Get the Equipment You Need the Moment Work Picks Up
A new resource claim gets staked. A well needs servicing sooner than expected. A quarry lands a contract that doubles its hauling requirements overnight.
If you run a business in mining or oil and gas, you already know the drill (sorry, we had to). You know how fast demand can turn on in this industry, and how quickly you need to jump on new opportunities.
Deciding what equipment you need isn’t the problem. You know exactly what you need: another excavator, a second service rig, a crusher that can keep up with the new haul schedule. The problem is getting it fast enough to actually take advantage of the opportunity, without draining your working capital or waiting weeks for a bank to make up its mind.
That’s where lease-to-own equipment financing tends to make the most sense for operators in resource sectors like mining and oil & gas.
The Most Commonly Leased Mining Equipment
Some of the most commonly leased assets in mining and oil & gas include:
- Excavators, haul trucks, and dozers for site development and material handling
- Crushing and screening plants
- Drilling rigs, workover rigs, and service rigs
- Compressors, generators, and pump units
- Vacuum trucks, water trucks, and other field service vehicles
- Wellhead and pressure control equipment
- Site trailers and portable camp infrastructure
None of it comes at a small price, and equipment sitting on a dealer’s lot while you wait on bank financing doesn’t do your business any good either.
Buying Oil & Gas Equipment Outright Can Hurt Your Business in the Long-Term
Purchasing equipment outright ties up a large chunk of working capital in a single asset, right when you might need that same cash for payroll, fuel, or mobilization costs on the new contract. In an industry where opportunities can appear with very little lead time, that’s a real constraint.
Bank loans don’t always move fast enough either. Lenders can be slower to approve financing for mining and oil & gas equipment simply because the sector carries a reputation for volatility, even when the business applying is well established and completely healthy. That can mean weeks of back and forth for equipment you need running next week.
And just like new work rapidly coming into the pipeline, sometimes the pipeline dries up just as quickly. This shift in demand can leave you with extra equipment that you simply don’t need, tying up cash in equipment you don’t need, when what your business actually needs is liquidity.
Equipment Leasing Helps You Scale on Short Notice
An equipment lease spreads the cost of that excavator or service rig into predictable monthly payments instead of one large upfront cost. That keeps more cash on hand for the parts of the business that move quickly, like crew, fuel, and getting a new site up and running.
Leasing also tends to move faster than a conventional bank loan, since the lease is secured by the equipment itself rather than requiring the same layers of scrutiny as a traditional business loan. When a contract shows up on short notice, that speed is often the difference between landing the work and watching it go to whoever already had the equipment on hand.
Lease terms typically run 2 to 5 years, so you can match your payment schedule to the type of work you’re financing rather than locking into a rigid structure that doesn’t flex with the size of the job. You can also match payment frequency to your natural business seasons.
Finding a Lender Who Understands Oil & Gas Equipment Financing
Not every lender is comfortable financing mining or oil & gas equipment, which is exactly why it helps to work with someone who shops your deal to multiple lenders instead of being the only option in the room. A lease broker with relationships across several of Canada’s top equipment lenders has a much better shot at finding one who understands the industry and is ready to compete for your business.
Get Your Mining Equipment Lease Flowing Today
Don’t let equipment financing slow you down when you’re ramping up for a new job or shifting to a new contract. Equipment leasing gets you the excavator, rig, or service truck you need now, while keeping your cash flexible for whatever the job actually requires.
If you’re weighing whether to lease or buy your next piece of mining or oil & gas equipment, Thomcat Leasing can shop your deal to Canada’s top lenders and get you a straightforward answer, often in as little as 10 minutes. No bank bureaucracy, no runaround, just a real person who understands equipment financing.
Get your free Instant Equipment Leasing Estimate and see what your payments could look like today.
