CECE issues brochure on Financing and Insuring Tower Cranes

The current lack of financial support from banks and insurance companies is refraining potential tower crane customers from buying this type of equipment. Historically, tower cranes have been a very profitable product, because of their long life and their fast return of investment. However, since the economic crisis, it is very difficult for companies to find financing for such an important investment. Recently banks and insurance companies became very hesitant to finance and insure tower cranes any longer because of:

• The lack of knowledge of this product.

• The problem in identifying and tracking the assets.

• The difficulties in measuring the return of investments.

In addition, according to recently adopted regulations applying to the banking sector (as per Basel III), banks are more reluctant than they were in the past to finance construction equipment in general. Finally, due to the recent general decrease of renting rates, investing in tower cranes became less interesting from an economical perspective than it was before the financial crisis.

The purpose of the new CECE document, which was issues in the form of a brochure, is to provide banks and insurance companies with an accurate idea of what is a tower crane; why this equipment should be financed; what is the value of such an asset; how to track a tower crane and how to ensure a return of investment. You can download the brochure here. More information: valentina.mauri@cece.eu