Chattel Mortgage

How it works:
You own the crane from day one. The lender provides the funds, and you repay through fixed monthly instalments over the agreed term. At the end of the term, the crane is yours – no balloon payment, no complications.

Tax benefits:
Full tax deductions on interest payments and GST claim on the full purchase price upfront (if registered for GST). Depreciation deductions available on the crane value.

Typical terms: 3-7 years

Best for: Established crane operators, businesses with strong cash flow, owner-operators looking for full ownership and maximum tax benefits

Crane-specific insight: For crane hire businesses generating regular income, chattel mortgage offers the simplest structure. You’re not worrying about residuals or end-of-term decisions – you’re focused on running your operation.

Finance Lease

How it works:
The lender owns the crane during the lease term. You make regular lease payments and have full use of the equipment. At the end of the term, you can purchase the crane for a pre-agreed residual value, refinance the residual, or return the equipment.

Tax benefits:
Lease payments are fully tax-deductible as operating expenses. GST is paid on payments over time rather than upfront.

Typical terms: 3-5 years

Best for: Businesses wanting lower monthly payments, operators managing cash flow carefully, contractors with project-based work cycles

Crane-specific insight: Finance lease works well when you’re taking on a specific project or contract and want to keep payments manageable. The flexibility at term end is valuable in an industry where equipment needs can shift based on work pipeline.

Commercial Hire Purchase

How it works:
Similar to chattel mortgage but with a balloon payment (residual) at the end. You make regular payments throughout the term, then pay the final balloon to own the crane outright.

Tax benefits:
Interest portion of payments is tax-deductible. GST can be claimed upfront. Depreciation deductions available.

Typical terms: 2-5 years

Best for: Businesses wanting lower monthly payments with a lump sum at the end, operators with seasonal income patterns, crane purchases tied to specific project financing

Crane-specific insight: Common for businesses financing their first significant crane when cash flow is tight initially. The balloon reduces monthly commitment while you establish the crane’s earning capacity, then you can refinance or pay out the balloon once revenue is proven.

Rental/Operating Lease

How it works:
True rental agreement where you never own the crane. Fixed rental payments over the agreed term, then return the equipment or negotiate a new agreement.

Tax benefits:
Full rental payments are tax-deductible. No asset on your balance sheet.

Typical terms: 1-5 years

Best for: Short-term project requirements, businesses wanting to keep equipment off-balance sheet, operators testing new crane types before full commitment

Crane-specific insight: Less common for flagship crane investments but can work for supplementary equipment or when you’re entering a new crane category and want to test market demand before purchasing.

New vs. Used Crane Finance – What Changes?

New Cranes:

• Longer available terms (up to 7 years typically)

• Lower interest rates generally

• Full manufacturer warranty period

• Higher borrowing amounts available

• Simplified valuations (manufacturer RRP)

Used Cranes:

• Shorter terms often required (3-5 years depending on age)

• Interest rates may be slightly higher

• Lender focus on condition and service history

• Deposit requirements may vary

• The Finlease difference: We can finance older cranes when banks say no because we assess the operator and business case, not just an age cutoff