There is no denying the impact that the crane has made on the U.S. economy. According to the Labor Bureau of Statistics, crane & tower operators provided over 40,000 jobs for Americans in 2017. From crane business owners to construction companies, utilizing cranes for construction can result to lucrative profits.
So how do I decide whether to buy, lease, or finance a crane?
Read below to learn about the different ways your business can obtain a crane.
Cranes on average have a lifespan of roughly 20 years. If your construction business has the capital to purchase outright, a crane can be an advantageous investment, and can often help your workers complete their job more quickly. However, this option is expensive due to the upfront purchasing cost, and the high cost of maintenance.
Leasing options provide your construction company with more flexibility in payment terms than a bank would. They also tend require less paperwork than going through a traditional bank, and shift the burden of equipment repairs/ costs to the equipment owner rather than your company.
A few drawbacks to leasing include it being the more expensive option and abiding to your agreed-upon leasing terms.
Let’s get real here. In most SME’s capital is tight, and the idea of purchasing a crane upfront is not a possibility. Financing not only allows the ability for a construction business to utilize a crane, but also provides a variety other benefits, including:
Ability to keep up with and utilize the latest crane technology
Avoid crane depreciation (if purchased)
Flexibility in payment terms
Tax write-offs on equipment
Assistance & advice about the industry from your financier
As long as your business has a fair credit history and no business liens, it tends to be easier to finance cranes than other types of equipment.
Overall, it is a big financial decision to decide which way obtaining a crane works best for your company. Consider all options, and meet with your accountant/ financial adviser to help decide what is best for your company.