Energy services and heavy construction in Alberta run on equipment: rigs, vacuum trucks, excavators, crushers, cranes and the trucks that move them. The order book recovered faster than bank appetite for the sector, and contractors with full schedules are financing growth against the iron they already own.
How equipment is valued
We lend against orderly liquidation value, the amount a unit would bring in a managed sale over a few months, determined by an independent equipment appraiser with auction data. It is lower than fair market value and far lower than replacement cost, which is why advance rates are expressed against it. Well-maintained late-model equipment with strong auction demand carries the highest advances.
Common structures
- Term loans of 12 to 36 months to purchase new or used equipment, with payments sized to the equipment’s working life
- Refinancing owned equipment to release working capital
- Sale-leaseback: the lender buys the equipment and leases it back, keeping it on the job
- Fleet-wide facilities with a borrowing base across all units
What to prepare
A unit list with serial numbers, hours or kilometres, and location; existing liens from a PPSA search; and the contracts or master service agreements that will put the equipment to work. Equipment term sheets are among the fastest we issue because the collateral speaks for itself.
Have a situation like this? Tell us about the deal and a principal will respond within two business days. Cascade lends to businesses only, in Canadian dollars, and every rate we quote is an annual rate.
