Unlocking Capital for Used Oil & Gas Equipment
A Colorado-based gas company acquired five used “workover” drilling rigs at auction to support ongoing field operations. However, due to both industry-related lender bias and the equipment’s age, traditional banks refused to finance the transaction.
Commercial Funding Partners secured $5,125,000 in financing with a 60-month lease, enabling the company to move forward and strengthen its financial position.
The transaction presented multiple barriers that eliminated traditional lending options.
The rigs varied significantly in age—some as old as 25 years—creating concerns around collateral value and longevity. Combined with lender hesitation toward the oil and gas sector, the deal was viewed as too risky by conventional institutions.
Key challenges included:
Commercial Funding Partners structured a financing solution tailored to the realities of the transaction.
We secured $5,125,000 in funding through a 60-month lease, allowing the company to finance the rigs despite their age and the industry’s lending challenges.
With financing in place, the company successfully acquired the rigs and enhanced its operational capabilities.
Results included:
Not all equipment fits traditional lending standards.
Older assets, auction purchases, and industries facing lender resistance often require specialized financing solutions. This transaction demonstrates how the right partner can unlock capital and turn overlooked opportunities into operational advantages.
