A California engineering services firm built its business on public transportation infrastructure, with construction management at the center and land surveying and systems integration alongside it. The company closed 2025 with $25 million in revenue and a $35 million forecast for 2026, then spotted a way into a new industry: renting drilling equipment for oil fields.
Vision
Ownership wanted a second revenue line that didn't depend on public sector work. A recurring stream of private-sector income would give a single-sector business more balance, and the existing backlog meant the firm could pursue it from a position of strength.
Opportunity
The plan was to rent differential drilling toolkits for horizontal oil drilling, supplied by a Canadian manufacturer. Two major energy companies had shown interest through ownership's personal relationships in the region, and each drilled hole brings in $300K to $400K. With about 12 holes a year per toolkit, two toolkits put close to $7 million in added annual sales within reach.
Challenge
Equipment Lenders Balked
Traditional lenders wanted title to the equipment and wouldn't let it leave the country, which ruled out an international drilling project.
Closing Window
The energy companies' interest wouldn't last forever, so the purchase had to move quickly. Waiting on a slow financing process risked losing the opening.
Split Payments
The manufacturer wanted two payments tied to its down payment schedule, not one lump sum. That isn't how most standard funding is structured.
How Fora Financial Helped
Fora Financial approved the $3 million facility in three business days, half the usual turnaround. At the borrower's request, funding was held to line up with the manufacturer's down payment schedule, then split into two $1.5 million tranches 60 days apart. The facility is also eligible for prepayment once repayment funds arrive from the borrower's senior lender.
Results
Rental Income Begins
New recurring revenue starts right away through equipment rentals, adding to the firm's existing income.
Stronger Client Ties
Delivering for the two energy companies strengthens those relationships and could lead to more work.
Second Revenue Stream
A single-sector business now has a second line of income, which spreads its risk across two industries.
Conclusion
The capital arrived with the speed, structure and cost the opportunity called for, something standard equipment finance couldn't offer. The firm keeps its public transportation work at the center while a new line of business takes shape.
Why Fora Financial
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Speed
The approval kept the window with the energy companies open while the equipment purchase moved forward.
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Flexibility
Tranches and early prepayment let ownership shape the financing around the deal and manage its capital as things change.