Buying a crane can be a significant investment, so it’s important to understand the process and make an informed decision. Here is a complete guide to buying and financing a crane:

1. Determine Your Needs: Before buying a crane, you need to determine the type of crane you need for your current and future projects. There are many types of cranes available, including tower cranes, mobile cranes, crawler cranes, and overhead cranes. Each type of crane has its own advantages and disadvantages, so it’s important to choose the one that is best suited for your short and long term needs.
   
   
2. Choose a Crane Supplier: Once you have determined the type of crane you need, you should choose a reputable supplier. Look for a supplier that has experience in the industry and offers quality cranes. You can ask for referrals from other contractors or search online for reviews and ratings.
   
   
3. Check the Crane’s Condition: Before finalizing the purchase, it’s important to check the crane’s condition thoroughly. You should inspect the crane’s structural integrity, mechanical components, electrical system, and safety features. If possible, you should also test the crane’s performance to ensure it’s in good working condition.
   
   
4. Determine the Total Cost: In addition to the purchase price of the crane, you should also consider the cost of transportation, installation, maintenance, and insurance. These costs can add up quickly, so it’s important to factor them into your budget.
   
   
5. Choose a Financing Option: Once you have determined the total cost of the crane, you should consider your crane financing options. You can choose to pay for the crane in cash, obtain a loan from a bank or financial institution, or lease the crane.
   
   
6. Cash Payment: If you have sufficient cash reserves, you may choose to pay for the crane upfront. This option provides the advantage of avoiding interest payments and owning the crane outright.
   
   
7. Bank Loan: If you don’t have enough cash reserves, you may obtain a loan from a bank or financial institution. The loan amount and interest rate will depend on your credit score, business history, and collateral. You should compare the interest rates and terms of different lenders to choose the one that suits your needs.
   
   
8. Lease: If you don’t want to commit to a long-term investment, you can choose to lease the crane. Leasing provides the advantage of lower monthly payments and flexibility to upgrade or return the crane at the end of the lease term. However, you won’t own the crane at the end of the lease, unless the lease has end of term purchase options.
   
   
9. Finalize the Purchase: Once you have chosen the financing option, you should finalize the purchase. You should review and sign the purchase agreement, financing agreement, and any other legal documents. You should also make the necessary payments and obtain the necessary permits and insurance.
   
   
10. Maintenance and Operation: After buying your crane, it’s important to maintain and operate it properly. You should follow the manufacturer’s recommendations for maintenance, hire qualified operators, and ensure the crane is operated safely and efficiently. This will help prolong the lifespan of the crane and minimize downtime and repair costs.

Should I Buy a New or Used Crane?

The decision to buy a new or used crane depends on a variety of factors, including your budget, the purpose of the crane, the expected usage, and the availability of financing.

If you have a higher budget and require a crane with the latest technology, a new crane may be the better option. New cranes often come with warranties and maintenance packages, which can give you peace of mind and ensure that the crane operates reliably. Additionally, a new crane can offer the latest safety features and meet the most current industry standards.

However, if your budget is more limited or you don’t need the latest technology, a used crane could be a more cost-effective option. Used cranes are often significantly cheaper than new cranes, which can save you a lot of money upfront. Additionally, used cranes that have been well-maintained and inspected can still provide reliable and safe operation.

Ultimately, the decision to buy a new or used crane will depend on your specific needs and circumstances. Before making a decision, you should thoroughly research the options available to you, consult with experts in the field, and weigh the pros and cons of each choice.

Popular Websites to Purchase a Crane:

There are several websites where you can purchase a crane. Here are some of the most popular:

1. CraneNetwork.com – This is a great website for buying and selling new and used cranes of all types. It has a vast inventory of cranes from trusted brands and sellers.
   
   
2. Bigge.com – Bigge Crane and Rigging Co. is one of the largest crane companies in the world, and their website is a great place to buy or rent a crane. They have an extensive inventory of cranes of all sizes and types.
   
   
3. Mascus.com – This is a global marketplace for heavy machinery, including cranes. You can find both new and used cranes from sellers all over the world.
   
   
4. IronPlanet.com – This is another website that sells both new and used cranes, as well as other heavy equipment. They offer auctions and fixed-price listings, so you can find the right crane at the right price.
   
   
5. EquipmentTrader.com – This website has a large inventory of cranes for sale from dealers and private sellers. You can search by type, brand, location, and other criteria to find the perfect crane for your needs.

It’s always a good idea to do your research and compare prices and features before making a purchase. Additionally, be sure to check the seller’s reputation and read customer reviews before making a purchase to ensure that you are getting a quality crane.

