Case Study

$6.5 Million Komatsu Dump Truck Financing in Ohio

Supporting an Open-Pit Mining Operation with Auction Equipment

Discuss Your Project

Industry Mining

Funding Amount $6,500,000

Term 36 Months

Financing Solution Tailored to both the equipment and the borrower’s situation.

Project Overview

An Ohio-based open-pit coal mine acquired four used Komatsu 100-ton dump trucks at auction to support ongoing operations. However, due to both the industry and the age of the equipment, traditional lenders were unwilling to provide financing.

Commercial Funding Partners secured $6.5 million in financing, allowing the company to recover its cash position and continue operating efficiently.

The Challenge

The company made a strategic purchase at auction but quickly encountered financing barriers.

Lenders were hesitant for two primary reasons: the coal mining sector and the fact that the equipment was used and purchased outside of a traditional dealer channel. Despite the equipment being essential to operations, financing options were extremely limited.

Key challenges included: 1. Industry stigma surrounding coal mining 2. Used equipment with no traditional vendor backing 3. Auction purchase structure complicating lender approval 4. Need to restore liquidity after a large cash outlay

The Solution

Commercial Funding Partners delivered a financing solution tailored to both the equipment and the borrower’s situation.

We secured $6.5 million in financing for the four Komatsu 100-ton dump trucks, enabling the company to refinance the auction purchase and redeploy capital back into the business.

1. Capital Lease Structure: Designed to give the client ownership at the end of the term while preserving near-term cash flow. 2. Milestone-Based Funding: CFP coordinated progress payments to multiple vendors and aligned them with project build phases, eliminating bottlenecks and keeping the timeline intact. 3. Soft Cost Inclusion: CFP structured the lease to include a significant portion of soft costs, which covered installation, mechanical, and electrical components typically excluded by traditional lenders. 4. Rapid Resolution of Equipment Failure: When a critical piece of equipment broke during installation, CFP worked swiftly with the customer and vendor to replace the unit without disrupting the project timeline.

The structure was designed to:

1. Finance used, heavy-duty mining equipment 2. Accommodate an auction-based acquisition 3. Work around traditional lender restrictions 4. Improve the company’s post-purchase liquidity

Results

With financing in place, the company strengthened its financial position while maintaining full operational capacity.

Results included:

$6.5 million funded

Financing secured on four used Komatsu dump trucks

Immediate improvement in cash flow and liquidity

Continued support for active mining operations

Successful execution despite industry and asset challenges

Why This Transaction Matters

Equipment financing doesn’t stop at new assets or traditional industries.

Transactions involving used equipment, auction purchases, or industries facing lender resistance require creative structuring and specialized capital sources. This deal highlights how the right financing partner can unlock value from assets others overlook.