In the Permian, work can surge or stop on a commodity price you do not control. A line of credit lets service and supply firms hold capacity without borrowing in advance of the need.
Apply Now →The Permian Basin is the highest-producing oil field in the United States, averaging 4.2 million barrels of crude oil a day in 2019. It lies in western Texas and far-southeastern New Mexico and is named for the Permian geologic period, whose rocks it contains in some of the world's thickest deposits. It includes several component basins: the Midland Basin, the largest; the Delaware Basin, the second largest; and the Marfa Basin, the smallest. Our grouping lists 19 counties, among them Midland, Ector, Howard, Reeves, Pecos, Ward, Winkler and Andrews.
A producer pays a service company; the service company pays its crew, its suppliers and its fuel vendor. Between those payments sits a delay, and the delay is where small firms feel pressure. A trucking subcontractor, a welding shop, a pump-parts dealer or a catering company that feeds work crews each has some version of the same arithmetic: costs up front, invoice at the end.
When activity slows, the pressure reverses. Customers stretch their payments, and the supplier is left carrying the cost of work already done.
| Ramp-up | Slowdown | |
|---|---|---|
| Need | Hire, stock, fuel up | Cover fixed costs while receivables stretch |
| Draw timing | Before work begins | During the stall |
| Repayment | From new invoices | From delayed payments |
| Risk | Over-buying | Slowdown lasting longer than planned |
The downturn use is the one that needs the most thought. A line can carry a firm through a stall, but it cannot make the stall shorter. Before drawing, work out how many weeks of costs you can fund at your current limit, and decide in advance what you will cut if the stall exceeds that number. A line that postpones that decision without informing it only moves the problem.
For illustration only, not our terms or typical results. A pump-parts supplier carries $12,000 of weekly costs. Two large customers move from thirty to sixty days to pay. Covering the extra thirty days on those accounts takes roughly $50,000 of added working cash. A line drawn only when the stretch occurs does that without the supplier borrowing in advance.
Reviewing these four numbers takes an hour and tells you more about whether to draw than any forecast can.
Funding runs from $25,000 to $5,000,000 and can be funded in as little as 24 hours once approved. The application takes about 5 minutes with a soft credit pull, and sole proprietors can apply. Start your application.
No. Any Texas business can apply. Oilfield service is an example of uneven cash timing.
Plan the limit against the number of weeks of fixed costs you could carry, and decide what you would cut before drawing.
No. Terms are determined on the application.
Sole proprietors can apply.
Three months of business bank statements and a 5-minute application. FICO 500+ considered. $25,000 to $5,000,000, funded in as little as 24 hours.
Apply Now →It takes about two minutes and it will not affect your credit score.
No obligation • No impact to your credit score
