Finance or lease a directional drill in Texas while preserving cash for crews, tooling and projects. Learn approval factors and apply today.
A horizontal directional drill can open access to underground utility, pipeline, telecom and infrastructure work without cutting a full trench across roads, developed sites or other obstacles. The problem is the capital required to buy the rig and everything needed to keep it drilling.
Directional drill financing and leasing in Texas can spread that equipment cost over time while preserving cash for crews, drill rods, tooling, locating equipment, mud systems, fuel and project mobilization.
Quick Answer: Directional drill financing and leasing in Texas can help contractors acquire new or used horizontal directional drilling equipment without paying the full cost upfront. Credit typically reviews business history, cash flow, existing debt, drill size, hours, condition, seller and the utility, pipeline or infrastructure work supporting the machine.
Yes. New and qualifying used directional drills can potentially be financed when the machine has identifiable specifications, supportable value and a clear commercial application. One drill or a larger underground-construction equipment package can be considered depending on the business and transaction.
Equipment can include:
Your uploaded equipment guidance specifically identifies directional drills as eligible oil-and-gas and commercial equipment assets, while also stressing clear equipment details and an explanation of how the machine will generate revenue.
Texas businesses with a drill selected can review Mehmi Financial Group's heavy equipment financing options before committing a substantial deposit.
Texas has enormous construction and energy sectors, both of which can create demand for underground installation and trenchless equipment.
The U.S. Bureau of Labor Statistics reported approximately 921,700 construction jobs in Texas in July 2026, up 1.9% from a year earlier. (Bureau of Labor Statistics)
For contractors involved in utility, civil and infrastructure work, that scale supports a wide range of underground projects. Businesses serving those markets can review Mehmi Financial Group's construction and contractor financing focus when evaluating a drill purchase.
Texas's energy economy is also substantial. The Railroad Commission of Texas reported 157,460 producing oil wells and 82,409 producing gas wells in June 2026, with preliminary crude-oil production of about 119.5 million barrels for the month. (Railroad Commission of Texas)
For contractors serving pipeline, oilfield and energy projects through a directional drill or related equipment, Mehmi Financial Group's natural resources and energy financing page provides additional industry context.
Statewide activity does not make every HDD purchase profitable. The individual drill still needs enough billable work to support its payment, crew and operating costs.
Credit reviews the company, the drill and the work supporting the equipment together. A good machine cannot fix weak repayment capacity, while a financially strong contractor can still make a poor purchase if the drill is overpriced or poorly suited to its projects.
Business factors can include:
Equipment factors can include:
The financing file should make the transaction understandable without several rounds of follow-up.
Credit is effectively asking:
Who is buying the drill? What exact machine are they buying? Why do they need it? How will the payment be supported?
Provide enough detail to show exactly what type of underground work the rig is capable of performing.
Important specifications can include:
The difference between a small utility drill and a large pipeline HDD rig can be substantial.
Do not describe both simply as "directional drill."
A contractor installing short utility crossings beneath residential streets has a different equipment requirement from a business boring long, larger-diameter crossings.
The work should determine the drill specification.
Pullback capacity helps determine the type and size of installations the drill can realistically complete. More capacity can allow larger or more demanding projects, but it also usually means a larger capital investment.
Before choosing a machine, consider:
A company that primarily installs smaller telecom conduit may not need the same machine as a contractor performing large water, gas or pipeline crossings.
Buying more capacity can create room for growth.
But financing a significantly larger rig based solely on jobs the company hopes to win later can create unnecessary monthly debt.
A strong purchase is sized for current demand plus realistic growth, not the largest drill the company can qualify to buy.
Financing can preserve the working capital required to put the drill on a job and keep it productive.
Suppose a Texas contractor has $600,000 of available liquidity and selects a $375,000 directional drill.
Paying cash leaves $225,000.
The company may still need substantial cash for:
The drill itself does not complete the bore.
It needs an experienced crew, tooling, fluids, support equipment and enough cash to fund the project before customer invoices are collected.
