If you are a local, regional, national or international oil producer, production facility, refinery or on the transport side of the business. The process of managing, updating, repairing and replacing your dated equipment is always part of most management discussions. When rates are low and business is booming there is a natural desire to pay cash for any new equipment needed or a refresh of the entire fleet. At Equipment Leases Inc. we have worked with clients when oil was $25/bbl during the pandemic and now as demand is outweighing supply and oil is over $65/bbl. we continue to work with those same companies that like you never stand down or fold up, they find a way to adapt and in some cases innovate. We have millions to lend in this environment and institutional investors wiling to write big checks with favorable terms to the right companies. Whether you are large or small, local or international give us a chance to earn your business. We will both be glad you did!
Oil and gas equipment is often prohibitively expensive. That’s especially true for small-to-medium-sized businesses. If you buy it with cash, you have to part with a whole lot of it, which means that you end up with less working capital. If you take out a loan, you put your credit rating at risk and pay far more for your equipment because of interest charges and other fees.
An Oil services client in Colorado needed $5,000,000 to purchase six used work-over rigs at auction for a great price and required us to provide financing for them. The rigs varied in years between 1988 up to 2012. We could expedite the lease approval process and provided a 60 term Capital Lease structure and a great rate. The auction house required the buyer have their money to the Auction house in less than three weeks, so it was a scramble from start to finish, but we were able to finance 100% of the equipment with “no money down” from the client who was naturally thrilled with the results. Banks will traditionally NOT fund used equipment. The appraisal or book value compared to the auction price worked out, and we got the deal funded.