Oil and Gas Equipment Financing: Rigs, Directional Drilling Tools, Pumps, Compressors and Trucks

Loans and leases for new and used oilfield equipment, from a single workover rig or MWD toolstring to a fleet, through lenders that know what the equipment is worth and how it earns.

Equipment we finance

If it goes to the wellsite or supports production, there is a lender for it. Equipment lenders in the network finance:

Drilling rigs, workover and well-service rigs, and rig-up trucks
Directional drilling equipment: mud motors, MWD and LWD tools, rotary steerable systems and downhole toolstrings
Pressure pumping, cementing, coiled tubing and wireline units
Mud pumps, generators, light towers and solids-control equipment
Compressors, pumping units, artificial lift, tank batteries, separators and treaters
Vapor recovery units, combustors and flaring-compliance equipment
Vacuum trucks, water haulers, hot oilers, winch trucks and crew trucks
Saltwater disposal pumps, gathering and water-transfer equipment

Loan or lease, new or used

A loan builds equity and lets you claim depreciation; a lease keeps the payment lower and the balance sheet lighter, with a buyout at the end. Financed equipment is still eligible for Section 179 and bonus depreciation in the year it is placed in service, so the tax decision and the financing decision can be made together. Used equipment is financed routinely, including private-party and auction purchases, when the make, model, age and condition support the value; lenders may want an inspection or appraisal on older or specialized units.

Sale-leaseback and equipment cash-out are also available: owned, unencumbered equipment can be refinanced to raise working capital without selling it, which is often the fastest capital a service company can reach.

How equipment lenders underwrite an oilfield file

The lender looks at the equipment (resale value, age, hours, specialization), then at the borrower (time in business, cash flow, credit, existing debt), then at how the equipment will earn (contracts, customer concentration, day rates or stage counts). Highly specialized tools with a thin resale market need a stronger borrower; standard trucks and compressors finance on the equipment itself. Terms generally run two to seven years, with advance rates up to 100% of cost on strong files and a down payment on others.

Working with MercFinancial on equipment

We place equipment files with lenders that have funded oilfield iron before and understand a workover rig is not a dump truck. Soft-pull pre-approval takes minutes, many equipment loans fund within one to two weeks, and the same file can be structured as a loan and a lease so you compare real payments.

MercFinancial is a commercial funding brokerage, not a lender. Approval, loan amount, rate, term and funding are decided by the funding source on the strength of the file; nothing on this page is an offer or a commitment to lend.

Frequently asked questions

Can I finance directional drilling equipment?

Yes. Mud motors, MWD and LWD tools, rotary steerable systems and complete toolstrings are financed by equipment lenders with an energy vertical. Because the resale market is specialized, the lender will weigh the borrower's contracts and cash flow more heavily than it would on a truck, and may ask for a larger down payment on a thin file.

Will a lender finance used oilfield equipment bought at auction or from a private seller?

Yes, routinely. The lender verifies the serial numbers, condition and value, sometimes with an inspection, and funds the seller directly at closing. Age limits and advance rates depend on the type of equipment.

Is equipment financing available with under two years in business?

Often, if the owner has industry experience and the equipment has a solid resale market. Newer companies see higher down payments and shorter terms until they build a track record. A signed contract or purchase order for the equipment's work strengthens the file considerably.

Can I pull cash out of equipment I already own?

Yes. A sale-leaseback or an equipment-secured term loan raises working capital against owned, lien-free equipment, typically a percentage of its appraised value. It is one of the fastest ways for a service company to fund payroll or a new contract.

Does financing equipment affect the Section 179 deduction?

No. Financed equipment placed in service during the tax year is eligible for Section 179 and bonus depreciation on the full purchase price, subject to the year's limits. Certain lease structures treat the deduction differently, so compare them with your tax adviser before choosing.

Guides on this topic

Oilfield Equipment: Lease or Finance? Running the Numbers — Compare leasing and financing for oilfield equipment: rigs, compressors, and tank batteries. Cost, ownership, taxes, and what lenders actually require.
How Equipment Financing Works With Section 179 — Financing equipment doesn't disqualify it from Section 179. See how loan and lease structures interact with the deduction, and what to ask your CPA before you buy.
Financing Flaring Compliance and Vapor Recovery Equipment — VRUs, combustors, and vapor recovery equipment can be financed like any other oilfield asset, often with captured gas revenue improving the terms lenders offer.
Working Capital Options for Oilfield Service Companies — A practical guide to lines of credit, invoice factoring, and equipment cash-out for oilfield service companies stuck in slow 60-90 day E&P pay cycles.
Commercial Truck and Fleet Financing: From Owner-Operator to Growing Carrier — Commercial truck financing ranges from a single used tractor for a new owner-operator to a pre-approved fleet line for a growing carrier. Here is how the structures work, what lenders check, and how to avoid the advance trap.