Reserve-Based Lending Vs Advanced Royalty Program

For years, oil and gas investors have relied on antiquated means of obtaining the capital they need to fund their operations. Reserve-based lending for years now has been one of the only options for getting the funding you need quickly, but it often leaves little to be desired. That’s why at Advance Royalty Company, we came up with a better solution we call the Advanced Royalty Program. In today’s blog, we take a closer look at what sets the Advanced Royalty Program apart from other methods like reserve-based lending. Keep reading to learn more. And, if you are interested in obtaining smarter funding using your mineral rights royalties, contact us at Advance Royalty Company today to learn more.


Let’s start off by comparing the mean of qualification between reserve-based lending and Advanced Royalty Program with Advance Royalty Company (ARC). With traditional reserve-based lending, the only way you will receive funding is if you already have an existing operation that produces $20 million in annual revenue. While for some larger operations, this may not be an issue, it can severely limit startups and smaller ventures. With the Advanced Royalty Program, you can qualify for funding from your mineral rights royalties with as little as $10,000 in monthly revenue from your existing oil and gas assets. This makes it much less difficult to qualify for the capital you need. If you do some quick math, you’ll actually need $19,990,000 less in monthly revenue than you would for traditional reserve-based lending in the oil and gas industry.


Granted reserve-based lending is one of the fastest means of obtaining funding in the industry, Advanced Royalty Program is even faster. Reserve-based loans typically take a minimum of 90 days from start to finish — usually more. All of our funding is done in-house with Advanced Royalty Program, so you’ll have a proposal developed in as little as 10 days for funding from your mineral rights royalties. Reserve-based lenders have to deal with miles of red tape and challenges that Advance Royalty Company simply doesn’t since everything is done in-house. ARC knows that in the oil and gas industry, things move fast. That’s why it’s critical to choose funding options like Advanced Royalty Program that can get you more money more quickly than reserve-based lending. Give yourself a competitive edge for your financial investments, contact ARC today to learn more about Advance Royalty Program and your mineral rights royalties.

Asset Leveraging

For years it’s been accepted as a fact that reserve-based lending in the oil and gas industry can only offer you up to 30% of the actual value of the asset that you are looking to acquire. With Advanced Royalty Program, our alternative financing solutions that leverage your mineral rights royalties enable you to factor in your future production when seeking funding. That means that you can get up to 100% of the projected value of your oil and gas producing assets, not 30% like dated reserve-based lending. With the Advanced Royalty Program at the Advance Royalty Company, you’ll get more funding more quickly.

Risk Management

Advanced Royalty Program is far and above the best way to minimize your risk when you need funding. Reserve-based lenders may have creditors that force the owner to hedge their production in an effort to increase the profit margin by selling hedges. With Advanced Royalty Program, you can think of it as selling a small portion of your future production to finance your project. The market can fluctuate up or down and you will always get a consistently fair amount. Imagine no longer being at the mercy of the volatile oil and gas market. Learn more about how Advanced Royalty Program mitigates your risk through mineral rights royalties by contacting us today.


With both reserve-based lending and Advanced Royalty Program, there expenses that qualify as tax write-offs. But that catch is that with reserve-based lending, the amount you can write off is always the same regardless of the oil and gas market. With our reserve-based lending alternative, Advanced Royalty Program, the more oil and gas prices rise, the more you can write off on your taxes. So locking into a set price with Advanced Royalty Program provides you a safety net from the oil and gas market plummeting and rewards you with bigger tax write-offs when the oil and gas market is thriving — win-win.


The Advanced Royalty Program solution requires that the producing assets be put forth as leverage to be used for mineral rights royalties. We do not require you to leverage any other assets you or your organization own. However, this is not the case with reserve-based lending. In most situations, reserve-based lending will require you to put up all of your assets as collateral in order to secure funding. That means if something were to go wrong, they would not only seize the operation you sought funding for but the entirety of the assets in your portfolio. At Advance Royalty Company, we believe in providing fair, honest, and quality funding for your oil and gas assets.

Learn More About Advanced Royalty Program At Advance Royalty Company

Thanks for taking the time to learn a little more about the difference between our Advanced Royalty Program at Advance Royalty Company and traditional reserve-based lending for the oil and gas industry. If you are interested in learning more about how we can help you through mineral rights royalties and the Advanced Royalty Program solution or have any questions at all, please don’t hesitate to reach out to us at any time. We are happy to help in any way that we can.