top of page

Financing a crane: What you need to know

Manitowoc Finance offers a wide choice of funding programs, each tailored to meet the needs of today’s crane businesses. In this article we answer some of the most frequently asked questions from U.S.-based customers.

What are the benefits of financing with Manitowoc?

Generates cashflow

Financing options let businesses schedule their payments to fit fluctuations in cashflow.

Preserves credit lines

Financing with Manitowoc doesn’t affect your lines of credit from your bank, so your capital resources can remain intact for other income-producing activities or investments.

Can be adapted to changing circumstances

Manitowoc financial solutions can adapt to many business scenarios from flexible payment schedules to add-on equipment requirements.

No big cash outlays

In many instances, the equipment can be acquired with a small down payment or one payment in advance.

A competitive edge

Equipment can be upgraded anytime during or at the end-of-lease terms.

What are the most popular financing programs for U.S.-based crane operators?

Full Payout Loan

Businesses can make fixed payments over the term of the contract, and they retain ownership of the equipment.

Fixed Purchase Option Lease

This allows businesses to lease equipment for a pre-determined purchase price or return equipment to Manitowoc Finance at the end of the lease.

Tax or True Lease (Fair Market Value)

This serves as an operating lease where businesses may purchase equipment for a fair market value at lease-end, extend the lease or return the equipment to Manitowoc Finance.

Early Buyout Option (EBO) Lease

Businesses receive benefits of a Tax or True Lease (Fair Market Value) while also having opportunities to purchase equipment during the lease term.

What should crane operators consider when choosing whether to lease or buy equipment?

The top three things they should consider are the economic useful life of the crane, capital or credit line usage, and the cash-flow requirements for the project where the crane is working.

How do lease accounting rules impact financing decisions?

For U.S. customers seeking ownership of a crane, Section 179 and Bonus Depreciation tax deductions allow for qualified capital expenditures to be fully depreciated during the tax year (subject to government regulation).

As an alternative, leasing may lighten the impact on a company’s balance sheet, as opposed to taking out a loan, by showing operating leases as non-debt liabilities. While lease accounting rules have changed the way payments are expensed, there are still advantages to acquiring capital equipment via lease.

How are current economic issues impacting financing choices and timeframes? What is the outlook for this market in the coming months?

Supply chain issues are currently a major headwind for not just the crane segment, but for the entire construction manufacturing sector. According to the Equipment Leasing and Finance Association (ELFA), construction equipment is projected to have the highest demand in 2022, compared to other equipment sectors. Even with production and supply chain constraints, demand remains strong for capital equipment.

For some businesses, acquiring used cranes is a suitable solution that combats the challenges associated with acquiring new equipment. Manitowoc Finance offers the same suite of products and services for both new and used cranes.

Why should a customer consider Manitowoc Finance over other types of lenders?

The strength of Manitowoc Finance lies in its brand and the expertise of its staff. Our representatives bring an average of more than 20 years each to the equipment finance business, with experience in many regions of the world. They understand the crane segment and dealers, challenges that crane customers face, and the entire Manitowoc range of products.

DISCLAIMER: Manitowoc Finance does not provide legal, tax, or accounting advice, and borrowers should consult their own advisors before making a financing decision.


bottom of page