The oil and gas business is one of the most influential trades. Key industries like transportation and global trade, are contingent on the availability of oil and gas.
In order to run a successful company and cater to the demands of millions of Americans, ample capital is needed.
Small business owners in the oil and gas industry can leverage a small business loan online to expand their business and achieve greater growth. Fortunately, there are a variety of solutions available to help you secure the funding necessary to flourish in the industry.
3 loans for oil and gas business you should consider
Whether you’re laying new pipelines, scouring for oil deposits, or establishing new oil reserves, financing is needed at all stages of business. Here are the top three funding options available to oil and gas companies.
Bank loans
The banks are the primary providers of business loans for oil and gas companies. They are eager to invest in both oil exploration and oil production, and offer large loans that enable oil rigs to source the bulk of their startup costs.
Bank loans come at low interest, making them one of the most cost-effective lending options for businesses. With payment plans averaging about 5 years, you will have plenty of time to create the needed returns while repaying your loans.
Whether you seek to establish a new reserve, expand a current reserve, or extend pipelines, bank loans can help you meet your long-term financial goals.
Equipment financing
In addition to loans, banks offer equipment financing to help you attain the complex and expensive equipment needed to run a successful oil rig. The oil and gas industry entails the use of a diverse range of equipment and heavy machinery, and it’s a continued investment to maintain your equipment and expand your operation.
With equipment financing, you can purchase the drilling equipment, air compressors, generators, pumping equipment, and all other large machinery needed to thrive. To qualify, you need to provide a comprehensive business plan that details your precise course of action with the money borrowed and how you intend to create the needed returns on investment.
For expensive equipment, banks also often offer leasing options, which in some cases is a more financially sensible solution.
Working capital loans
Working capital loans offer businesses of all sizes access to needed capital to expand their business, as well as address immediate needs and opportunities. These short-term loans provide businesses with a lump sum of cash given upfront, which is then repaid, along with the interest rate, over a set period of time.
The loan amounts are often smaller in size, and the repayment period is shorter. One of the main advantages of working capital loans is fast access to money with relatively little paperwork.
Oil and gas businesses entail hefty startup costs as well as continued investment in order to expand operations.
Financing your oil and gas business with Credibly
For oil and gas businesses looking to secure financing from Credibly, the process is easier than you think.
When you apply, the form on our site guides you through each step. After submitting your application along with the necessary bank statements (and tax returns for larger loans), we’ll quickly evaluate the financial health of your oil and gas business. If approved, you may receive your funding in as little as 24 hours.
Getting approved for a business loan or other financing
In order to guarantee approval of the loan, it’s crucial to present lenders with a detailed business plan that outlines your precise course of action and how you intend to establish the necessary returns. Consider the various options available to you.
To get started now, fill out our online application. Submitting is free and easy and will not hurt your credit.
