Leasing Mining Equipment in 2021

Leasing Mining Equipment in 2021
Leasing Mining Equipment in 2021

Every day we use mined minerals in nearly every product that we consume. Modern society would not be possible without the mined minerals. However, to operate a mine and move equipment around the site, heavy-duty equipment is required. Mining equipment financing is available to you if your company requires crushing equipment, underground excavators conveyors blasters or blasters. Equipment Finance can help you to ease your financial burden by leasing your equipment.

Why lease your mining equipment?

Equipment financing can help you maintain your cash flow and keep your company solvent. Leasing is a viable option. Let’s take a look at what leasing can do for your company.

  • There are no upfront fees
  • You don’t have to sign long-term contracts
  • There are no year-after-year financing obligations
  • Equipment insurance is covered
  • You can swap out your old equipment to get the most recent technology
  • You have the option to choose your preferred suppliers
  • You have significant tax benefits
  • There are VAT deductions
  • Finance can be used to finance an unlimited number of items
  • Refinance existing equipment to increase capital
  • At the end of your contract, you have the option to sell or lease back the vehicle.

When you look at the above benefits, leasing your mining equipment is a better financial option than buying it outright.

What is Equipment Leasing?

Contractors and mine owners can lease the equipment they need to operate their businesses. You can lease equipment for a specified period, whether you require specialist machinery, vehicles, tools, or both. After that, you have the option to either return the equipment or renew the lease. Equipment leasing is not the same as equipment financing, where you take out a loan to finance the equipment. You finance the equipment by purchasing it, paying it off over a set period using the equipment as collateral. Once the mining equipment loan has been paid off, the equipment is yours.

However, when leasing equipment, the machine does not become yours after the contract ends. You have three options. Your monthly fee/payment usually includes your interest and fees, just like equipment financing. You are essentially entering into a lease agreement, not purchasing the equipment, with the equipment supplier or owner.

How can leasing help your business increase productivity?

It is cheaper to lease your mining equipment than buying it. You have the choice to either renew your lease, return or purchase the equipment at the end. This allows for flexibility in your equipment and business operations, as well as allowing you to spread out the costs over a period of time. Many service agreements include a service agreement that eliminates the need for an internal maintenance team.

Your business will be more competitive and productive if it has the most current technology. The right equipment will make your business more efficient and productive, and therefore more profitable. Equipment Finance can help you get the edge your business needs in 2021 by leasing your mining equipment.