Equipment Financing in Midland, TX

The Permian and its machines

Midland is the county seat of Midland County in West Texas, with small portions extending into Martin County, and had 132,524 residents at the 2020 census. It is located in the Permian Basin and is a major center for American oil and natural gas production. The Permian Basin is the highest-producing U.S. oil field, averaging 4.2 million barrels per day in 2019, spanning West Texas and far southeastern New Mexico. The Midland-Odessa combined statistical area had 340,391 residents in the 2020 census.

In an economy like that, a service company's trucks, pumps and tools are the product, and the same goes for the suppliers and haulers who keep them running.

Three tiers of equipment businesses

Field service companies

Work trucks, trailers, pumps and specialized tooling. See oilfield services.

Equipment suppliers

Yards, forklifts, racking and delivery fleets that supply the field. See oil and gas equipment suppliers.

Local trucking and hauling

Tractors, trailers and tanks for local oilfield loads. See oilfield trucking and hauling. Long-haul trucking is a restricted category, and this page does not promise funding for it.

Activity swings and fixed costs

Oilfield work rises and falls with activity in the field. When it is busy, owners want more equipment on the road. When it slows, the equipment payments and insurance do not. That mismatch is the reason cash planning matters more here than in a steady retail trade. Owners who size their equipment to a conservative level of work, and keep a cushion for slow stretches, tend to be better prepared for the swings.

An illustration of a ramp-up

For illustration only, suppose a service company adds a $150,000 truck and equipment package to take on a new customer. Between the purchase and the first customer payment, the owner pays a driver, fuel, insurance and maintenance. Round numbers, not our terms or a typical outcome. The package is the visible cost, but the weeks before it pays are the cash challenge.

Questions to ask before buying oilfield equipment

• Is the unit rated for the loads and conditions you actually run?
• Will your customers accept it on site, and are there any contract requirements for the equipment?
• Who services it locally, and how fast can they respond?
• What is the resale or trade-in value if activity slows?

Those answers decide how much you need and how long you carry the cost. Keep the written quotes together with notes on the contract the equipment is expected to support.

Planning for slow stretches

Keep a simple rule: do not size equipment to your best month. Size it to a normal month, and keep a cushion for slow ones. Owners who do this have more room when activity falls, and can add capacity later when new contracts are signed. A short rolling forecast of three to six months of expected work is often enough to tell whether a purchase makes sense.

How to apply

We fund $25,000 to $5,000,000, in as little as 24 hours. The application takes about five minutes with a soft credit pull, and sole proprietors can apply. Go to the application page. Related product pages: working capital, merchant cash advance, line of credit, term loans and fast funding.