Understanding Crane Financing
Crane financing provides construction companies, manufacturers, and logistics operations with access to essential lifting equipment without the massive capital outlay required for purchase. Given that cranes can cost anywhere from $200,000 to over $2 million, financing is often the most practical path to acquisition.
Types of Cranes and Financing Considerations
Tower Cranes
Tower cranes are essential for high-rise construction projects. These massive machines can cost $300,000 to $1.5 million or more. Financing terms typically range from 5-7 years, with lenders requiring detailed project plans and strong contractor credentials.
Mobile Cranes
Mobile cranes offer versatility for various projects. All-terrain cranes, rough terrain cranes, and truck-mounted cranes range from $200,000 to $1 million. These are often easier to finance due to their flexibility and strong resale market.
Financing Options for Cranes
Equipment Loans
Crane loans allow you to purchase and own the equipment. Benefits include building equity, Section 179 tax deductions, complete control over equipment, and no usage restrictions. Typical loan terms: 5-10 years, 10-20% down payment, fixed or variable rates.
Equipment Leasing
Leasing provides access to cranes without ownership. Advantages include lower upfront costs, easier qualification, flexibility to upgrade, potential maintenance inclusion, and off-balance-sheet financing. Lease terms typically run 3-7 years with various end-of-term options.
Conclusion
Crane financing opens doors to essential lifting equipment that might otherwise be out of reach. Whether you choose loans or leasing, new or used equipment, the key is finding financing that aligns with your project needs, cash flow, and long-term business goals.
Robert Anderson
Equipment financing specialist with years of experience helping businesses acquire the equipment they need to grow and succeed.
