Top tips to finance a crane for your business

Crane finance works like any equipment loan but with higher amounts and more deposit flexibility

A crane is financed the same way as other construction equipment, you borrow the amount needed, put down a deposit if required, and repay over an agreed term with interest. The loan is secured against the crane itself, which means lenders treat it as collateral. Because cranes hold value and generate income, many lenders will finance up to 100% of the purchase price depending on the type and age of the machine. A chattel mortgage is the most common structure for businesses buying cranes because it allows you to claim depreciation and the GST upfront, but a hire purchase or lease might suit if you want to keep the asset off your balance sheet or defer some of the GST benefit.

Chattel mortgage gives you ownership and the full depreciation claim from day one

With a chattel mortgage, you own the crane from the start and the lender registers a charge over it until the loan is repaid. You claim the full depreciation each year and can also claim the interest component of each repayment as a business expense. If the crane costs $400,000 and you finance the full amount over five years, the monthly repayment will depend on the interest rate and whether you include a balloon payment at the end. A balloon payment reduces your monthly cost but leaves a lump sum due at the end of the term, which you either pay, refinance, or cover by selling the equipment. This structure suits businesses with consistent revenue who want to maximise the tax deduction and manage their own upgrade cycle.

Hire purchase delays ownership until the final payment but simplifies the GST claim

Under a hire purchase agreement, the lender owns the crane until you make the final payment, then ownership transfers to you. You still claim depreciation and interest, but the GST is claimed progressively with each repayment rather than upfront. This can smooth cashflow if your business doesn't have the working capital to pay the full GST amount at settlement. Monthly repayments are typically slightly higher than a chattel mortgage because of how the interest is calculated, but there's no balloon payment unless you negotiate one. Hire purchase suits businesses that prefer a clear end date with ownership included and don't need the immediate GST refund.

A lease keeps the crane off your balance sheet and can include maintenance

A finance lease or operating lease means the lender owns the crane and you rent it for a fixed term. At the end, you either return it, extend the lease, or buy it for a residual amount. Lease payments are fully deductible as an operating expense, but you don't claim depreciation because you don't own the asset. This can improve your balance sheet ratios, which matters if you're seeking other funding or selling the business. Some lease agreements include maintenance and insurance, which simplifies budgeting. Consider a logistics business in Randwick that needs a 20-tonne mobile crane but expects to upgrade within three years. A lease with a short term and no residual lets them use the equipment, claim the full payment as an expense, and hand it back without worrying about resale value.

Lenders assess serviceability based on your operating history and the crane's income potential

To approve crane finance, a lender will look at your business's revenue, profit, existing debt, and how the crane will be used. If you're buying the crane to service a contract or expand into a new area, having that detail ready speeds up the process. Most lenders want to see at least 12 months of trading history, but some will approve finance for newer businesses if there's a strong purchase order or contract in place. The crane's age and condition also matter. A new or near-new crane from a known manufacturer will attract lower rates and higher loan-to-value ratios than an older or imported model. If you're buying from a dealer, some offer vendor finance with faster approval but often at a higher rate than you'd get through a broker accessing multiple lenders.

Randwick businesses often finance cranes as part of a broader fleet or project funding package

Many construction and civil businesses in Randwick operate across the eastern suburbs and inner Sydney, where access is tight and equipment needs to be mobile and reliable. If you're financing a crane alongside other equipment like excavators or trucks, bundling them into one facility can reduce admin and sometimes improve the rate. Some lenders also offer commercial loans or business loans that combine equipment finance with working capital, which helps if you're ramping up for a large project. If the crane purchase is tied to a specific development or infrastructure contract, mentioning that upfront gives the lender confidence in your ability to service the loan.

Fixed repayments give you certainty but variable rates drop if the market moves

You can finance a crane on a fixed or variable interest rate. A fixed rate locks in your monthly repayment for the term, which makes budgeting straightforward and protects you if rates rise. A variable rate moves with the market, so your repayment can go up or down. Most equipment finance is written on a fixed rate because the terms are shorter and businesses prefer certainty. If you're comparing offers, look at the comparison rate as well as the advertised rate because fees can vary. Application fees, monthly account fees, and early exit fees all affect the total cost.

Depreciation and the instant asset write-off can reduce your tax bill in the first year

Depending on when you purchase the crane and your business's turnover, you may be able to claim an immediate deduction under the instant asset write-off or temporary full expensing rules. These change regularly, so it's worth confirming the current threshold and eligibility with your accountant before signing. If the write-off doesn't apply, you claim depreciation over the crane's effective life, which is usually seven to ten years for heavy machinery. Either way, the tax benefit is one of the main reasons businesses choose to finance equipment rather than lease it. For more detail on how equipment finance structures affect your tax position, talk to your accountant and broker together so the finance is set up to match your strategy.

Speak to someone who knows equipment finance and can access the full panel of lenders

Crane finance isn't something most businesses arrange every year, so having a broker who understands the equipment, the lenders, and the structures saves time and often money. We work with businesses across Randwick and the eastern suburbs, and we can access asset finance options from banks and specialist lenders across Australia. If you're ready to move forward or want to talk through your options, call one of our team or book an appointment at a time that works for you.

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