Leasing finance for iron ore crushing equipment

CG Commercial Finance (CGCF) has completed a $2 million operating lease deal to support a multinational which was looking to develop a long-term rental program for buyers of iron ore crushing equipment, which will now be rolled out to the entire client base following a successful pilot finance program.

The vendor in question is an international full service provider of sustainable minerals and cement technologies, equipment and solutions. Due to budgeting restrictions, one of the vendor’s customers (a top 20 international steel producer) was unable to allocate capital expenditure funding for the purchase of the vendor’s equipment solution in 2015.

CGCF’s vendor services team created a pilot rental program for the ore crushing equipment, allowing their customer to acquire the equipment now and immediately reduce the cost of production. CGCF and the vendor collaborated with the customer’s procurement team to refine the structure and documentation, and provide the client with maximum operational and usage flexibility.

Scott McCullum, president of CGCF, said: “This transaction is an important example of how CG’s extensive experience and capabilities completing large, complex finance transactions positively translates to vendors. We provide the vendor with a powerful tool to meet their customer’s needs thereby empowering them to sell more and sell it sooner.”