Supporting an Open-Pit Mining Operation with Auction Equipment
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 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:
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.
With financing in place, the company strengthened its financial position while maintaining full operational capacity.
Results included:
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.
