Rig Financing & Leasing

Financing terms track the rig's expected service life, which is why new and used units are underwritten differently even when the buyer's credit profile is identical. New, fully-equipped rigs typically qualify for terms up to 60 months at rates around 5.99%, reflecting both the longer expected working life of new equipment and the manufacturer warranty coverage that protects the lender's collateral value for the first several years.

Used and reconditioned rigs carry shorter terms — typically up to 36 months — at rates around 4.95%. That shorter window isn't a penalty; it's a reflection of the asset's remaining service life and the fact that warranty coverage on a used rig is usually more limited than on new equipment. A used rig at a lower purchase price with a shorter term can still land at a comparable or lower monthly payment than a new rig, which is part of why the new-vs-used decision and the financing decision really need to be worked through together rather than separately.

Rates on any given deal will move with your credit profile, the specific rig, and the lender, so treat the figures above as the range we see most often rather than a guaranteed quote. Pre-qualification tells you where you actually land before you commit to a specific rig.

Down payment requirements vary by lender, rig condition, and buyer profile, but most financed rig purchases fall somewhere in the 10-20% range of the purchase price. Putting money down reduces the financed amount, typically improves the rate you're offered, and signals to the lender that you have skin in the deal — all of which can matter more on a first rig than on a fourth.

$0-down programs are available for qualifying contractors, and they exist specifically because a rig purchase can otherwise tie up capital a growing crew needs for payroll, fuel, and materials in the meantime. Qualifying for $0-down typically means a stronger credit profile, an established business history, or a lender relationship built on a prior financed rig performing well. It's not automatic, but it's a realistic option worth asking about before assuming a large down payment is required.

If a full $0-down structure isn't available on your file, a partial down payment — even 5-10% — can still meaningfully move the needle on rate and monthly payment versus financing the entire purchase price. We'll walk through what your specific down payment options look like once we have your business and credit information in front of us.

Rig financing underwriting looks at the same core factors any equipment lender considers, with a few industry-specific wrinkles. Time in business is the biggest one — an established contractor with two or more years of revenue history and steady job volume is a straightforward approval in most cases. Credit profile, both business and personal, matters too, particularly for newer companies where the lender doesn't yet have a track record to lean on.

For startup and new contractors without years of history, a solid business plan carries real weight. That means realistic revenue projections tied to actual booked or pipeline work, a clear picture of crew size and job capacity, and evidence of relevant experience — even if it's experience gained working for another spray foam operation before striking out independently. Lenders in this space have seen enough spray foam startups to know the difference between a plan built on real numbers and one that's aspirational.

Other factors that help: a down payment (even a modest one), an existing relationship with a lender from a prior equipment purchase, and choosing a rig configuration that's proven in the market rather than an unusual custom build, since more common configurations hold resale value better and represent lower collateral risk to the lender.

Adding a second or third rig is a different financing conversation than the first purchase, and usually an easier one once the first rig is performing well. A contractor with an existing financed rig that's been paid on time for a year or more has effectively built a credit track record with that lender, which typically streamlines approval on the next unit even while the first loan is still outstanding.

The underwriting question shifts from "can this business support a rig" to "can this business support two (or three) rigs running at once," which comes down to demonstrated job volume and crew availability rather than a hypothetical business plan. If you've got the work booked to keep a second crew and rig busy, that revenue picture is usually the strongest argument in the file.

It's also worth structuring multiple rig loans deliberately rather than letting them stack ad hoc — staggering terms so payoff dates don't all land in the same year, or consolidating financing with a single lender who already knows your business, can simplify cash-flow planning as the fleet grows. We help contractors think through fleet-level financing strategy, not just approve one rig at a time.