Equipment Leasing: A Preferential Mechanism for Strategic Procurement

Equipment Leasing: A Preferential Mechanism for Strategic Procurement

Equipment leasing is a loan where the lender buys and owns equipment and ‘rents’ it to a business at a flat monthly rate for a specified number of months. At the end of the lease, the business may purchase the equipment for its fair market value (or a fixed or predetermined amount), continue leasing, lease new equipment or return it.

Procurement of HEMM has been through business equity or corporate loans. Due to the increasing equipment production costs, obsolescence of owned equipment and limited sources of outside debt capital, mining companies are considering alternative options. The most promising of these ‘alternative’ methods is leasing the equipment from custom operators.

As profitability of leasing equipment is subjected to multitude challenges, Beroe’s Mining expert Arun MV addresses steps to analyze and quantify the trade-off between leasing and purchasing of mining machinery, so that mining companies can make appropriate procurement decisions.

About the speakers:

Arun MV
Arun is a Mining expert at Beroe Inc. In his one year at Beroe he has gained extensive knowledge and expertise in developing procurement insights along different aspects of mining value chain. He has authored several thought leadership papers, to name couple of them: “Rubber price sensitivity and Conveyor belts” and “Inventory Management & Asset Utilization- Key to Procurement Success”..