Construction - Aggregate - Crusher/Screen/Conveyors
This aggregate crushing company had only been in business for 3 years, but the owner had decades of industry experience, having worked for his family’s company his entire life. Specializing in the aggregate, dump truck, and demolition business, the company had 15 employees and was renting most of their equipment.
As a new company with limited credit, the owner had started out by renting his equipment. Rental rates for a screen machine crusher, track-mounted screening plant, and conveyors were costing them $30k per month. After a while, the dealer needed to either convert this equipment into a purchase or take the equipment back so they could sell it. The customer had a lucrative long-term contract with a local city to crush and sell limestone for $6 a ton. The limestone was dumped on the customers yard for free by local excavation contractors.
The customer needed the equipment to fulfill his contract with the city and did not want to give up the rental payment equity built into the equipment up to this point. However, because the customer had limited credit, the dealer was unable to finance the rental purchase option (RPO) and the local bank declined the request for credit.
They needed a lender that would:
Because CCG understands the industry and was able to recognize the experience of the company owner and understand the value of the equipment and the contracts, we were able to finance the purchase of all the equipment.
We structured a loan that accomplished the following:
The company continues to grow and has recently purchased additional equipment.