Financing for energy and natural resources
Oilfield services, forestry and mining suppliers run heavy equipment and wait on large customer invoices.
Key points
- Oilfield, forestry and mining suppliers run heavy, specialised equipment.
- Large operators often pay on long terms.
- Commodity prices drive cash flow swings.
- Factoring and equipment financing are both common.
How financing works in energy and natural resources
Energy and natural resources businesses, from oilfield services and forestry to mining suppliers, run heavy equipment and often work for large operators who pay slowly. When commodity prices move, so does demand for your services.
Financing helps you keep equipment working, get paid sooner on big invoices, and stay stable through the swings.
Common financing needs
Here’s how businesses in this industry typically match their needs to the right kind of financing.
| What you need | Usually the best fit | Why |
|---|---|---|
| Heavy and specialised equipment | Equipment financing | Trucks, rigs and machinery financed over their working life |
| Long payment terms from operators | Invoice factoring | Advance on invoices to large operators who pay in 60 to 90 days |
| Working capital through price swings | Lines of credit | A buffer when activity slows |
| Buy a competitor’s fleet | Business acquisition | Grow capacity by acquiring equipment and contracts |
How NorthMerit can help
Apply once and we’ll connect you with one financing partner who works with businesses like yours. It’s free, and there’s no obligation.
What lenders look at
Lenders look at your customer base, contract terms, equipment age and value, and how your revenue has moved with commodity prices. Master service agreements with major operators are a strong signal.
Lenders that understand the sector will look past a single slow year if your equipment and customer relationships are strong.
Other things partners commonly ask about: heavy and specialized equipment; long payment terms from large operators; commodity-driven cash flow swings.
Factoring an operator invoice
An oilfield services company invoices an operator $120,000 on 75-day terms and factors it to cover payroll.
How to prepare
Have your customer list and service agreements, an aged receivables report, an equipment list and recent financial statements ready.
Common questions
Is NorthMerit a lender?
Does it cost anything to apply?
Who will contact me?
The right financing, from the right partner.
Apply once. One financing partner who knows businesses like yours. Free, with no obligation.