The better question is:
How much operating cash should remain after the drill is purchased?
A contractor can own valuable equipment and still run into trouble if too much cash is locked inside it.
Usually. A replacement machine protects work the business already performs, while an additional drill requires evidence that another crew and machine can stay productive.
A replacement request can point to:
An expansion request should explain:
Suppose a contractor's current drill is regularly booked and the business subcontracts $35,000 per month of additional boring work.
A second drill can have a measurable economic reason.
Credit can compare the proposed equipment payment with the outsourced cost and available backlog.
"We want to grow our HDD division" does not provide the same evidence.
Connect the machine to specific work and quantify the operating benefit.
Useful support can include:
Suppose an underground contractor currently runs one HDD crew five to six days a week and has enough contracted work to establish a second crew.
The financing request should explain the second crew, not simply the second machine.
Equipment without people and projects is excess capacity.
Credit should be able to see how the entire production unit will operate after closing.
Potentially. Used directional drills can be strong commercial assets when their hours, condition, manufacturer support, seller and purchase price support the requested financing structure.
Prepare:
Used-equipment transactions can require more condition or valuation support, particularly when the machine is specialized. Your uploaded guidance notes that specialized units may require additional appraisal or inspection depending on the transaction.
The requested term should also fit the machine's remaining productive life.
A long payment can make an older drill appear affordable while leaving the business servicing both financing debt and major repairs.
Inspect the major drilling, hydraulic and undercarriage systems rather than focusing only on engine hours or exterior appearance.
Pay particular attention to:
A drill travelling around a yard does not prove that it can push, rotate and pull back correctly under working load.
Condition testing matters.
The rig can represent only part of the cash required to start drilling. A machine without enough usable rods, reamers and appropriate tooling may not be ready for the jobs the company expects to perform.
Budget for equipment such as:
Suppose the drill costs $325,000 but the business requires another $85,000 of rods and hard tooling to complete its typical projects.
The real equipment requirement may be closer to $410,000.
Show the complete hard-equipment package from the beginning rather than financing the drill and discovering afterward that the company still needs significant additional capital.
Potentially. Hard equipment directly tied to the drilling operation may be considered as part of the broader equipment request when clearly identified upfront.
A directional drilling setup may include:
Consider an illustrative project:
Total equipment requirement: $550,000.
Credit should see the complete capital need rather than reviewing the drill in isolation.
This also helps management determine how much cash will remain for payroll and project costs after closing.
The better structure depends on utilization, expected ownership period, equipment age and replacement strategy.
Ownership-oriented financing may fit a drill the company expects to operate for many years.
Leasing can provide different payment and end-of-term structures where management expects to refresh equipment on a defined cycle.
Compare:
Do not choose a structure based solely on the smallest monthly payment.
A lower payment may leave a larger amount due later.
At this decision point, use Mehmi Financial Group's equipment financing calculator to compare payment scenarios against conservative project cash flow.
Rates and structures are subject to credit approval and current market conditions.
Compare the payment with conservative job margin after crew and project costs, not gross contract revenue.
Assume a directional drill supports $90,000 of monthly billed work.
Direct expenses could include:
That leaves approximately $29,000 before the drill payment and general company overhead.
That is the number worth stress-testing.
What happens if one major project starts a month late?
What happens if unexpected ground conditions destroy expensive tooling?
What happens if a customer takes longer than expected to pay?
A directional drill payment should work in a normal month, not only when every crew is fully utilized.
Structure deposits and milestone payments before signing the purchase contract. A custom or factory-built drill may require money before the completed machine is ready for delivery.
A vendor could require:
Do not assume a financing approval for the completed drill automatically covers every pre-delivery draw.
Before signing, provide:
Your project's existing content planning specifically identifies horizontal directional drills as equipment where staged funding and build milestones should be addressed upfront.
The worst sequence is paying a large non-refundable deposit first and asking how to finance it afterward.
