1. Drill Rig Financing Options

    March 10, 2017 by Savannah Adkins

    There are plenty of ways to go about financing your drill rigs, but which option is going to help you best achieve your overall business goals? To answer this question, it is pertinent that you first understand the ins and outs of the various financing options offered from lenders. From there, you will be able to make an educated decision that not only fits your budget but aligns with your company’s strategic plan.

    Jake Rockafellow, Rig Source’s Controller outlines below two of the most common finance options typically offered for drill rig purchases. Take a minute to review each lease option for a better understanding of the terms, pro’s and con’s.

    Option 1: Full Payout Leases (Capital Lease)

    This lease allows buyers to finance 100% of the drill rig purchase price including freight, taxes and extended warranties. The buyer owns the drill rig at the conclusion the lease.

    • Pro’s:
      • Buyer has full ownership of the drill rig upon maturity of the lease
      • Tax advantages:
        • Monthly interest payments are tax deductible
        • Depreciation expense is tax deductible
    • Con’s:
      • Higher monthly payments compared to a fair market value lease (outlined below)
    Option 2: Fair Market Value Lease (Operating Lease)

    This lease allows the end user to finance less than 100% of the total purchase price including freight, taxes and extended warranties. The end user DOES NOT own the drill rig at the conclusion of the lease.

    • Pro’s:
      • Lower monthly payments compared to full payout leases
      • Payments are “moldable” to meet the end user needs
      • Improved profitability and cashflow
      • Monthly payment is tax deductible
    • Con’s:
      • Early termination fees could apply if the lease is terminated prior to its original maturity
      • Additional costs could apply upon return of the drill rig to the leasing company if more than normal wear and tear is present

    Still not sure which route to take? Try looking at the sample drill rig purchases to see a side by side comparison.

    Rig Source Finance Infographic

    As a final note, “keep in mind that drilling is a fairly niche industry, and not all finance companies are familiar with drill rig sales. Be sure to take your time, search and even ask your drill rig supplier for finance recommendations,” states Rockafellow. Reputable drill rig suppliers typically have excellent partnerships with lenders, who are educated in drilling equipment, and are more likely to extend a financing offer to your company. For more drill rig financing information, please give Rig Source a call at 630.365.1649. We have over a decade of experience getting new and returning customers alike into the drill rigs of their dreams.



  2. End of Year Savings

    November 15, 2016 by Savannah Adkins
    Section 179 and Bonus Depreciation Available for 2016 Purchases

    Do not let the year slip by without taking advantage of special tax benefits on new and used equipment purchases. Both Section 179 and Bonus Depreciation have been approved for a limited time through December 31, 2016. In order to qualify for these tax breaks, you must purchase or finance your equipment by December 31, 2016.

    Rig Source has a complete inventory of drill rigs and crawler carriers ready to start working on your next jobsite project. We offer sales on both new and used equipment in order to meet the needs and budget of every customer. Within our own shop, we specialize in servicing the industry leading, brand name equipment you’ve come to rely on, and even work direct with manufactures on customizations. Our dedicated sales team is knowledgeable in every type of drilling and can work with you to build a rig to suit.

    Understanding The Benefits

    2016 Deduction Limit = $500,000

    • This deduction is good on new and used drill rigs or crawler carriers, parts and other business assets.


    2016 Spending Cap on Equipment Purchases = $2,000,000

    • This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis.

    2016 Bonus Depreciation = 50%

    • Bonus Depreciation is only available on new equipment, and is generally taken after the Section 179 Spending Cap is reached.

    Section 179 and Bonus Depreciation Chart

    At a 35% tax rate, tax savings would be $206,500.00 ($590,000 x 35% tax rate)

    For more information on equipment eligible for Section 179 or Bonus Depreciation tax credits, give Rig Source a call at 630.365.1649.

    *For more information regarding the details of Section 179 and Bonus Depreciation, please contact your local government agency and tax advisers.



  3. 2016 NDA Convention

    September 8, 2016 by Savannah Adkins

    Come network with Rig Source at the National Drilling Association’s annual convention being held in Pittsburgh, Pennsylvania on September 15-16, 2016.

    Rig-Source-NDA-Convention-Reminder

    The National Drilling Association is a non-profit trade association dedicated to the geotechnical, environmental and mineral exploration drilling industries. Each year the NDA hosts their annual convention which brings contractors, manufacturers and affiliated members of the drilling industry together to network, educate and promote the use of professional drilling contractors and their methods. As a long time member and dedicated supplier of geotechnical and environmental drill rigs, we are excited to extend an invitation to this annual convention to you.  Attending doesn’t require membership so whether you are already familiar or new to the drilling industry, you’re sure to benefit.

