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Drill Rig Finance

Quarry blast-hole drill rigs cost from around £180,000 for a compact hydraulic rig to £550,000 for a large diesel-powered production rig, and financing is close to standard practice given the scale of the investment.

Can you finance a drill rig?

Yes, drill rigs are financed as a standard asset purchase, usually on hire purchase or a lease, with the machine itself acting as the security. UK prices typically run £180,000 to £550,000, and most deals are written over 12-84 months with a deposit of around 10-20%. Decisions typically take 24–48 hours. Used machines are financeable too, usually with a shorter term.

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Typical Cost

£180k – £550k

Approval Speed

24–48 hours

Same-day for straightforward deals

Rates From

5.4% - 9.9% per annum

What would a drill rig cost per month?

£320,000
10%
60 months
9%
£0

Your estimate

Indicative only. Not a quote and not an offer of finance.

Pre-filled with a typical drill rig price. Indicative only, not a quote.

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Finance options

Hire Purchase (HP)

Rate
5.9% - 9.9% per annum
Term
12-84 months
Deposit
10-20%
Ownership
Yours at the end
Best for
Quarry operators who want a rig that's continuously part of the blasting cycle for years to come

Finance Lease

Rate
5.4% - 8.9% per annum
Term
12-84 months
Deposit
None required
Ownership
Return or buy (balloon payment)
Best for
Businesses expanding drilling capacity while an extraction phase or contract book grows

Operating Lease

Rate
6.4% - 9.9% per annum
Term
24-60 months
Deposit
None required
Ownership
Return at end
Best for
Contractors that want to keep the rig off balance sheet and upgrade to newer drilling technology on a set cycle

Representative example

On a purchase price of £320,000: a 10% deposit of £32,000, then 48 monthly payments of £6,750 at 5.9% APR representative (fixed). Total amount payable £356,000, including the deposit. The rate you are offered depends on your business and the asset.

What buyers actually specify

Guide prices for sizing a finance agreement, not quotes. Manufacturers in this market mostly price on application, so where a current UK list price could not be confirmed the row describes a specification class rather than naming a model. Your supplier quote is what the agreement is written against.

Machine or specification Guide price Type
Compact hydraulic surface drill rig (up to 89mm hole diameter) £180,000 - £280,000 Hydraulic Surface Drill Rig
Mid-size production drill rig (89-127mm hole diameter) £280,000 - £420,000 Hydraulic Surface Drill Rig
Large production drill rig (127mm+ hole diameter, tophammer or DTH) £420,000 - £550,000 Hydraulic Surface Drill Rig

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Tax benefits

A drill rig is treated as plant and machinery for tax purposes, so it qualifies for the Annual Investment Allowance (AIA), letting a business deduct the full cost from taxable profits in the year of purchase, up to the current £1,000,000 annual limit. Companies buying new, unused equipment may also qualify for full expensing, a 100% first-year deduction against Corporation Tax. These allowances apply where you own the asset, so they are available under a Hire Purchase agreement. Under a Finance Lease or Operating Lease you do not own the rig outright, so allowances are not claimed directly; instead the payments are generally deducted as a business expense against profits. Always confirm treatment with your accountant before committing to a structure.

Market context

Blast-hole drill rigs are bought almost exclusively by quarry operators and mining contractors who need to bore a regular pattern of holes ahead of blasting, so the rig's output is tied directly to how much rock a site can move forward. Financing is close to standard practice given the scale of the investment, and lenders look closely at the site's blasting licence and the operator's track record, since the drill rig only earns its keep once permitted extraction is under way. Replacement is driven by wear to the rig's rotation head, compressor and drill string rather than the chassis, and used rigs hold value well internationally, particularly where a documented maintenance history exists.

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Several of our 200+ lenders specialise in businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options exist. Checking your options here does not affect your credit score, because we do not run a credit search to match you. A lender will run their own checks only if you decide to apply.

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Frequently asked questions

Can I finance a drill rig before my quarry has full planning consent?
Lenders will generally want to see that the site holds, or is close to holding, the mineral planning permission and any blasting licence needed to actually use the rig, since the whole basis of the lending is the rig earning revenue through the extraction it enables. It's possible to arrange finance in principle ahead of final consent, but drawdown is usually tied to confirmation the site can operate. Discussing your permitting timeline with your broker early avoids delays once the rig itself is ready to deliver.
What's the difference between top hammer and down-the-hole (DTH) drilling for finance purposes?
The distinction matters for choosing the right rig rather than for the finance structure itself, since both are financed in the same way as capital plant. Top hammer rigs suit smaller diameter, shallower production holes and are generally faster in softer rock, while DTH rigs hold accuracy better over deeper or larger diameter holes in harder ground. Your supplier will size the right rig type against your quarry's rock and hole depth, and the finance terms, rate and deposit are driven by the rig's value and your trading history rather than which drilling method it uses.
Can I finance a used blast-hole drill rig?
Yes. Lenders will check hours on the rig, the condition of the rotation head, compressor and drill string, and service history, since these components see the most wear. Used rigs from established brands hold value well on the international market, and a documented maintenance history from an authorised dealer will support both the valuation and the finance terms you're offered. As with new rigs, lenders will still want confidence the site has the consent to operate it.
What term suits a drill rig's working life?
5 to 7 years is common, reflecting how long the rig's chassis, compressor and rotation system stay reliable under continuous blast-hole drilling. Operators running the rig as a core part of a long-life quarry often choose the longer end of that range to keep repayments proportionate to the extraction income it enables. Getting the term broadly right matters more than chasing the lowest monthly payment, since a mismatch either strains cashflow early in a project or leaves you paying for a rig that's already becoming expensive to maintain.
Is a drill rig eligible for Annual Investment Allowance?
Yes, a drill rig qualifies as plant and machinery, so it's eligible for AIA up to the current annual limit under Hire Purchase, which matters given the scale of a typical rig purchase. Leased rigs don't attract AIA directly, but the rental is usually deductible as a business expense instead. Given the values involved, it's worth confirming the treatment with your accountant at the point of purchase, since claiming the allowance in the year you buy the rig rather than spreading relief over several years can make a real difference to that year's tax bill.

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