Earn 15% - 17.%+ Yield Financing Coal Mining Equipment
by Ron Smith
(Chicago, Illinois U.S.A.)
The MEC Group, Inc. offers equipment financing/leasing and equipment procurement to mid-size coal mine operators throughout the United States.
Since our inception in 2011, The MEC Group has secured over $35MM in equipment finance/lease volume, so that its customers can maintain their competitive edge. Our lending partners have enjoyed strong yields, which average between 15% and 17% with the average transaction size being $1.781MM. Since most of these transactions were structured as Operating Leases, our lending partners receive additional tax and depreciation benefits. Subsequently, MEC receives a broker fee from it’s lenders, ranging from .65% - 2% of the equipment cost, depending on the size of the transaction.
Because of compression within large “coal conglomerates” like Peabody Energy, CONSOL Energy and Alliance Resource Partners; just to name a few, mid-size coal operators have an immediate opportunity to increase coal production to meet demand. Thus, MEC also views this as an opportunity to expand our business, while supporting an industry which has been the backbone of America for over 150 years. It is an industry that will also continue to lead the way for America’s energy independence, THE COAL INDUSTRY.
Currently, MEC is dependent on our lending partners, their credit windows and their appetite for the collateral and industry. Subsequently, MEC is seeking $3,000,000 of investment capital in order to expand our business by taking control of the means in which we offer our services. The investment capital would be utilized in the following manner.
Immediate access to capital in order that MEC can directly fund our customer’s equipment finance/lease opportunities.
Leverage investment capital to gain access to additional investors and/or lines of credit.
When identified and appropriate, acquire used (core) mining equipment for refurbishment and sale.
Stimulate marketing campaigns by enhancing our electric and print marketing collateral.
Establish corporate office space.
Ramp-up a sales and operation team (initially 2-3 personnel).
Minimal salary(ies) for executive personnel.
In return for capital, the investor(s) would receive 80% equity in The MEC Group.