The Sunday Mail
Business Reporter
A LOCAL firm that deals with heavy equipment for the mining, agriculture, construction, forestry and transport sectors has adjusted its product offering by developing a facility of hiring out the equipment to businesses that seek to manage costs.
It is believed that in an illiquid environment where most companies, especially those in the mining sector, are struggling to get money to mechanise their operations, such facilities could provide the much-needed relief.
Although Hallmark Services specialises in Komatsu and Caterpillar brands, it also provides lower-tier brands that are relatively considered affordable.
Some of the key equipment being hired to the mining sector are bulldozers, hydraulic excavators, wheel loaders and dump trucks; recycling equipment such as mobile crushers, mobile soil stabilisers and mobiletub grinders.
The forestry equipment ranges from harvesters, forwarders, harvesters and fellers.
There are also utility equipment such as crawl loaders, midi wheel loaders, mini excavators and forklift trucks.
Hallmark Services managing director Mr Faraimunashe Matina recently indicated that while the company’s products are suitable for all market segments, the company is specially angling for small and medium scale enterprises, particularly small-scale miners, since they are currently finding it difficult to get equipment on favourable terms.
The products come with product back-up and an optional fleet management system that makes it possible to monitor the performance and efficiency of the equipment.
“The equipment that is mainly used by small-scale miners includes front-end loaders, escavators and dump trucks, but it really depends on the nature of the mine and what they will be producing.
“When financing arrangements are required, we conduct due diligence of the project in order to determine its potential in terms of repayments. It does not take long though as we have experts within our organisations that can expeditiously do that,” said Mr Matina.
He further noted that the company intends to broaden its scope under special funding facilities with financiers.
Hallmark has roped in a financier whose facilities can extend to more than five years.
“We are trying to bring in more partners that can provide flexible terms for small players.” added Mr Matina.
Most of the finance facilities that are available on the open market are short term and they attract punitive interest rates.
Companies are increasingly becoming innovate and are structuring facilities that suit their clientele.
