Crane finance gives you access to lifting capacity without tying up capital
Commercial equipment finance lets you acquire a crane through structured monthly repayments rather than paying the full amount upfront. You retain working capital for operational costs, staffing, and other equipment while spreading the crane's cost over a term that matches how long you plan to use it.
Cranes represent a significant investment, whether you're purchasing a mobile hydraulic unit for building sites, a tower crane for high-rise construction, or an overhead gantry crane for manufacturing. Finance structures give you immediate access to the machinery while preserving cashflow for day-to-day operations.
Chattel mortgage structures suit owner-operators and established businesses
A chattel mortgage is a secured loan where the crane acts as collateral. You own the equipment from day one, claim depreciation and interest as tax deductions, and make fixed monthly repayments over a term typically between three and seven years. At the end of the term, the loan is fully repaid and the crane is yours without further obligation.
Consider a construction business purchasing a 50-tonne all-terrain crane valued at $450,000. With a chattel mortgage and a 20% deposit of $90,000, the business finances $360,000 over five years. Monthly repayments remain consistent, the full purchase price is depreciable, and the business can claim GST credits on the purchase if registered. The crane generates income from day one while the cost is managed through predictable repayments.
This structure works well when you need ownership for accounting purposes, want to claim the full tax benefit, and plan to keep the crane for the long term. The loan amount is determined by the crane's value, your deposit, and your business's capacity to service the debt.
Hire purchase delivers ownership after a final payment
Hire purchase is similar to a chattel mortgage but with one key difference: you don't technically own the crane until the final payment is made. The lender holds title during the loan term, and ownership transfers once the agreement concludes. Repayments are fixed, the crane serves as collateral, and you can still claim tax deductions on interest and depreciation.
This option suits businesses that want eventual ownership but may benefit from the lender retaining title during the finance period. It's commonly used for mobile cranes, crawler cranes, and other units where the equipment will remain in service for several years beyond the loan term.
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Equipment leasing provides flexibility without ownership obligations
Leasing separates the cost of using the crane from the cost of owning it. You make regular lease payments over an agreed term, use the crane for your operations, and return it at the end or negotiate a purchase option. Operating leases don't appear as debt on your balance sheet, and lease payments are fully tax deductible as operating expenses.
In a scenario where a logistics company needs a 20-tonne pick-and-carry crane for a three-year contract, leasing allows the business to match the finance term to the contract duration. At the end of the lease, the company can return the crane, upgrade to a newer model, or purchase the unit at its residual value. The business avoids ownership risk, benefits from fixed payments that manage cashflow, and can allocate capital to other contracts or equipment.
Leasing works particularly well when you need access to the latest technology, expect your equipment needs to change, or want to avoid the residual value risk when the crane's useful life ends.
Lenders assess your serviceability and the crane's residual value
Approval depends on your business's ability to service the loan, your trading history, and the crane's type and condition. Lenders typically require at least two years of financial statements, evidence of contracts or revenue that justify the crane purchase, and a deposit between 10% and 30% depending on the equipment and your business profile.
New cranes from recognised manufacturers generally attract better rates and higher loan-to-value ratios than older or specialised units. Lenders consider the crane's resale value because it acts as security for the loan. A mobile hydraulic crane with broad industry application is easier to finance than a highly customised overhead crane designed for a single facility.
Your business structure, credit history, and cash position also influence the terms. Established businesses with consistent revenue can access a wider range of equipment finance options and may negotiate longer terms or lower deposits.
Fixed monthly repayments protect against rate movements
Most equipment finance agreements lock in the interest rate at the start of the term, giving you fixed monthly repayments that don't change with market conditions. This makes budgeting straightforward and protects your cashflow if rates rise during the loan period.
Repayment terms typically range from three to seven years, though some lenders offer longer terms for high-value cranes used in long-term infrastructure projects. Shorter terms mean higher monthly repayments but lower total interest costs. Longer terms reduce the monthly burden but increase the total amount paid over the life of the lease.
Choosing the right term depends on how long the crane will generate income, your current cashflow position, and whether you plan to upgrade or expand your fleet in the future. Our team can model different terms and structures so you understand the cost and cashflow impact before committing.
GST and tax treatment depend on your structure and registration status
If your business is registered for GST, you can claim input tax credits on the crane purchase under a chattel mortgage or hire purchase agreement. The GST is paid upfront and claimed back in your next Business Activity Statement, reducing the effective cost of the equipment.
Under a lease, GST is included in each lease payment and claimed progressively. Depreciation is available under ownership structures like chattel mortgage and hire purchase, giving you an additional tax deduction each year based on the crane's effective life as determined by the ATO.
Interest payments are tax deductible across all structures. Lease payments under an operating lease are fully deductible as a business expense. The tax treatment can significantly affect the net cost of the crane, so it's worth discussing your specific situation with your accountant before finalising a finance structure. Commercial loans specialists can work alongside your accountant to structure the finance in a tax-effective way.
Buying used cranes requires careful due diligence and lender approval
Financing a used crane is possible, but lenders typically require a detailed inspection report, service history, and evidence that the equipment is in sound working condition. The loan-to-value ratio is usually lower for used equipment, meaning you'll need a larger deposit, and the term may be shorter to reflect the crane's remaining useful life.
Used cranes from reputable dealers with warranties or certification are easier to finance than private sales. Lenders want confidence that the equipment will hold its value and remain operational throughout the loan term. If you're considering a used crane, expect to provide more documentation and allow time for the lender's valuation process.
Aligning finance terms with your contracts and revenue improves serviceability
If you're purchasing a crane for a specific project or contract, structuring the loan term to align with the contract duration can improve your application and reduce risk. Lenders look favourably on finance applications supported by confirmed revenue, particularly for high-value equipment.
Providing evidence of contracts, purchase orders, or long-term client agreements strengthens your application and may unlock better rates or higher loan amounts. If your crane will service multiple contracts or form part of a broader fleet expansion, your business's overall revenue and financial position will carry more weight than any single project.
Call one of our team or book an appointment at a time that works for you
Financing a crane involves understanding the equipment, the structures available, and how each option affects your tax position and cashflow. Whether you're purchasing your first crane or expanding a fleet, our team can connect you with lenders who understand plant and equipment finance and can structure a solution around your business needs. Call one of our team or book an appointment at a time that works for you.
Frequently Asked Questions
What is the typical deposit required to finance a crane?
Most lenders require a deposit between 10% and 30% of the crane's value, depending on whether it's new or used, the manufacturer, and your business's financial position. Established businesses with strong financials may secure lower deposit requirements.
Can I claim tax deductions on crane finance?
Yes. Under a chattel mortgage or hire purchase, you can claim depreciation on the crane and deduct interest payments. Under an operating lease, the full lease payment is tax deductible as a business expense.
How long does it take to get approval for crane finance?
Approval timeframes vary depending on the lender and the complexity of your application, but most decisions are made within a few business days once all financials, contracts, and equipment details are submitted. More documentation may be required for used cranes or higher loan amounts.
Is it harder to finance a used crane than a new one?
Yes, used cranes generally require a larger deposit, a detailed inspection report, and may have shorter loan terms. Lenders assess the crane's condition, age, and resale value to ensure it will hold sufficient value throughout the loan period.
What is the difference between a chattel mortgage and hire purchase for crane finance?
Under a chattel mortgage, you own the crane from day one and it appears as an asset on your balance sheet. With hire purchase, the lender retains ownership until the final payment is made, after which title transfers to you.
