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Financing mobile and tower cranes made easy

Chevron Equipment Finance is one of Australia’s leading mobile and tower crane finance experts offering competitive rates and a professional Australia wide service.

Chevron Equipment Finance is one of Australia’s leading mobile and tower crane finance experts offering competitive rates and a professional Australia wide service.

Chevron Equipment Finance offers crane finance solutions for mobile and tower cranes from 10t to 1,000t and boasts significant experience funding Franna pick and carry cranes as well as all types of Liebherr, Grove and Demag mobile and crawler cranes.

Quick approvals, no or low documentation finance, and flexible leasing options are available for all established operators.

“Whether you’re buying a new or used crane, it’s extremely important to match the lending structure to the maintenance cycle of the asset. If the structure you use isn’t correct, there is a risk you could get to the end of the finance contract and have a large balloon at the same time the 10-year inspection is due – which can be a very costly experience. Our specialists understand these risks and can help implement a lending structure to suit your situation,” said Chevron Equipment Finance Director, Chris Bradd tells Cranes and Lifting.

“Recently, a large client of ours was looking to purchase a 600t Terex CC2800 to complete a specific job. The crane was 7 years old and the job was scheduled to last only 18 months. Not wanting to own the crane after the job was complete or to hold the risk of having to complete the 10-year inspection the client came to us for a solution.

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We were able to customise an operating lease solution which would give the client the ability to lease the crane over 24 months and at the end of the period, simply hand it back to the finance company if they didn’t want to keep it.

In the event more work was secured, they had the option to re-lease the crane though they had the flexibility to simply hand it back. This gave them the confidence to acquire the crane to complete their own project without the use of contractors, which greatly increased the margin on their job. They were able to do that without the risk of owning the crane after the job or having to undertake the 10-year inspection,” said Bradd.

Chevron Equipment Finance is able to arrange no deposit finance for applicants with industry experience. Often a deposit or collateral security (such as another piece of equipment owned by the applicant) is required when financing cranes for a start-up business. However, because Chevron Equipment Finance takes the time to better understand a business, it can often avoid or minimise the amount of equity a customer needs to contribute.

There are a number of factors that will affect the interest rate on a crane loan. The best interest rates are offered on cranes that are less than five years old at the time of purchase. Chevron Equipment Finance can also arrange finance for older cranes but the interest rate may not be as sharp, based on the increased risk of an older asset.

Lower interest rates may also be offered to an applicant if they have a stable business history with at least two years’ financial statements. At the moment, crane finance rates are as low as 3.49 per cent which is the lowest, they’ve ever been. You can lock these rates in for up to seven years too, so now is an excellent time to finance if you’re in the market for a new crane.

Chevron Equipment Finance requires no proof of income for loans up to $500,000 where the applicant has been in business for at least two years, they are purchasing a new or near new crane, they have at least 12 months good payment history on a similar asset, the applicant is asset back and their taxes are paid and up to date.

It may be more difficult to obtain finance if an applicant has a limited or poor credit history. However, Chevron Equipment Finance has several lenders that will consider minor credit issues including rent-to-own products which are much more flexible than traditional lending options.

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