Equipment loan · Mining services
Equipment loan for mining services
Mining services finance is contract-driven lending for the plant, haulage and light vehicle fleets that support mine sites, structured so repayments and asset terms line up with the length of the contract being serviced.
How an equipment loan works for mining services
Loaders, water carts, lighting towers and service plant for mine sites are financed against the asset, which keeps pricing sensible even for a business with a short trading history but a strong contract. The key decision is term: a five-year loan on a machine dedicated to a two-year scope leaves you with repayments and no revenue if the contract is not extended. We would rather set a shorter term with a balloon and refinance on renewal than have a client carrying idle plant.
The cash-flow pattern we plan around
Large mobilisation spend up front, then monthly claims to a major mining client on 30–45 day terms for the life of the contract.
What mining services typically fund
- Mine-spec light vehicle fleets
- Loaders, water carts and support plant
- Service trucks and workshop equipment
- Mobilisation and camp establishment costs
Equipment loan for mining services: the numbers
| Typical amounts | $5,000 – $5,000,000 |
|---|---|
| Term | 12–84 months |
| Indicative rates | 6.9% – 16% p.a. |
| Repayments | Monthly |
| Speed | Same day to 48 hours for low-doc |
| Documents mining services usually need | ABN and contract or letter of award · 12 months of bank statements and latest financials · Fleet or plant schedule with quotes |
Rates are indicative, change without notice and depend on the lender, product, asset, term and your credit profile at the time of application. They are not an offer of finance. Comparison rates, where shown, are true only for the example given.
Key terms
Mining services equipment finance
Mining services equipment finance is secured lending for the vehicles and plant used to service mine sites, where the finance term is set against the length of the client contract rather than the maximum life of the asset.
Contract-matched term
A contract-matched term is a finance term deliberately set no longer than the contract generating the income, reducing the risk of carrying repayments on idle plant after a scope ends.
What is equipment finance?
Equipment finance is any loan or lease used to acquire business equipment, with the equipment typically serving as security. The main structures in Australia are chattel mortgages, finance leases and rentals.
Low-doc equipment finance
Low-doc equipment finance approves smaller amounts (often up to $150,000–$250,000) without full financials, relying on ABN age, GST registration, credit history and sometimes a property-owner declaration.
Questions from mining services
How is mining services equipment financed against a contract?
Lenders match the finance term to the length of the mining contract being serviced, with balloons or operating leases used so the repayment fits the contract and the equipment can be returned or refinanced at the end. Plant, haulage, light vehicle fleets and site accommodation are all financed this way. The signed contract is the key document.
Can I finance a fleet of mine-spec utes and light vehicles?
Yes. Fleet finance covers mine-spec utes, buses and light trucks with the safety fit-out included, under a master facility that lets vehicles be added as crews grow, often with fleet pricing and a rental or lease option so vehicles are replaced at the end of each contract.
How do mining contractors fund mobilisation and monthly claims?
A working capital facility or invoice finance against monthly claims to the mining client covers wages, fuel and accommodation until claims are paid 30 to 45 days later. Because the debtors are large miners, invoice finance is well priced and can advance up to 90 per cent of each claim within a day or two.
What do lenders want to see from a mining services business?
The contract or purchase order with the mine, a history of claims paid in the bank statements, financials for larger amounts, the equipment list and evidence of site compliance. Lenders like contracted work with major miners, so a broker presenting the contract and margins clearly speeds approval.