When your construction or industrial business in Canning Vale needs to expand operations, purchasing a crane represents a significant investment. Understanding your equipment finance options can make the difference between stretching your cash reserves thin or maintaining healthy cash flow while acquiring essential machinery.
Understanding Equipment Finance for Crane Purchases
Equipment finance provides businesses with the capital needed for buying new equipment or upgrading existing equipment without depleting working capital. For crane purchases, this financing solution allows you to spread the cost over time while putting the machinery to work immediately.
The loan amount for crane purchases typically ranges from $20,000 to several million dollars, depending on the type and size of crane required. Your business can access equipment finance options from banks and lenders across Australia, each offering different terms and conditions.
Types of Equipment Finance Available
Several finance options suit different business needs when acquiring cranes:
• Chattel Mortgage: Your business owns the crane from day one, using it as collateral for the loan. This option offers tax benefits and typically features competitive interest rates.
• Hire Purchase: You make fixed monthly repayments over the life of the lease, gaining ownership at the end of the term. This structure helps manage cashflow effectively.
• Operating Lease: Rent the crane for a specified period without ownership, ideal for short-term projects or when you need to upgrade regularly.
• Finance Lease: Similar to hire purchase but with different tax implications and residual value options.
Factors Affecting Your Crane Finance Application
When applying for equipment finance, lenders evaluate several key factors:
- Business Financial Health: Your company's cash flow, profitability, and debt-to-income ratio
- Crane Specifications: Age, condition, and resale value of the crane you're purchasing
- Industry Experience: Your track record in construction or related industries
- Deposit Amount: Higher deposits often secure more favourable interest rates
- Loan Term: Longer terms reduce monthly payments but increase total interest paid
Streamlined Application Process
Modern commercial equipment finance applications have become more efficient. The streamlined application process typically requires:
• Business financial statements from the past two years
• Details of the crane you intend to purchase
• GST registration and ABN verification
• Director guarantees for company applications
• Insurance quotes for the equipment
Most lenders can provide conditional approval within 24-48 hours for straightforward applications, with final approval contingent on equipment inspection and insurance arrangements.
Choosing the Right Crane for Your Business
The type of crane you select impacts both your financing options and business operations. Common crane types include:
• Mobile Cranes: Versatile units suitable for various job sites
• Tower Cranes: Fixed installations for construction projects
• Crawler Cranes: Heavy-duty machinery for demanding applications
• Truck-Mounted Cranes: Combined transport and lifting solution
Like other specialised machinery such as excavators, tractor units, graders, and dozers, cranes retain value well when properly maintained, making them attractive collateral for lenders.
Managing Your Equipment Finance
Successful crane ownership through equipment finance requires careful planning:
Maintenance Considerations: Budget for regular servicing, repairs, and compliance inspections. Well-maintained cranes retain higher resale values and experience fewer costly breakdowns.
Insurance Requirements: Comprehensive insurance covering the full replacement value is typically mandatory. This protects both your business and the lender's interests.
Upgrade Planning: Consider your medium-term equipment needs. Some finance structures make upgrading to newer models more cost-effective than others.
Why Choose Professional Finance Assistance
Working with experienced finance brokers provides several advantages when purchasing cranes. Professional brokers understand the complexities of commercial equipment finance and can:
• Compare loan options from multiple lenders
• Negotiate favourable terms based on your business profile
• Handle paperwork and liaison with lenders
• Provide guidance on tax implications and structuring options
• Offer ongoing support throughout the loan term
Freo Finance specialises in truck and equipment finance, helping Canning Vale businesses access the machinery they need for growth. Our expertise extends beyond cranes to include work vehicles, office equipment, factory machinery, and various commercial equipment finance solutions.
Whether you're expanding your fleet of trucks and trailers or investing in specialised lifting equipment, professional finance guidance ensures you secure appropriate funding for your business needs. The right finance structure can provide tax advantages, preserve working capital, and support your company's growth objectives.
Purchasing a crane represents a significant step in your business development. With proper planning and appropriate equipment finance, this investment can drive productivity and profitability for years to come.
Call one of our team or book an appointment at a time that works for you to discuss your crane finance requirements.
