“Do You Need To Finance a New Or Used Crane?”
Crane financing and Crane equipment financing can be secured on both new and used equipment from both Canadian and U.S. lending sources.
This type of construction equipment financing is provided either in the form of an equipment loan or equipment lease.
Equipment loans for the most part are only provided through banks or institutional lenders, and are only available to applications that have an “A” credit profile.
While equipment leases are also available to “A” credit business, the spectrum of leasing companies in total tends to cover off a much broader spectrum of credit backgrounds including those with poor to bad credit.
For used crane financing, the key to getting financed with the best rates and terms is going to hinge on the age of the asset, its condition, and its estimated remaining useful life. The more heavy duty the crane or related crane equipment, the more likely it can be financed. Rates and terms for used equipment can vary considerably and will depend to large degree on the amount of used crane equipment that is available in the market now and projected into the near future when a loan or lease would be in effect. Especially with weaker credit profiles, the asset as security is going to be more important to the lender or leasing company, so the less amount of available supply of used equipment, the higher the confidence level the equipment financing company will have in being able to predictably be able to liquidate the asset in future if required.
Get Crane Equipment Financing That Meets Your Needs
With new crane equipment, it may be hard to improve upon the manufacturing financing programs that are being offered as they typically provide excellent if not below market financing rates. The focus on new crane financing would be if you were able to get a significantly different cash purchase deal that would require financing from another source. In these situations, either an equipment loan or lease could be explored, depending on the financial and credit profile of the applicant.
A crane equipment leasing option can provide you with a number of different considerations with respect to lease structure to fit your cash flow and potentially your taxation situation as well. Its best to review these different strategies with your tax adviser and/or financial planner to make sure that any specific type of leasing structure will be able to deliver the intended benefit(s) to you.
For more information on crane financing or if you have a unit picked out and need to get equipment financing in place, I suggest that you give us a call so we can provide a free initial assessment of your crane financing options and get all your questions answered as soon as possible.