Specialist
Drilling Rig Finance & Leasing
For buying and refinancing construction equipment & drilling rigs
For buying and refinancing construction equipment & drilling rigs
A drilling rig is a substantial investment, crucial for exploration and extraction in the oil and gas industry. Given the significant capital outlay required, drilling rig finance and leasing emerge as strategic solutions for companies looking to manage their finances effectively. These financing options enable businesses to access the latest drilling technology without the hefty initial expense.
Drilling rig finance and leasing fall under the umbrella of asset finance, a lending structure secured against physical assets like vehicles, equipment, or machinery. This approach to finance offers the flexibility to spread the cost of the drilling rig over an agreed period, typically through fixed monthly instalments and interest rates. Depending on the chosen finance or leasing agreement, companies may have the opportunity to purchase the rig at the end of the term or return it to the financier.
When it comes to financing a drilling rig, businesses have several options tailored to their operational needs and financial strategies. Here are the most common finance types adapted for drilling rig acquisition:
Each financing option is designed to align with different business models and objectives, ensuring that companies can secure the necessary drilling equipment while maintaining financial flexibility and stability.
Securing finance or leasing for a drilling rig is a process akin to obtaining a conventional loan, but with specific considerations pertinent to the oil and gas sector’s demands. To initiate, applicants must furnish details about their business and the drilling rig they intend to finance or lease. A robust credit history and proof of repayment capacity are essential to reassure lenders.
Monthly repayments commence thereafter until the agreement’s conclusion. The finance or leasing type may necessitate additional expenses for the rig’s upkeep, insurance, and taxation. Maintaining the rig in prime condition and adhering to the contract’s stipulations is imperative. Contractual non-compliance or payment default could lead to rig repossession and the imposition of penalties.
Drilling rig finance and leasing offer a suite of benefits tailored to the unique requirements of the oil and gas industry:
These benefits underscore the strategic value of finance and leasing options in acquiring drilling rigs, ensuring companies can maintain cutting-edge operations while managing financial resources effectively.
While drilling rig finance and leasing can offer numerous advantages, it’s important to consider the potential drawbacks:
When considering drilling rig finance or leasing, it’s essential to weigh these challenges against the benefits, ensuring that the chosen financial strategy aligns with the company’s long-term objectives and capacity for risk management.
To qualify, you’ll need a solid credit history and the ability to demonstrate repayment capability. Information about your company and the specific drilling rig you wish to finance or lease is also required. Lenders will evaluate your application based on your creditworthiness, business stability, and other pertinent factors.
The borrowing amount is contingent upon the finance or leasing type, the drilling rig’s value, and your financial standing. High-value rigs often enable higher borrowing amounts, but it’s crucial to borrow within your means, considering your cash flow and budget constraints.
Interest rates fluctuate based on the finance or leasing type, borrowed amount, term length, and lender policies. Typically, extended terms attract lower interest rates but increase the overall cost. It’s advisable to solicit and compare quotes from various lenders to secure the most favourable terms.
Some lenders may offer finance options without requiring an upfront deposit, which can be beneficial for preserving capital. However, this might affect the interest rates and monthly payments, so it’s important to review the terms carefully.
Many finance agreements include provisions for technological obsolescence, allowing for renegotiation or upgrade during the term. It’s essential to discuss such scenarios with your lender beforehand to understand your options.
In some regions, government incentives or subsidies may be available for financing drilling rigs, especially if they incorporate environmentally friendly technologies. Research local regulations or consult with a financial advisor to explore potential benefits.
In need of drillin rig finance or leasing?
We can help you:
And when we’ve established the best type of finance for you, we will:
Call our team on 0203 900 4322 to discuss your requirements or book an appointment.
I approached Clifton Private Finance to help me get a mortgage as an Expat working in the Far East. I would normally 'cut out the middle man' on something like this and try to get myself a deal directly with the banks, but I am now sold on the broker concept and wouldn't hesitate to use Clifton Private Finance again. There were a number of complicating factors such as being an expat, the stamp duty holiday, the sheer amount I wanted to borrow and the fact I wanted it all wrapped up before the Stamp Duty holiday ended. It is clear to me now that the relationship that brokers have managed to foster with their banks means they can simply pull levers and make stuff happen that us ordinary folk cannot. Put simply, they are worth every penny, will take most of the stress out of the lending process, and seem to have access to deals that you just won't find on the internet. Thank you George and Jan for all your hard work!
James M
Luther was excellent. Very clear in his advice and explanations of products and was able to move things on very quickly when we ran into difficulties with the estate agents. Without a doubt I would recommend Luther to all friends, family and colleagues. Luther was a joy to deal with and took a lot of the stress out of a troublesome transaction, from my end. I would view Luther as real asset to Clifton Private Finance Ltd.
William W
The team at Clifton Private Finance has been outstanding, not only in helping me to obtain a mortgage on a slightly unusual home, but also in continuing to provide support and liaise with the lender and solicitors through to completion. Thank you for making the process of buying my first home much easier.
Chantelle S
Sam O'Neill, and the new lender he identified for me, worked tirelessly together using my time constraints, to make sure my mortgage application was completed on time. They are a brilliant company to work with, fast, efficient, open and transparent from the very beginning, and turned a seemingly impossible situation into a viable one. Sam was brilliant throughout the whole process and I would highly recommend him, and his colleague Helen, to anyone without hesitation, I cannot speak highly enough about them.
Myr B
I was incredibly lucky to find Clifton Private Finance after a search on line as their service has been more than exemplary. My point of contact was Sam 0’Neill and he was happy to help at every stage during the application of the bridging loan, making a stressful process much easier to deal with. He was always available by phone or email and gave prompt answers to queries I had as well as always getting back to me when he said he would. That to me is excellent customer service and I cannot thank him personally or the company enough for the support they have given me.
C Jefferey
Adam cannot thank you enough for all your support throughout this arrangement. You have gone more than the extra mile to support us. Without you we would not have got our dream retirement home. You have been most professional and personable. Liz and I would be more than happy if you wanted to use us a reference with respect to any future clients.
Nigel & Liz K - Bristol
You have certainly shown me that you do everything for your clients, including tolerating their excessive emails and questions for updates. I have been kept in the loop, from yourself, about why the delays were occurring (Nationwide, post etc) which I would like to highlight that I really appreciated. I certainly will be able to recommend you to others as and when the need arises.
Mr Morris
I recently contacted Clifton Private Finance after a Google search for bridging finance providers and was immediately struck by their efficiency and support. Forms were emailed over almost immediately and the necessary finance was arranged within a few days. None of the other companies I contacted came close to their professionalism, and the quote that I eventually received was impressive. Thank you Adam, your help has enabled us to reserve the house that we wanted and I certainly recommend you to others.
Mr M. R. - Oxford
Absolutely brilliant. The service was first class, got everything sorted efficiently and were always friendly. Any fees were negligible compared to the service offered. Robert was particularly outstanding.
Charles N
My advisor, Robert, was very helpful in finding the mortgage to suit me. He kept me up to date throughout the process and dealt with any issues when they arose.
Rowena C