    This year’s agenda offers a full list of influential speakers from a variety of drilling backgrounds. Topics include everything from drilling safety and best practices to educational seminars on how to drill with various tooling and equipment. Depending on the state in which you work, the NDA Convention also qualifies for Continuing Education Credits. Adding to the excitement, the NDA has announced they’ll be unveiling their new association logo during Thursday night awards presentation. Rig Source will also be available throughout the convention to discuss your drilling equipment needs. We offer a diverse selection of drill rigs for sale and rent and go above and beyond to provide drillers exceptional service and support.

    For more information on Rig Source’s drilling equipment and services, give us a call at 630.365.1649 or get registered for the 2016 NDA Convention and stop by our booth to discuss.



  4. Drill Rig Trade-In’s

    August 24, 2016 by Savannah Adkins

    Drill Rig Trade InDid you know Rig Source offers trade-in options for most used geotechnical and environmental drilling rigs?

    Here at Rig Source we understand that drilling equipment needs change over time which is why we offer flexible options and equipment solutions for every unique situation. Whether your rig quit running, you simply want an upgrade or jobsite challenges require the use of a different rig; we make getting into a new drill rig easier than ever with trade-in options.

    How It Works

    Rig Source accepts trade-in’s on drill rigs in a variety of brands such as CME, Diedrich, Geoprobe and Mobile. All rig conditions will be considered, and units can be skid, truck or track mounted. To begin, our team will thoroughly discuss your equipment goals with you, review and analyze your existing rig, and work to find a new or new-to-you drill rig that best suits your needs. We offer competitive pricing on all geotechnical and environmental drill rigs and provide fair market value for all incoming equipment. While we cannot guarantee acceptance of every drill rig for trade, we will do our very best to accommodate your needs in order to reach your specified equipment goals.

    Benefits of Trade-In’s

    Choosing to trade-in your drill rig when purchasing a new rig has a number of advantages. Trading in equipment is the ultimate hassle free way to unload your used drill because it eliminates having to hunt for a buyer and reduces the amount of time and money spent getting your older unit to a sellable condition. Similarly, trade-in equipment can be a great way to lower the cost of a new drill purchase by reducing the amount you need to finance. Many of our customers also take advantage of additional tax benefits available for trade-in equipment purchases. For specific trade-in tax benefits and laws, please consult with your tax advisor.

    Learn the value of your rig and take advantage of our trade-in options today by calling Rig Source at 630.365.1649.



  5. Gear Up Drillers – The 2015 NDA Convention Is Here

    September 10, 2015 by Savannah Adkins

    Pack your bags for this year’s NDA Convention, and stay on the forefront of geotechnical, environmental & mineral exploration drilling methodology and technology.

    2015 NDA Convention

    2015 NDA Convention – September 17-18

    The National Drilling Association Convention is an annual event hosted by the NDA and sponsored by its members and affiliates of the drilling industry. This convention has been noted for providing excellent networking opportunities within the industry, and provides ample educational opportunities for businesses to learn how to best service their customers. As long time members of the NDA, Rig Source continues to support their annual convention, and highly recommends those in the industry take part. Location: Turf Valley, Ellicott City, MD.

    Rig Source’s Contribution

    As a drill rig sales, rental and service center for the geotechnical and environmental drilling industries, Rig Source will be exhibiting at the NDA Convention, and would love to see you at our booth. If you’re an existing customer, stop by and share your latest drilling story with us. We enjoy hearing about the work our drilling rigs have mastered since leaving our shop, and how they have benefitted you as a driller. Additionally, if you’re new to the industry, be sure to drop in and introduce yourself. We welcome all new industry members and look forward to sharing our services with you. During the convention, owners, Mike & Lisa Crimaldi will be available to discuss drilling rig options with you, and offer creative equipment solutions for your specific drilling projects.

    Special Recognition

    Rig Source would also like to make special mention that two of our long time customers, Chuck Valenta of Terracon and Dan Dunn of Major Drilling America, Inc. will be conducting a transformative safety panel discussion during the convention. Topics will include accidents, safety and solutions to help prevent drilling related accidents from occurring. These two gentlemen are experts in the geotechnical and environmental drilling industry so you won’t want to miss out on the opportunity to gather some of their tricks of the trade.

    For more information on Rig Source or our NDA Convention Sponsorship, please give us a call at 630.365.1649.