free up working capital, or doing a sale-leaseback on paid-off assets to recapitalize the business. Each path has different documentation and different structures.

New purchase: the vendor invoice or bill of sale is the anchor document. We advance against the purchase price directly to the seller. Terms on land rigs typically run 36 to 84 months depending on the asset age and your preference. Monthly payments are structured so the rig can carry the note on its day rate even if utilization dips to 70%.

Refinance: if you have existing loans that are eating cash flow, equipment refinancing can restructure the obligation, lower the payment, or pull the term out to improve monthly liquidity. We need the payoff statement from the current lender, a recent appraisal or fair-market comp, and three months of statements.

Sale-leaseback: drill contractors who own iron free and clear use sale-leaseback financing to pull equity out of the asset without selling it. The equipment stays in the field; the cash hits the account. Minimums apply, and the asset must be in active service or recently so.

What Drilling Contractors Are Dealing With Right Now

Rig counts move fast. A six-month up cycle can put contract drillers into a bidding war for qualified iron, and used rigs that were warehoused during the downturn come out of storage needing reconditioning spend before they go to work. Capital access at the right moment is the whole game. Operators in the Delaware Basin and the Midland Basin are running longer laterals, which puts more load on the rig and on the mud system. Contractors who can field purpose-spec equipment for long-lateral drilling take the work over operators running legacy iron that wasn't built for 12,000-foot horizontals.

The Appalachian basin, the Haynesville, and the Bakken each have their own activity cycles. Contractors working multiple basins need capital structures that can move assets across geographies without triggering early-payoff penalties or restructuring costs. We build that flexibility into deals when operators ask for it.

Credit and Documentation for Drilling Contractor Loans

Drilling contractor financials don't always look clean by traditional bank standards. Revenue is lumpy; a strong Q2 can follow a thin Q1 if a contract delayed its spud date. We read oilfield financials the way they're actually generated, not through a generic commercial-lending template. Recent operating statements and the asset details are enough to start most files. A full tax return package is required above certain thresholds, but we tell you exactly what's needed before you invest time gathering documents.

B/C credit is considered. Prior bankruptcies (discharged) are considered on a case-by-case basis. Startups and newer entities can access startup financing for equipment, though terms and advance rates differ from seasoned operators.

Get Your Drilling Equipment Financed

Tell us what iron you need and when you need it in the field. We'll put a structure together fast enough to matter. Call or submit your details online and expect a same-day response on most files.