Last week we were approached by a West Australian Mining Company to finance a Caterpillar Articulated Dump Truck. This company required an additional Dump Truck, in order to meet increased output of the mineral they are exporting overseas.
This was a particularly difficult deal to work on, as this company had many related entities, holding companies, multiple directors and unit trusts – some entities hold the equipment assets whilst other entities are involved in the turnover of the enterprise. This type of interrelated company and trust set up is not uncommon for Mining Companies in Australia, but Mining Equipment Finance requires the eye of an experienced Finance Consultant when assessing deals for Dump Truck Finance.
To make this easy on everyone, one of our senior staff members had an in-depth meeting with clients Accountant to work out the family tree of the related companies and the subsequent income flows. From there, we were able to submit the relevant information to our Credit Team in a manner that made sense and mitigated any additional questions that could have jeopardised the deal.
This particular Mining Company had mentioned at the start, that this Dump Truck was required immediately, however an additional 3 trucks would be required in 3 months time. As this is the case, we submitted the deal to credit under a $2M master limit agreement whereby the client would be able to purchase the relevant Dump Trucks up to a limit of $2M. This deal was approved by credit within 48 hours and client has drawn down on the first Dump Truck and is now looking for the additional units.
The feedback from the client has been positive as they can fulfil the supply agreements they have in place with the overseas company. The acquisition of this additional machinery will allow client to increase their output on the mine site. We look forward to assisting this company in all Machinery Finance requirements going forward – whether the machinery financed are Excavators, Water Trucks, Dozers or Crushing Plants etc. etc.
Mining Equipment Finance is an area of finance that is extremely specialised and can only be handled by experienced industry people. The team at Heavy Vehicle Finance has the level of expertise to handle these complex transactions and will continue to help Australian companies well into the future.