Crane finance for hire companies and lifting contractors

Almost any crane with a serial number, a known manufacturer and a traceable history can be funded. What changes from one type to the next is how confident a lender feels about its value in five years' time.

• Mobile cranes. All-terrain, rough-terrain and city cranes from the major manufacturers trade internationally, so a lender that had to recover one has buyers well beyond the UK. That depth of market is why mainstream mobile cranes are among the more straightforward heavy assets to fund, new or used.
• Crawler cranes. Lattice and telescopic crawlers are long-lived machines used on infrastructure, piling and heavy-lift work. They hold value well but are transported in pieces and need assembly, so lenders look closely at who owns the counterweights, boom sections and transport trailers.
• Tower cranes. Flat-top and luffing-jib tower cranes are usually owned by specialist hire firms and supplied with erection, dismantling and operators. The resale market is narrower and the cost of moving and erecting a crane is high, so lenders lean on the owner's contract book and track record.
• Lorry-loader cranes. Knuckle-boom cranes mounted on rigid lorries, used by builders merchants, scaffolders, precast suppliers and plant hirers. The crane and the vehicle are usually financed together as one asset.
• Mini and spider cranes. Compact tracked cranes for glazing, interiors and restricted-access lifts. Smaller tickets, often funded on standard plant terms.

For telescopic handlers with a hook or winch attachment, see our telehandler finance guide; our construction equipment finance guide covers the wider site fleet.

Cranes are expensive, long-lived and specialist, so most lenders want more than a dealer invoice before committing. Expect some or all of the following.

• Specialist valuation. For used cranes and larger facilities, lenders often instruct an independent valuer with lifting equipment experience, rather than relying on a general plant valuer.
• Hours and duty. Engine and superstructure hours, the number of lifts at or near rated capacity, and whether the crane has worked on heavy cycle duties such as piling or demolition.
• Configuration. Boom length, jib options, counterweight and outrigger packages. A crane sold without its full counterweight is worth less, so lenders want the whole package captured in the agreement.
• Documentation. Manufacturer records, the history of thorough examinations, and evidence that structural inspections and major component overhauls have been carried out.
• Market depth. Popular capacity classes from established manufacturers command the best terms. Unusual or heavily customised cranes may need a larger deposit or a shorter term.

Older cranes can still be funded, as our used equipment finance page explains, but the term usually shortens as age increases.

Under the Lifting Operations and Lifting Equipment Regulations 1998, a crane must be thoroughly examined by a competent person at least every 12 months, or in line with a written examination scheme, and after installation or assembly at a new location before it is put into use. Lifting accessories such as slings and shackles are examined at least every six months. HSE guidance on thorough examination of lifting equipment sets out the duties. For tower cranes, that means a fresh examination every time a crane is erected on a new site, which is a cost to build into each contract.

Lenders care about this because a crane with gaps in its examination record is harder to sell and may need expensive work before it can operate. Beyond examinations, budget for insurance (including hired-in plant and contract lift cover), operator and appointed person training, servicing, wire ropes, tyres and transport between sites.

Limited companies, partnerships and sole traders can all apply. Lenders are usually most comfortable with businesses that have filed accounts and a history of operating or hiring lifting equipment, but newer firms are considered where the directors have relevant industry experience and a credible pipeline of work. Borrowing of £25,000 or less by sole traders and small partnerships can be regulated consumer credit with additional protections. A weaker credit record does not rule finance out, but expect a larger deposit or a shorter term.

The crane itself is the main security: the lender owns it, or has title to it, until the agreement ends. Directors of smaller companies are often asked for personal guarantees, and on larger or more specialist cranes a lender may ask for a deposit, a cross-guarantee from a group company or additional security over other equipment. Cranes already owned outright can sometimes be offered as extra security to reduce the deposit on a new one.

A straightforward application for a mainstream crane from an established business can move from enquiry to offer in a matter of days. Timescales stretch when a specialist valuation is needed, when the crane is being imported or built to order, or when the facility is large enough to need full credit committee review. Lead times on new cranes mean it is often sensible to agree finance in principle before placing the order.

• Keep hiring. If you need a crane on fewer days than the break-even point, hiring with or without an operator is often cheaper and passes the examination and maintenance burden to the hire firm.
• Contract lift. For occasional complex lifts, a contract lift places the planning and management of the lift with the crane company rather than you.
• Refinance existing cranes. Releasing equity from owned cranes can fund the deposit on a new one.
• Secured or unsecured loans. Useful for transport, rigging and site costs that do not sit well inside an asset agreement.