Leasing 101 – Mining Equipment

Groundbreaking Financing Solutions

Procuring mining equipment is often accompanied by the heavy burden of financing. After the tedious work of prospecting has paid off, and a valuable opportunity is present, there is often not enough cash on hand to support the setup costs of the project.

Compounding this problem is the fact that, right now, securing a loan is becoming more difficult as banks around the world tighten their lending standards. Bureaucratic red-tape has blinded many commercial lending institutions and the imposed formula for decision making has rendered them incapable of understanding the true value of many new projects. With the consistent (and sure to continue) appreciation of precious metals, many operators have found that it pays to partner with an equipment finance specialist that understands the mining industry to help improve project cash flows and meet target goals.

Whether you need a shuttle car, an underground loader, analytical tech solutions, a fleet of all-terrain dump trucks or the latest Long Wall Continuous Miner, Clarity Leasing will take the hassle out of finding a suitable and flexible financing solution. Clarity Leasing’s team has the experience and relationships to advocate your position to major funding sources and secure the right lease on attractive terms and conditions.

As your business grows, banks may want you to secure loans against real estate, restricting your options in the future. Yet in most cases, Clarity Leasing can secure the equipment loans against the mining equipment itself, without putting your personal property at risk.

The Benefits of Leasing

  1. Leasing provides companies with a way to manage equipment they may not want long term
  2. Leasing gives companies financial access to newer technologies when they need it
  3. Leasing can be classified as an operating expense on your income statement and not as debt on your balance sheet, reducing the impact on debt-to-equity ratios and liabilities, which can enhance a company’s future borrowing capability
  4. Cash can be reserved for other uses such as R&D, emergency expenses, and acquisitions
  5. Income taxes can in many cases be drastically reduced

Companies are often surprised at how simple and effective leasing is for both major and minor mining equipment purchases.

We know that each situation is unique and complex, we work with you to find the right fit for your project.

Call Us for a free quote, or Apply On-line Now.

Ryan Clarke, MBA
Manager, Business Development
Direct: 604-227-0640