Mining Financing Options for Equipment Leasing and Loans

Mining Project Finance and Funding

The mining and fracking industries need large equipment to do the processes to obtain the minerals, metals, or gas and oil. Without that equipment, mining and fracking would not be able to happen.

There are two ways to obtain that type of equipment; lease or finance it. Each has its benefits, and which way you decide to go will depend on several factors concerning your business.

Types of equipment

Let’s take a look at the types of equipment needed for mining and fracking.

Mining Equipment

Why Lease Mining and Fracking Equipment?

The prices of commodities drive the mining industry as a whole. Therefore, if a particular “hard commodity” is in short supply and the price goes up, there may be more activity in that sector. The wisdom is associated with preserving cash for fixed overhead expenses like personnel, transport, living quarters for remote digs, travel to and from, and the cost associated with getting your product to market.

It is a much wiser decision to lease conveyors, crushers, diggers, haulers, ball mills, hammer mills, scrubbers, separators, as well as all of the large 250-ton trucks required to haul raw minerals. The tax benefits are associated with making lease payments, and in some situations, the government subsidy related to mining-specific metals or ores decides to lease an easy one indeed. Check with your CFO or tax advisor on the best structure and term for your business.

Types of Mining & Fracking Equipment We Lease

Mining Equipment

Mining Equipment Financing

When it comes to mining, you will certainly need the following equipment:

Fracking Equipment Financing

Fracking is a type of mining for gas and oil. The following is some of the equipment that will be used to frack:

There will also be a need for dump trucks and excavators to make roads into the drill site, bring in pipe and equipment for drilling and hauling, as well as other processes.

Why Choose Equipment Lease to Be Your Mining Equipment Leasing Company?

Equipment Leases Inc. is the perfect solution for mining equipment funding. Our experience in the industry and knowledge of each piece of equipment needed to operate a successful mining or fracking operation will make the entire process much more straightforward and streamlined for the mine owners or excavators.

We can fund various mining operations in the U.S. and abroad, including Salt Mines, Silica, Zeolites, Barite, Aggregate, Talc, and Feldspar. We also finance precious metal operations mining, including Gold, Silver, Platinum, Palladium, Iridium, and more. Let the experienced underwriters at Equipment Leases customize a lease funding for your mining operation with customized terms up to $50-million to make your project a success

Leasing or financing

You can either lease or finance the equipment needed; each one has its benefits.

Leasing equipment allows you to change out older models for more up-to-date and innovative equipment that works better. It also allows you to free up your business cash for expanding your business and taking care of day-to-day needs. You do not lose money with depreciation the way you do when you buy the equipment. The downside to leasing is when the lease is up; you need to trade it in or purchase the equipment.

Financing your equipment means that it is yours and can be considered a company asset when it is paid off.

Whether you lease or finance will depend on several factors regarding your business. Some of those factors are:

  • Down payment
  • Affordable monthly payments
  • Your company’s credit rating
Mining Equipment

Some of the Popular Mining & Fracking Equipment Brands We Finance

You can apply online, get approved, and get funded. If you have any questions regarding equipment, leasing, or financing, contact us. We would love to help you get the equipment you need.

Equipment Leasing Success

Case Study

Mining & Fracking Equipment Lease

We secured financing for 4 Komatsu 250 ton trucks used in the surface mining industry.  The trucks were purchased at auction and paid for in cash.  The owner rightly wanted to be reimbursed for his expense and leverage the asset and the residual value to have a lower payment and money in the Bank.  Lenders are very resistant to financing anything used – especially in the mining industry, due to heavy use, wear, and tear.  We were able to fund 100% of the cost with no money down.  The term was 48 months with a Capital Lease structure and a balloon payment fixed at 25% to have a lower amount. 

We also look to make sure revenue-generating equipment cash flows on day one!!!!