Case Study: Short-Term Loan Financing For Stump Grinder Machinery Purchase

Arborist equipment (such as stump grinders) is worked hard every day. Equipment often has a short lifespan and is expensive to replace. When we partner with arborists to secure a loan for a machinery purchase, we look at the:

• Asset’s lifespan.
• Loan length.
• Early payout options.
• Interest rates relevant to that specific equipment.

Our financial services are centred around what will be the most profitable result for our clients. As dedicated commercial, financial advisors, the last thing we want to see is our clients paying for a loan well after the equipment has been retired.

The Challenge

Arborist Equipment (Asset) Lifespan, Cost & Machinery Loan Length

During discussions with our clients in the arboriculture industry, we have noticed a common thread. Their prior equipment loans were far too long – well beyond the lifespan of their equipment. For safety, some gear needs replacing annually while other equipment may last several years(*1). Months or years after the equipment was retired or replaced, they were still paying the loan. In some cases, they had the money to pay the loan out but were bound to the loan length.

Arborists already have lofty (excuse the pun) costs such as insurance premiums to pay in order to do their work. An equipment loan should not be a large burden. It should be beneficial for the business and aid in its further growth.

The Solution

Stump Grinder Financing & Complete Financial Services

For equipment financing to work for niche industries such as arboriculture, financing must turn over as quickly as equipment. Loans also need to be flexible and relevant to the equipment being purchased. We found a way to turn equipment, gear and machinery over in a more effective way for our client. This ensures they can keep their tools in good working order and safe (*2).

Outcome

Financial Advisors Are a Vital Part of Growing Businesses

The flexibility in the loans we secure for our clients gives them options relating to:

• Paying a loan out early.
• Discussing changing the loan terms.
• Adding new equipment purchases and much more.

Our clients have always appreciated the efforts we go to when providing loan options to them. To present you with the loan that suits your business, we consider:

• Your needs and financial situation.
• The equipment to be purchased.
• The lifespan of the machinery.
• How the loan will be finalised down the track.

We are proud to have become a vital part of our client’s growing businesses and that they feel comfortable calling us if they have any new requests or questions.

Innovative Financing Solutions for an Ever-Evolving Industry

We started working in commercial finance in the 1980s. Since then, we have seen the equipment and technology arborists use change time and again(*3). In addition to equipment wearing quickly, the industry itself is ever-evolving. One of the first arborist equipment loans we assisted with financing was a piece of machinery made of three individual pieces. Nowadays, it is only one. Between then and now, that particular piece of machinery has undergone countless changes as technology and new methods have been developed.

Give Mark O’Keeffe (owner) and the team a call on (02) 9042 0777 or come into our office at 89 Macquarie St, Sydney.

We would be more than happy to sit down with you and discuss ways we can help your business grow.

References

*1. Pasteris, J. When to Retire Climbing Gear. Recreational Equipment. 2022.
*2. Lescohier, J. Stump Grinder Maintenance. 2010.
*3. Vermeer Corporation. Arboriculture Through The Ages (the 1970s To Today). 2022.