Crane Financing Options:

There are several financing options available for businesses looking to purchase a crane:

1. Bank loans: Traditional bank loans are a common financing option for purchasing a crane. Banks typically offer competitive interest rates and repayment terms that can range from several months to several years.
   
   
2. Equipment financing: Some lenders specialize in providing financing for equipment purchases, including cranes. These lenders may offer more flexible repayment terms or better rates and terms compared to other financing options.
   
   
3. Leasing: Leasing a crane can be a cost-effective way to access the equipment without a large upfront investment. Leasing terms can range from short-term rentals to long-term leases, and some may include maintenance and repair services.
   
   
4. Equipment auctions: Not really a financing option, but purchasing a used crane at an auction can be a more affordable option for those on a tight budget. However, it is important to thoroughly inspect the crane before making a purchase to ensure it is in good working condition.  Depending on the age of the crane, most lenders will finance cranes purchased at an auction house.

When considering financing options for a crane purchase, it is important to carefully evaluate each option and compare interest rates, repayment terms, and any additional fees or charges. It may also be helpful to consult with a financial advisor or accountant to determine the best financing option for your specific situation.

Find the original article on our main blog here from April 20, 2023

The last couple years have been great for the mining industry and looking forward, there’s no reason to expect the recovery to lose any steam.   Analysts are optimistic about the continued recovery and generally agree that the mining industry will see significant growth and prosperity over the coming years.

Increased bottom-line numbers for mining companies prove the recovery is real.

Mining companies across The United States and Canada are seeing the trend of increased profits continue.  Companies such as Rio Tinto, Freeport-McMoRan and Anglo-American reported strong financial profits and significantly improved cash flow for FY2018; a trend we’ve seen for three years in a row now.  The recovery started a couple years ago, triggered by healthy macroeconomic fundamentals, hefty reserves and deregulation implemented by the Trump Administration. 

Profits remain strong for companies that are mining nickel, lead, copper, tin and gold while historically traditional materials such as iron and coal remain stable throughout the United States and Canada. Although the Trump Administration continues to take several actions intended to help revive the U.S. coal industry, their repeated attempts to “save coal” have been a struggle up to this point. However, the mining industry as a whole is trending in a positive direction.

The mining equipment market is helping to facilitate the growth in the mining industry.

The recent recovery in the mining industry has been sustained and fueled by its sister industry – mining equipment lending.  The mining equipment market is helping mining companies scale their fleet and improve their machinery to meet the upcoming demand.   Many are financing new and used mining equipment and fixing or upgrading currrent equipment to better position themselves for the upcoming demand in the next few years.

Just a couple years ago, the global mining equipment market size was valued at USD 120.82 billion, but the latest predictions estimate a CAGR of 11.7% that will more than double the global mining equipment market to USD 284.93 billion by 2025, according to a recent Grand View Research report.

Risk is still a factor.

Even though the forecast and outlook for mining in The United States and Canada is expected to continue for the next couple years, that doesn’t mean there is zero risk.  Mining companies will still struggle with historical issues they have always faced.  Tension over water usage from local communities, political turbulence in countries of operation and public movement away from coal and fossil fuel to renewable energy will still pose a threat to the mining industry recovery.

Even with risk, most expect the mining industry to see positive growth.

Even with the risks mentioned above, most analysts and industry experts agree the recovery trends we’ve seen over the last couple years will continue for the rest of 2019 and well into the future.  The mining and mining equipment industry appear healthier than they have in years, and there’s no reason to think that will change any time soon.

*This article was originally posted on our Site123 Blog here on June 1, 2019

And where is the market headed in 2018?  In October of 2017, industry reporting firm AMT reported that machine tool orders were up 7.6% over 2016’s numbers during the same month. This was great news as a few years before, the value of the industry as a whole was on the decline, falling into a negative cycle of decreasing demand and lost value in financing machine tool equipment.

The success of the machine tools industry and financers largely depends on the various manufacturing sectors remaining profitable and growing. Luckily, 2017 brought the first positive change in machine tool consumption with a 1.6% over the previous year. Experts forecast the same kind of results for 2018, and they expect the rate to increase as well. 

Understanding the Ups and Downs of the Industry

The machine tools industry has taken sharp dives and monumental ascensions over the last decades or so. Some believe that the recent shifts are due to low interest rates for manufacturers and a larger demand for machine tools in the Chinese market.

A report from the industry research firm IndexBox found that the value of machine tool production in the U.S. fell by 4.5% between 2014 and 2015 which raised major alarms among investors and manufacturers alike. Luckily, the market has since gone on the upswing in 2017 and analysts predict the same momentum to carry over into 2018 because of the new corporate-friendly economic policies of the current administration.

