Crane is a type of mechanized equipment which is an aggregate of chains, sheaves, wire ropes and hoist, equipped to lift and move heavy loads from one place to another. Such a feat cannot be accomplished by the physical strength of human beings. Crane is a very common is sight in harbours, major construction sites which are dedicated for building modern transportation and residential infrastructure.
The invention of this marvelous equipment dates back to ancient Greek times when towering buildings were erected with the help of wooden cranes. With the advent of industrial revolution cranes made of steel and cast iron were introduced to increase the machine’s strength and reliability. Around this time people also witnessed the use of steam engines which was soon supplanted by hydraulic systems and electric power for adding force and might to the machine.
Crane Classifications and Constitution
There are a slew of crane varieties which have been designed to serve different purposes for instance overhead cranes which are devised specifically for steel industry. Then there is a mobile crane which is mounted on trucks to offer mobility to the machinery. We also find side lift cranes, all terrain crane, rough terrain cranes, telephonic handler crane, rail road crane, aerial crane, floating crane, tower cranes to name a few from the entire array of crane diversifications.
With the rapid advancement of technology, the know-how of constructing cranes are also becoming very sophisticated and complicated. However, there are some components which are common in all types of cranes like mast, hook, operation cabin, jib and slewing unit among others. This diversity in the building components of different cranes creates tremendous variation in their cost of production which complicates the process of crane finance.
Arranging Funds
Planning investment on buying a crane depends on the nature of constructional requirements. The basic construction of any crane has to keep a provision for modification based on the project requisite. Therefore, financing most of the cranes is a challenging proposition since they are not solid assets. Some of its parts which are common for all categories of cranes can reassembled in a new crane setup and used for a much longer tenure. This lack of uniformity has led to bewildering bank regulations and calculation of higher interest rates since banks do not offer a longer tenure of repayment. Under such trying situations estimating your project budget becomes a hassle-some experience. Therefore, once the type of crane requirement is identified and its approximate cost assessed the buyer can proceed to negotiate with the banks for crane finance.
One very powerful argument in favour of crane financing is the fact that these super machines can continue yielding revenue for their investors throughout the tenure. Banks will demand impregnable documentation, maintenance and inventory management analysis for gaining enough confidence to grant you long term loans. On the other hand there are few aggressive private sector financial institutions who grant crane loans very easily because they are aware of the contribution of cranes in commercial project initiatives.
The invention of this marvelous equipment dates back to ancient Greek times when towering buildings were erected with the help of wooden cranes. With the advent of industrial revolution cranes made of steel and cast iron were introduced to increase the machine’s strength and reliability. Around this time people also witnessed the use of steam engines which was soon supplanted by hydraulic systems and electric power for adding force and might to the machine.
Crane Classifications and Constitution
There are a slew of crane varieties which have been designed to serve different purposes for instance overhead cranes which are devised specifically for steel industry. Then there is a mobile crane which is mounted on trucks to offer mobility to the machinery. We also find side lift cranes, all terrain crane, rough terrain cranes, telephonic handler crane, rail road crane, aerial crane, floating crane, tower cranes to name a few from the entire array of crane diversifications.
With the rapid advancement of technology, the know-how of constructing cranes are also becoming very sophisticated and complicated. However, there are some components which are common in all types of cranes like mast, hook, operation cabin, jib and slewing unit among others. This diversity in the building components of different cranes creates tremendous variation in their cost of production which complicates the process of crane finance.
Arranging Funds
Planning investment on buying a crane depends on the nature of constructional requirements. The basic construction of any crane has to keep a provision for modification based on the project requisite. Therefore, financing most of the cranes is a challenging proposition since they are not solid assets. Some of its parts which are common for all categories of cranes can reassembled in a new crane setup and used for a much longer tenure. This lack of uniformity has led to bewildering bank regulations and calculation of higher interest rates since banks do not offer a longer tenure of repayment. Under such trying situations estimating your project budget becomes a hassle-some experience. Therefore, once the type of crane requirement is identified and its approximate cost assessed the buyer can proceed to negotiate with the banks for crane finance.
One very powerful argument in favour of crane financing is the fact that these super machines can continue yielding revenue for their investors throughout the tenure. Banks will demand impregnable documentation, maintenance and inventory management analysis for gaining enough confidence to grant you long term loans. On the other hand there are few aggressive private sector financial institutions who grant crane loans very easily because they are aware of the contribution of cranes in commercial project initiatives.