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