“NFS was very flexible when working through the terms. They let us know what they were willing to do for us, how it needed to be done, and explained why it needed to get done. Having structured multiple deals with them, it’s safe to say I appreciate their partnership,” said Daniel Bunn, Owner of Mega Highwall Mining.
It is difficult to be a new player in an established market and, when cash flows are limited, barriers to growth can be difficult to overcome.
- Limited cash flow can be a barrier when a company requires expensive equipment to deliver the right service to its customers.
- In a volatile industry, securing financing requires flexibility and understanding on the part of the financial partner, which translates into impressive revenues and profit margins.
This story describes how a company conquered these challenges and found a partner to help it grow.
Mega Highwall Mining LLC. (Mega) is a coal mining company founded in 2015. It operates both ADDCAR and Superior Highwall Mining Systems. It prides itself on its machines, maintains state-of-the-art availability in the industry and is dedicated to maintaining safety standards.
Mega is experienced in operating under adverse conditions including steeply dipping seams, augured works, extreme climate, and many more. Mega operates its machinery on land that once served as a mining site. The company’s automation means not sending in miners underground to mine. Mega makes mining safer for workers and the environment.
To grow their business, take on more projects and meet customer demand, Mega would need more highwall miners. However, new highwall mining equipment is massive and can cost upwards of $2 million, usually more. Such an expenditure would adversely affect other business expansion priorities and overall cash flows.
A decision to rebuild miners instead of buying equipment would be more economical. Securing the financing needed to reconstruct the miners was essential to maintaining the company’s liquidity.
Mega knew it needed a true financial partner. One that could understand that without the funding, it could face a financial issue of little or no liquidity in the business. Without this equipment, it would not be able to offer quality service to its customers.
NFS Leasing is the partner it turned to, and together the companies worked to understand the unique situation and provide funding for the reconstruction of the miners. Mega engaged with NFS through a broker. Due to its unique circumstances and the need to rebuild the highwall miners, Mega was pleased to have found a flexible financial partner like NFS to help solve these issues.
At the beginning of the process, Mega experienced growth challenges, but was happy to have NFS Leasing as a partner to help overcome these challenges. “NFS was very flexible when working through the terms. They let us know what they were willing to do for us, how it needed to be done, and explained why it needed to get done. Having structured multiple deals with them, it’s safe to say I appreciate their partnership,” said Daniel Bunn, Owner of Mega Highwall Mining.
Clear communication enabled Mega to complete its funding and focus on what needed to happen next.
Mega welcomed the expertise and initiative of NFS Leasing and got the financing fast. It looks forward to reconstructing all five of its highwall miners and supporting its clients. As well as seeing the return on its investment to put money back into its business.
As a matter of fact, Mega has other growth plans and has returned to NFS Leasing as a partner to structure an additional contract.
It can be challenging for a business to grow on its own, but with the right partners, it can grow and exceed its own expectations.