“Engaging with NFS was hassle-free and we were happy that we found a solid partner to fund such a large and important deal,” said Todd Tackett of CRS. NFS has had prior experience funding deals this large so when CRS brought along this deal, it was no problem at all.
Construction and Reclamation Services LLC (CRS) is an early stage environmental recovery company that rebuilds lands that have been damaged by mining operations. Looking to protect and grow its 63 employee base, CRS needed to secure capital, which can be difficult as an early stage company. With the amount of needed capital being $8.2 million, the challenge was significant.
- CRS needed to secure funding for new equipment to maximize employee efficiency and reduce downtime, but had limited credit history.
- Securing financing with NFS allowed CRS the ability to complete projects ahead of schedule and grow its employee base
Below is the story of how CRS was able to work with NFS Leasing to support the large transaction and find a custom financial solution to increase its productivity.
Construction and Reclamation Services LLC (CRS) has only been in business for a short period of time. Being a spin-off of a mining company, CRS knew there was a need in the industry for a reclamation company to better service mining sites and the environment.
As a reclamation company, CRS takes land that has been stripped down for mining and reclaims it, using it to plant trees, create lakes and reservoirs, and/or repair the land back to its original state. This is an important need for mining companies, as many states require a reclamation plan to approve a mining site.
Being a newly formed company, the equipment it had was old and run-down, not to mention inefficient for some of the jobs it was looking to complete. Due to the constant equipment repairs, employee productivity was not at its desired level. With its employee output decreasing, the CRS team was advocating for better equipment. The equipment would need to be bigger, faster, and stronger to allow CRS to take on multiple large-scale projects at once.
As an early stage company, CRS found itself having trouble finding a suitable financing partner. It struggled to qualify for the selective criteria that many financial institutions require, and also struggled to find a partner willing to finance a deal of this size.
CRS knew that if it wanted to establish itself as a reputable reclamation company, it needed flexible financing and fast. The financing needed to be flexible enough to fit into CRS’s long-term plans and it needed to be completed quickly. Obtaining the equipment lease was the first step of its solution, the next key step would be to find the right equipment.
In the course of the financial solution search, CRS identified NFS Leasing as a potential partner and quickly realized that NFS was the right partner for CRS. NFS was uncomplicated and easy to work with and possessed the capabilities to fund the large-sized deal. NFS attentively listened to CRS’s story and plan and was able to find a solution to finance its $8.2 million in equipment.
The interactions between CRS and NFS Leasing were straightforward, as both parties were focused on finding a solution. “I had a great conversation with NFS on what we wanted to do with the equipment and what we were seeking in a lease agreement, and thankfully, NFS helped us find a solution.” said Todd Tackett of CRS.
The experience was extremely positive. He went on to say, “While I have been in the mining industry for 24 years, I had never done a deal this large. Engaging with NFS was hassle-free and we were happy that we found a solid partner to fund such a large and important deal.” NFS has had prior experience funding deals this large so when CRS brought along this deal, it was no problem at all.
In the end, the new equipment allowed CRS’s employees to operate at maximum efficiency, with almost no downtime dedicated to repairing old machinery. Because of this, it was able to retain a more committed employee base. Currently, CRS has 63 employees but expects that it will increase its employee base by 15% due to the new equipment.
CRS was able to utilize the equipment across multiple sites with one site receiving the bulk of it. This site was for a project, that Tackett said, “Would typically take two to three years to complete. But now with the new equipment and the increased employee productivity, we expect it to be complete within one year.” That is a 100%+ planned scheduled improvement, for that one site.