Directional Drilling Company

Special Terms:

48 months, the size of the ask given the size of the company (1.2 million approved for a company that had a top-line revenue of 3 million last year), over collateralization via other free and clear assets, RPO (rental payments applied).

Purpose:

Secure financing approval while structuring a plan that provided the customer with a manageable monthly cash flow.

Challenge:

Sourcing a large financing amount relative to the company’s size and compiling sufficient data to justify and support the request.

Solution:

Structured a first amendment lease with a 20% residual, establishing a stronger base-term cash flow while preserving backend flexibility. This allowed the customer either to pay the residual to assume ownership of the equipment or to refinance and extend the term.

Impact / outcome

The customer successfully procured critical equipment to pursue larger, higher-margin contracts that were previously unattainable. With the first amendment lease, they gained the ability to operate the equipment under a cash flow structure that supported growth, scalability, and business expansion.