Financing Equipment for Publicly Traded Companies

Publicly traded companies — whether in mining, construction, energy, or manufacturing — often need high-value equipment to maintain productivity and stay competitive. Rather than tying up large amounts of capital upfront, many choose equipment financing to preserve cash flow, optimize tax benefits, and upgrade to the latest technology.
Here’s a quick guide on what kinds of equipment can be financed and how the process works.
What Types of Equipment Can Be Financed?
Publicly listed companies can finance almost any income-producing or mission-critical equipment, including:
✅ Heavy Machinery & Vehicles
Excavators, bulldozers, haul trucks, cranes, graders, loaders, forklifts.
✅ Production & Processing Equipment
Crushers, grinding mills, screening plants, conveyors, specialized industrial machinery.
✅ Technology & Software Systems
GPS tracking, fleet management, autonomous equipment upgrades, communication systems.
✅ Support & Safety Equipment
Generators, water trucks, fuel storage, environmental monitoring units, ventilation systems.
✅ Specialized Industry Assets
Drilling rigs, medical diagnostic devices, energy storage systems, renewable energy installations.
Benefits of Financing Instead of Buying Outright
Preserves Working Capital: Cash stays available for other strategic investments.
Flexible Terms: Payments can match project revenue cycles.
Tax Advantages: Payments may be tax deductible.
Asset Management: Easier upgrades to newer technology.
Steps to Secure Equipment Financing
Here’s a typical roadmap for a publicly traded company looking to finance equipment:
1️⃣. Identify Equipment Needs
Outline what equipment is required and how it will generate revenue or cut costs.
2️⃣. Get Board or Management Approval
Significant capital expenditures often need internal approvals and, for large deals, board resolutions.
3️⃣. Choose a Financing Partner
At Absolute Exposure, we work with lenders and lease providers who have extensive experience supporting publicly traded companies with high-value equipment financing solutions.
4️⃣. Select the Right Structure
Options include:
Operating lease (for flexibility)
Finance lease / capital lease (ownership at end)
Term loan (purchase outright)
Sale-leaseback (unlock cash from existing assets)
5️⃣. Provide Financial Information
Audited financials, credit rating, and cash flow forecasts.
6️⃣. Finalize Terms & Close the Deal
Negotiate payment schedule, rate, and end-of-term options. Complete documentation and deploy funds or lease.
7️⃣. Manage & Report
Ensure compliance with accounting standards (like IFRS 16) and disclose material financing in public filings as required.
Financing is a strategic tool that helps publicly traded companies stay competitive without straining cash reserves. With the right financing partner, companies can secure the equipment they need today — while planning for tomorrow’s growth.
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