Heathbend Credit explains oil and gas equipment financing for Minot, ND and Ward County service companies: how equipment loans and leases work, what partners look at on specialized units, how to finance heavy equipment used or new, and Census figures for the county's mining-support businesses.
Mining Support Businesses in Ward County, ND
County Business Patterns counted 40 employer establishments in support activities for mining in Ward County, ND in 2023 (NAICS 2131), with 1,078 employees; half had fewer than five employees. The wider mining, quarrying and oil and gas extraction sector had 48 employers with 1,480 employees and an annual payroll of $191.4 million. Nonemployer Statistics counted 29 mining-support businesses without payroll in 2024, a separate program and year.
Those figures cover the county, not any one field or company, and they say nothing about drilling activity or prices. They do show a group of mining-support employers in the county, which is why equipment financing for service units is a topic here.
Equipment Loans in Plain Terms
A loan used to buy a specific piece of equipment, secured by that equipment. You own the unit from the start; the lender holds a lien until it is paid off. Payments are fixed over a term that usually reflects the machine's working life. If payments stop, the lender can take the unit back, which is why partners weigh the unit's resale value.
The Mechanics of an Equipment Lease
A lease lets you use the unit for a set term in exchange for regular payments, while the lessor owns it. At the end you return it, renew, or buy it at a price set in the lease. Some leases are structured so that the buyout is nominal, which makes them work much like a loan; others have a larger residual and suit owners who plan to upgrade.
Which is better depends on how long you will run the unit, how the payments fit your cash, and the tax treatment, which your accountant should advise on.
How to Finance Heavy Equipment for Oilfield Work
- Get a detailed quote or bill of sale: make, model, year, VIN or serial, hours or miles.
- For used units, add inspection and maintenance records and photos.
- Describe the work: which services the unit performs and for how many customers.
- Pull business bank statements and the latest tax return.
- List existing equipment loans and leases.
Our heavy equipment payment calculator lets you test payments at different terms before calling.
What Partners Weigh on Specialized Units
A general-purpose machine, such as a skid steer, has a broad resale market. A truck-mounted unit built for one oilfield service has a narrower one, so a partner may look harder at its condition, the business's contracts and how concentrated its customer base is. A service company that works for several operators may read better than one that depends on a single customer.
Revenue that swings with activity in the field also gets attention. Partners may look at twelve months or more of deposits to see how the business handled slower stretches.
An Illustrative Unit Purchase
Illustrative only. A small service company buys a used vacuum truck for $165,000 with $25,000 down. At a test rate of 10 percent over 60 months, the payment on the $140,000 financed is about $2,975. The owner compares that with the truck's expected billable days a month at its day rate and checks that the payment is covered even in a month with half the usual work.
Next Reading for Service Companies
The equipment financing page compares loans and leases in more detail. Other sectors are on the industries page, and county figures on the Minot, ND page. The rest of the articles are listed on the blog.
By Heathbend Credit · Updated
