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Business Loans
for Oil & Gas Companies

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The United States has over 9,000 independent oil and gas companies, many of which employ just twelve people. While the layperson thinks of Chevron, Exxon, or Mobil when naming and oil or gas company, countless smaller businesses support the industry in exploration, extraction, refining, and transportation.

The oil and gas industry has a total industry size of $339.1 billion, petroleum refining has an industry size of $589.3 billion, and the oil pipeline transportation industry $14.1 billion. Depending on where you want to launch or grow your business, there’s plenty of room to be successful.

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What Do I Need to Qualify?

Below is a list of the requirements to get approved for business funding with our most basic program.

  • At Least 3 Months in Business
  • 530 Min. Credit Score
  • $10,000 Min. Monthly Revenue

    • How Do I Apply?

    Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at

    (888) 882-6117

    or

    Submit your online application by clicking apply below and entering a few basic details about your business.

    Reasons for Oil and Gas Companies to Borrow

    There are many reasons for oil and gas companies to borrow. Some support continuing operations and others promote growth and expansion. Identifying why your company needs to borrow can help you find the best lender – some lenders may not offer the loan product you need, others could have terms that don’t work with your business. 

    Getting clear on why you need to borrow before applying for a loan helps you borrow successfully. Here are the top reasons that oil and gas companies borrow money.  

    Purchase equipment

    The oil and gas industry is equipment heavy – from shale shakers to sand pumps, there are a lot of tools on an oilfield. At a refinery, you’ll need storage tanks, pumps and exchangers, and pressure vessels. Regardless of where you operate in the industry, the right equipment keeps you in business.

    But equipment wears out, or becomes outdated. When it’s time to replace it, many small businesses need to borrow. Borrowing to purchase new equipment can also support an expansion. To grow and take on new business, you may need to purchase additional storage tanks or sand pumps. 

    Meet working capital needs

    No matter how closely your accounting team monitors your budget, cash flow issues can arise. A customer’s payment doesn’t arrive on time, or there’s a delay in processing a deposit. But you still need to meet your daily operating expenses.

    Working capital are the funds you have available to cover expenses like payroll, rent, and utilities. Paying these bills keeps the lights on – and the pumps running – so for many small businesses skipping a payment isn’t an option. This is a situation where borrowing short-term is a good choice.

    Expand operations

    Is it time to grow and expand your business? Maybe you want to add pipeline, or transportation routes, to get oil to market faster? Perhaps you need to invest in more research and identifying natural gas reserves? 

    When it’s time to expand operations, many small businesses borrow. Borrowed capital allows them to invest in an expansion without pulling money from daily operating expenses. If your business’ cash flows can cover the loan payment, it’s less risky to borrow the funds than to take a huge sum of capital out of your reserves. 

    Best Business Loan for Oil and Gas Companies

    Purchase equipment

    The oil and gas industry is equipment heavy – from shale shakers to sand pumps, there are a lot of tools on an oilfield. At a refinery, you’ll need storage tanks, pumps and exchangers, and pressure vessels. Regardless of where you operate in the industry, the right equipment keeps you in business.

    But equipment wears out, or becomes outdated. When it’s time to replace it, many small businesses need to borrow. Borrowing to purchase new equipment can also support an expansion. To grow and take on new business, you may need to purchase additional storage tanks or sand pumps.

    Meet working capital needs

    No matter how closely your accounting team monitors your budget, cash flow issues can arise. A customer’s payment doesn’t arrive on time, or there’s a delay in processing a deposit. But you still need to meet your daily operating expenses.

    Working capital are the funds you have available to cover expenses like payroll, rent, and utilities. Paying these bills keeps the lights on – and the pumps running – so for many small businesses skipping a payment isn’t an option. This is a situation where borrowing short-term is a good choice.

    Expand operations
    Is it time to grow and expand your business? Maybe you want to add pipeline, or transportation routes, to get oil to market faster? Perhaps you need to invest in more research and identifying natural gas reserves? When it’s time to expand operations, many small businesses borrow. Borrowed capital allows them to invest in an expansion without pulling money from daily operating expenses. If your business’ cash flows can cover the loan payment, it’s less risky to borrow the funds than to take a huge sum of capital out of your reserves.
    Acquire another oil or gas company

    An acquisition is another way to grow – particularly if it would expand your reach into a new market or geographic area. Acquiring another oil and gas business that’s for sale allows you to skip the work of marketing and reaching out to new customers. But it requires a large sum of money upfront.

    You’ll have to pay a valuation company to put together the company’s true value, lawyers to help draw up contracts, and brokers to negotiate the price. Then you’ll have to buy out the sellers. A large business loan is excellent for this purpose.

    Apply Directly to One Source!

    Work with a direct lender and get a business loan as fast as the same day. Shield Funding offers competitive rates and terms on all it’s funding programs. Apply now with a trusted lender that has been helping business owners secure working capital for almost two decades.

    Apply Now

    Questions to Ask Before Taking Out a Loan

    Once you know why you need to borrow, and how you intend to use the funds, ask yourself a few more questions before approaching lenders. 

    Different lenders work within lending caps. Some can lend up to $2 million, others prefer to extend credit in smaller amounts. 

    Traditional banks prefer to work with larger loans – for them the costs to underwrite and fund the loan are the same regardless if it’s a $50,000 loan or a $500,000. If you need a smaller loan, you could find it difficult to get funding at a bank and might have better luck with an alternative lender.

    Your credit score is a numerical representation of your creditworthiness. A good credit score reflects an on-time payment history, no bankruptcies or loan defaults, and reasonable debt balances. Lenders view it as a sign that you’ll be responsible with the funds they lend you.

    Banks and traditional lenders prefer to work with borrowers who have credit scores of 720 and above. If you have a score below this level, you can get funding at an alternative lender.

    Bankers and the traditional lending community are known for taking a conservative approach to lending. They want to see that a business has a long history of success, including growth and decent cash flows. When you apply for a bank loan they could ask to see several years of tax returns and financial statements.

    Newer businesses may be successful but lack the time in business to appear “safe” to a bank. Alternative lenders will extend credit to your oil and gas business after just two months in operations as long as you have decent revenues. 

    Anytime you borrow money, you need a plan to pay it back. Before taking out a loan, prepare a budget. Put the loan’s projected monthly payment into your budget and see how it will impact cash flows. 

    Your current revenues should be enough to cover the loan payment – at least for a while until any new project begins generating profit. If it looks like you would struggle to make loan payments, consider taking out a smaller loan. 

    Get Started on Your Small
    Business Loan

    Looking for fast business funding without the hassle? Work with a direct lender for same-day funding! Avoid endless calls and broker fees. Apply now and get funded as fast as today!

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