Start with what is already in the yard
MFG was introduced to Tumeke Civil in 2025 as the owners planned to replace ageing excavators. Several existing loans carried balloons. The monthly repayments had worked for the business, but the owners wanted to understand how those final balances would affect the next trade. We mapped each machine against its finance balance and likely sale value before committing to the replacements.
Excavators that work hard accumulate hours and maintenance costs. A balloon can leave a substantial payout just when the owner would prefer to trade a machine on. We put the scheduled debt beside a realistic trade estimate for each unit, so the owners could see where there was equity and where a sale might offer less room than the monthly payment had suggested.
Six replacements, planned progressively
Working with Marco at Brisvegas Machinery, Tumeke brought in six brand new Kobelco excavators across the 10 to 38 tonne range. The old machines were traded as replacements arrived. Trade proceeds cleared the loans on those machines, with remaining equity reducing the amount that needed financing on the new excavators. Each transaction formed part of one fleet replacement plan.
Rather than treat all six excavators as a single finance event, the replacement unfolded as individual machines became ready to trade and the new units came through. Each old-loan payout and trade allowance informed the next approval. Where a trade left equity after the payout, it reduced the amount needed for its replacement.
A cleaner position for the following cycle
MFG compared the monthly repayments with and without balloons on the replacement fleet. Tumeke was comfortable with the higher regular commitments and chose to fund most of the new excavators without balloons. Paying down more principal during the term gives the owners a clearer path to equity and more flexibility when the next machines are due to trade.
The owners could see the actual difference between the balloon and no-balloon repayments and make a deliberate choice about what the business could carry. Most replacement excavators were financed without balloons. The aim is to build equity more steadily and make the following trade less dependent on a strong resale price at precisely the end of a loan term.