With China’s appetite for machine tools and manufacturing as a whole, the recent declines in value aren’t nearly as severe as expected and the peaks are also much more positive than predicted.

The Leading Lenders

Industry research firm EDA reported that the top 20 machine tool financers accounted for 481 new financial filings in the month of November 2017 alone. These five lending titans are the following:

1.      CNC ASSC INC                         72

2.      BANTERRA BANK                    39

3.      DMG MORI SEIKI USA             32

4.      ELLISON TECH                         32

5.      HARTWIG INC                         30

These top five lenders financed 42.6% of the total units sold and the number one lender, CNC Associates accounted for 15% by itself.

Who Was Buying in 2017?

Purchasing from these lenders were companies across industries and sectors all seeking the equipment and machine tool they need to produce their products. In the same EDA report mentioned above, they listed the top five buyers as follows:

1.      Kennametal                 Pennsylvania, USA                   16

2.      TE Connectivity            Pennsylvania, USA                    9

3.      Aerofit                           California, USA                          8

4.      C&C Machine Tool      Minnesota, USA                         8

5.      FMI Holdings               Texas, USA                                  8

The economy is on the upswing from recent tax cuts for corporations to reinvest in their equipment and labor so expect 2018 to hold true to these same trends from the previous year. That being said, as we mentioned, the machine tool industry follows periods of ups and downs and the same could be true for the next few years as well. 

Thеrе аrе аlmоѕt dаilу аdvаnсеѕ in hеаlth саrе, inсluding new аnd imрrоvеd mеdiсаl equipment and dеviсеѕ. For hоѕрitаlѕ, сliniсѕ,  public аnd рrivаtе mеdiсаl, dental аnd vеtеrinаrу рrасtiсеѕ, keeping up with the nесеѕѕаrу tесhnоlоgiеѕ саn bесоmе a dаunting challenge.

Anу mеdiсаl рrоfеѕѕiоnаl саn tеll уоu thаt to tеll уоu thаt new еԛuiрmеnt саn ԛuiсklу drаin thе finаnсеѕ of аnу tуре оf hеаlthсаrе facility. Oftеn, upgrading iѕ essential, but оnе must bе саrеful from whom thеу are рurсhаѕing used equipment, what shape it iѕ in, is the equipment  still under warranty аnd which ассеѕѕоriеѕ and fеаturеѕ are nееdеd аnd will bе uѕеd оn a regular basis. Hеаlth inѕtitutiоnѕ are turning tо the рrе-оwnеd mеdiсаl equipment market in inсrеаѕing numbers, with thе сurrеnt global economic rесеѕѕiоn fоrсing thеm tо rеduсе thеir budgеtѕ. Hоwеvеr, the nееd fоr quality medical еԛuiрmеnt rеmаinѕ constant.

Hospitals саn save large ѕumѕ оf mоnеу bу buying аnd ѕеlling uѕеd mеdiсаl and laboratory equipment оvеr thе internet. In this way, costs can effectively be kерt under соntrоl. A vеrу imроrtаnt bеnеfit iѕ that tо the еnvirоnmеnt, as used items which аrе still in gооd соnditiоn саn used for уеаrѕ tо come. Hеаlthсаrе саrriеѕ a lоt оf роtеntiаl wаѕtе; a fасt mеdiсаl рrоfеѕѕiоnаlѕ аrе inсrеаѕinglу аwаrе of аnd ѕееking ways tо reduce. Used mеdiсаl equipment can bе a vеrу соѕt-еffесtivе аnd рrасtiсаl solution for healthcare facilities looking to еԛuiр thеir clinics, hоѕрitаlѕ, оr rehabilitation сеntеrѕ. Online vеndоrѕ and marketplaces hаvе expanded рurсhаѕing opportunities tо medical fасilitiеѕ bу еxроѕing thеm tо a widе range оf immediately аvаilаblе options. While, the intеrnеt offers the grеаt convenience оf selection, as wеll аѕ ѕаving valuable timе and money, buуеrѕ muѕt bе wаrу whеn рurсhаѕing items ѕight-unѕееn over thе intеrnеt.

