Make sure you know you are pre-qualified before you apply for a crane loan. Our free business capital search engine will allow you to see the funding programs and lenders that are available to you and then you choose those you wish to apply for.
A crane loan is a special purpose loan designed to provide funding for the purchase of a crane. A crane is a piece of equipment used in construction trades such as office and residential buildings. A crane loan helps a business that is need of this piece of equipment have access to the financing necessary to but a crane.
Capital Equipment Purchase
Cranes are considered capital equipment that is purchased by a business such as a construction company. Capital equipment is held on the books of a business and depreciated over time. This is done in order for the business to recoup the costs associated with owning a capital equipment such as a crane that depreciates or goes down in value over time. At the end of the useable life of the equipment, the business simply writes-off the cost of the loan and arranges a new crane loan as a replacement.
Crane loans are long-term loans that are based on the useable life of the equipment. Over time, as the crane is used more and more, it loses value. Depreciating the loan’s cost over a period of 15 to 25-years helps the business take advantage of the financing provided through a crane loan and benefit from the write-off.
Crane Loan Interest Rates
The loan rates associated with a crane loan varies and is going to depend on the borrower’s credit, security or collateral requirements and the use of a co-signer or guarantor. Each of these helps a borrower with poor credit qualify for a crane loan and acquire the needed piece of equipment.
Credit is the lifeblood of your business, especially for small or new startup companies. BusinessFinance.com assists entrepreneurs to get started purchasing equipment, building your inventory and expanding your business.
Some important items to know to finance your are:
- How much money do you really need?
- Do you know your exact FICO scores?
- How do you plan to repay the loan?
- Who is going to borrow the money? You personally or another legal entity?
- What assets can you pledge to secure your loan?