Oil and gas equipment finance for energy service companies

Yes. Cranes, hoists, slings, shackles and offshore containers can be financed through hire purchase or leasing, and a rental fleet the company already owns can often be refinanced to release cash. Examination and recertification are running costs rather than assets, so they belong in the working capital budget. Lenders assessing lifting gear want a register showing each item's examination dates, who carries out the examinations, and utilisation across hire contracts, since gear whose examination has lapsed cannot lawfully be used and earns nothing until it is passed again. A complete register supports both the valuation and the lending case. We present rental fleets to asset finance providers who know how to value lifting equipment.

How often does lifting equipment need a thorough examination?

In Great Britain the Lifting Operations and Lifting Equipment Regulations require equipment used to lift people, and all lifting accessories, to be thoroughly examined at least every six months, and other lifting equipment at least every twelve months, unless a competent person has drawn up an examination scheme with different intervals. Equipment also needs examining before first use in some cases, after assembly at each new location, and after exceptional circumstances such as damage or a long period out of use.

• Equipment register. Each item with serial number, age and next examination date.
• Examination reports. Recent reports and any defects found.
• Utilisation. Days on hire per item across the past year.
• Hire contracts. Who hires the gear and on what terms.

The HSE sets out the thorough examination intervals for lifting equipment. New gear can go on plant and machinery finance, secondhand items on used equipment finance, and recertification costs on a working capital loan. Instant Quotes lets an energy services company see which panel lenders could fund lifting gear.

• Equipment ahead of a campaign. An operator or drilling contractor awards a work scope and expects tools, pressure control equipment or containers mobilised by a set date. The kit is bought before the first day-rate is earned.
• Long and procedural payment. Invoices go through operator approval portals, are matched to purchase orders and service entry sheets, and are commonly paid on long terms. A missing reference can push payment back a month.
• Seasonal weather windows. Offshore work concentrates in the calmer months, so wages and mobilisation costs peak in spring and summer while receipts lag into autumn.
• Recertification costs. Lifting equipment, pressure equipment and offshore containers must be inspected and recertified on schedule. A fleet coming due at once is a real cash event.
• Activity swings. Oil prices, fiscal changes and licensing decisions move operator spending. A service company can go from turning work away to idle equipment within a year.
• Diversification. Firms moving into decommissioning, wind or hydrogen projects often need new equipment and new approvals before the first contract.

Much UK service work is now tied to plugging and abandoning wells and removing infrastructure, a programme overseen by the North Sea Transition Authority; its decommissioning overview sets out the regulatory process operators follow. That work tends to be more predictable than exploration spending, and some lenders view it more favourably. Firms adding offshore wind capability, such as cable, foundation or turbine inspection services, should show that new revenue separately in forecasts, because it can change which lenders will engage. Our renewable energy finance page covers lending for generation assets themselves.

Buying equipment for a single campaign on a long agreement leaves repayments running after the work ends. Check that financed kit can earn from more than one customer, and keep some headroom for a quiet winter. Invoice finance provides cash as you invoice, but a disputed ticket can leave a gap. Personal guarantees are common on working capital lines; read our guide to personal guarantees first. If tax is the immediate pressure, an HMRC Time to Pay arrangement or a VAT loan may be cheaper than stretching an equipment facility. Equity investors with energy sector experience are another route for firms pivoting into new markets.