Thеrе are a number of асtiоnѕ thаt hоѕрitаlѕ аnd clinics саn imрlеmеnt when buying used mеdiсаl equipment online, tо еnѕurе thаt they mаkе ѕаfе рurсhаѕеs while still tаking advantage оf the соnvеniеnсе аnd ѕimрliсitу thаt есоmmеrсе оffеrѕ:

1. Cаrеfullу rеviеw the details of the item thаt you аrе interested in purchasing. Mаkе ѕurе that it is compliant with уоur local legal аnd hеаlth rеgulаtiоnѕ. If you fееl that the ѕеllеr'ѕ dеѕсriрtiоn of itеm iѕ tоо vague оr уоu require additional infоrmаtiоn regarding thе dеviсе, be ѕurе tо аѕk thе ѕеllеr these ԛuеѕtiоnѕ. Pictures help уоu get a mоrе accurate understanding оf thе асtuаl соnditiоn that the itеm is in. If уоu are uѕing аn online mаrkеtрlасе, mаkе ѕurе tо rеviеw the ѕеllеr'ѕ rаting оn thе ѕitе - tурiсаllу a ѕеllеr'ѕ rаting is rеаѕоnаblе indication оf thеir reputation.

2. Bеfоrе closing a dеаl, раrtiсulаrlу аn еxреnѕivе itеm, request fоr it to bе inѕресtеd bу a certified inspector. There are a vаriеtу of inѕресtiоnѕ that can bе соnduсtеd ассоrding to what type оf dеviсе it iѕ. Make sure tо ask thе inspector fоr a dеtаilеd rероrt оf the itеm'ѕ соnditiоn аnd funсtiоnаlitу. If something ѕееmѕ dеfесtivе or nоt in the соnditiоn you require, rеfrаin frоm purchasing it. Some websites оffеr inѕресtiоn ѕеrviсеѕ which саn bе dirесtlу оrdеrеd thrоugh the ѕitе, in оrdеr tо save fасilitiеѕ timе in finding аn аuthоrizеd inѕресtоr.

3. Onсе you hаvе dесidеd thаt thе dеviсе thаt you are looking to buy iѕ in ассерtаblе соnditiоn, you саn gо аhеаd intо thе оrdеring stage. Bеfоrе рrосееding with thе purchase, mаkе sure thаt thе website hаѕ a SSL (Secure Sосkеtѕ Layer) tо рrоtесt аnу реrѕоnаl, сrеdit саrd, bank infоrmаtiоn, оr any other sensitive information уоu provide оnlinе. Additiоnаllу, thе wеbѕitе ѕhоuld wоrk with a rесоgnizеd есоmmеrсе рауmеnt management company tо rеduсе thе risk оf frаud.

4. If you would furthеr likе tо ѕесurе your purchase with thе ѕеllеr, соnѕidеr uѕing аn Escrow соmраnу tо trаnѕfеr thе fundѕ tо thе ѕеllеr - Escrow соmраniеѕ rеduсе the associated riѕkѕ fоr buуеrѕ аnd ѕеllеrѕ, bу рrоviding a trаnѕасtiоn mеdiаtiоn ѕеrviсе реrfоrmеd bу a liсеnѕеd third-раrtу соmраnу.

Construction equipment financing is a very common type of business financing.  In fact, construction equipment is one of the most frequently financed types of equipment within the equipment finance industry.  There are numerous lenders that offer this type of financing, so do your research and shop wisely.  Below are some frequently asked questions about financing construction machinery?

Who Can Obtain A Construction Equipment Loan?

Most lenders will only offer this type of financing to small business owners and larger established companies.  However, some original equipment manufacturer dealers such as John Deere, CAT, Hitachi, Volvo and others will offer financing to individuals and sole proprietors. 

What Are The Collateral Requirements?

For borrowers with good credit, the equipment being acquired is usually the only collateral needed to obtain financing.  If your business or personal credit is not the best, then additional collateral or a larger down payment may be required.

Do I Have To Provide A Personal Guarantee?

This will largely depend on the overall credit profile and the size of the financing request.  Most lenders will require any individual, sole proprietor and newer small business owner to provide a personal guarantee.

Established small business owners with many years of proven financial stability and most larger companies are usually not forced to provide a PG.

What Is The Usual Loan Repayment Term?

Every lender is different, but most lenders have the ability to accommodate any requested loan term from 12 to 72 months depending on the overall credit profile and the age of the equipment.

How Long Does It Takes To Process The Loan?

Some lenders can offer same day turn around for smaller deals under $150,000 on equipment offered from a dealership.  Larger deals like the ones we focus on (normally $1 million and above) can take 2 to 4 weeks to get completed.

What Are Construction Equipment Loan Rates?

If your company is a bankable credit, then you should be able to get bank rates or close to current published rates.  For companies that don't fit the bank mold or don't want to deal with the bank approval process, rates are usually a bit higher.  If your company is working with a non-bank lender or broker and the offer you receive is over 20% interest you need to get in touch with us today as we can probably prevent you from signing a bad deal for your business.