Prepare the company, machine and project information together so the complete transaction can be understood on the first review.
A practical initial package can include:
The underlying equipment guidance specifically calls for equipment details, revenue-generation information and an addition-or-replacement explanation.
A complete submission reduces repeated follow-up and makes the credit story easier to understand.
Most preventable delays come from incomplete machine information, unclear condition or transaction changes after review.
Common issues include:
Another issue is purchasing the wrong drill size.
If the company primarily performs smaller conduit work but buys a substantially larger machine without corresponding projects, the extra capacity can become an expensive idle asset.
Size the drill to the business before sizing the financing.
A strong file connects a specific HDD rig to existing underground work while leaving enough liquidity to fund crews and projects after closing.
Consider an illustrative central Texas underground contractor with nine years in business and $8.1 million in annual revenue. The business works in the construction and contractor sector and performs water, utility and communications installations.
Its existing directional drill is heavily utilized, while the company has spent approximately $210,000 over the previous year subcontracting overflow boring work.
Management selects a late-model mid-size HDD rig for $365,000.
The complete equipment package includes:
Total equipment requirement: $492,000.
The submission includes the vendor proposal, serial number, hours, drill specifications, current financial information, existing equipment obligations and evidence of current subcontracted drilling expense.
Management has an experienced second crew ready and retains enough cash after closing to cover payroll, mud products, fuel and mobilization while customer invoices remain outstanding.
The credit story is clear:
Experienced contractor. Identifiable hard equipment. Existing underground work. Measurable subcontracting expense. Crew available. Supportable payment. Adequate working capital.
A complete qualifying directional-drill request can sometimes receive a decision in as little as 4 to 24 hours, while used, customized or larger rigs may require additional review.
Final funding can still depend on:
If the drill has already been selected, submit the model, serial number, hours, thrust and pullback specifications, equipment package, total price and seller information together.
Yes, potentially. Used directional drills are generally reviewed based on manufacturer, model year, operating hours, hydraulic condition, undercarriage, tooling, seller and purchase price. Provide the serial number, photographs and maintenance history where available. Older or highly specialized rigs may require additional equipment condition or valuation support.
There is no universal contribution for every directional-drill purchase. The amount can depend on business history, credit, drill age, hours, transaction size and seller. More cash can strengthen certain requests, but contractors should retain enough liquidity for crews, mud, fuel, tooling and normal project-payment delays.
Potentially. A newer business generally needs stronger evidence of relevant operating experience, existing projects, available cash and a clear plan for using the machine. A drill tied to awarded underground work presents a stronger request than an expensive rig purchased mainly in anticipation of future contracts.
Potentially. Durable drill rods, reamers and other hard equipment directly required to operate the rig may receive consideration when included in the original equipment proposal. Itemize major components separately so the complete capital requirement is visible rather than adding substantial tooling after the drill has already been approved.
Potentially. A commercial mud mixer, reclaimer or related hard equipment used directly with the directional drill may be considered as part of the broader project. Include its manufacturer, specifications and purchase price separately so the complete drilling setup can be reviewed from the beginning.
It depends on annual utilization, expected ownership period and replacement strategy. Compare upfront cash, payment, term, end-of-term obligation, expected machine hours and total cash outflow. A lower lease payment does not automatically mean lower total cost if a significant amount remains due at maturity.
A complete qualifying request can sometimes receive a decision in as little as 4 to 24 hours, depending on the company, machine and transaction. Used rigs, specialized equipment and custom builds may require additional review. Final funding still depends on accurate documentation and satisfaction of all approval conditions.
A directional drill should replace subcontracting, protect existing utility work or add justified underground capacity without leaving the contractor short of cash for crews, tooling, mud and fuel.
Before committing to the machine, gather the serial number, hours, thrust and pullback ratings, complete tooling package, installed project cost and clear evidence of the work supporting the drill.
For directional drill financing and leasing in Texas, call Mehmi Financial Group at (437) 777-5901.
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