When looking to acquire a crane for your business, it’s pretty easy to be scared away by sticker shock. However, before you decide you can’t afford that crane, take a moment to consider looking into your payment options. Getting the crane you need to take on bigger jobs and bring in more profit doesn’t have to put a huge dent in your bank account. With crane financing you’ll be able to afford more without making major financial sacrifices.
So take a few minutes to learn the ins-and-outs of financing. You’ll be surprised how easy and affordable it makes adding a crane to your business.
The Basics of Crane Financing
Before heading straight into the crane financing process, it’s important to understand a few common terms and concepts you’ll hear.
Leasing v. Financing: the terms leasing and financing are used interchangeably fairly often, but they technically refer to different things. While they both break down the cost of the crane and make it more affordable, their structure differs. With financing, you receive ownership of the crane from the start and pay back the cost to the lender each month. When you lease a crane, the lender purchases it and you pay to use it. With lease-to-own, at the end of the agreement you receive ownership.
Flexible Financing: This refers to a plan that is customized to the individual business to help set them up for success and that’s built around their needs. The plan can be completely custom or follow one of the many commonly sought after structures like no money down, skip/step, or buy now, pay later.
Terms: The terms of a financing or leasing agreement typically refer to the monthly payment amount, the length of the agreement, the monthly charges, and the type of plan.
The 5 Steps to Crane Financing
Crane financing or leasing can easily be done in five simple steps. Knowing what to expect before you start will give you peace of mind and help you get your crane even faster.
Step 1: Apply
The very first step to affording the crane you need is to apply for financing. A quick, commitment-free application makes it hassle-free. In the application, you’ll let your potential lender know the basics about you, your business, and your equipment needs. This step should only take a few minutes. Once you hit submit, you’ll officially be on your way to getting your crane.
Step 2: Talk to an Expert
After applying, a financing consultant will reach out to chat. During this stage, you’ll discuss what you are looking for in a financing/leasing plan. Your consultant will go over your options and give you a chance to ask any questions you may have about financing and the next steps.
Step 3: Documentation
Now that you’ve applied and your consultant has an idea what you’re looking for in a payment plan, you’ll be asked to share a bit of financial history. No need to panic! It’s completely normal and 100% safe. The lender just needs to know that you aren’t too risky of an investment. You can usually submit the necessary documents through a secure online platform making this step easy and quick.
Step 4: Get Approved
Time to get excited! Once your documents have been evaluated, your financing consultant will contact you to let you know you’ve been approved within 48 hours. You and your consultant will work together to hammer out the details of your plan.
Step 5: Receive your equipment
It’s officially time to break out the champagne and start celebrating! Now all you have to do is sign on the dotted line. Your lender will submit a purchase order for the crane, and it’ll be sent to you. You’ll look it over and make sure it is in good working order. Once you give your approval, your agreement starts and you can put that crane to work.
Now that you know some common financing terms and know the process, you’re ready to get your crane and grow your business!
About the Author
Bob Dubow is Vice President-Business Development at Beacon Funding, a leader in equipment financing. With over 25 years in the equipment financing industry and 10 years’ experience financing Cranes, Boom Trucks, and Bucket Trucks, Bob has the knowledge and experience to help business owners understand the benefits of equipment financing as a prudent source of funds to successfully grow their business profit. He can be reached directly at [email protected] or 847-897-2491.