Story By Shelley Barrett
Caterpillar Financial Services Corp.
Whether you’re a large contractor or an individual owner-operator, it is important to have the convenience of financing solutions that can be tailored to fit your business needs. To make financial management easier, consider lenders who offer “bundled solutions.” By bundling different financing facilities with one credit application, you save time. This can be especially convenient if you have a machine in need of repair.
Captive finance companies—lending companies owned by equipment manufacturers—have many resources and tools on their websites to help you select a suite of financial solutions to meet your specific needs. Different services can be financed, creating a one-stop shopping experience. This one-stop shop can save time as well as money, often with special financing opportunities.
Equipment Financing—It’s important to choose a lender who offers a variety of flexible payment options and competitive rates. A lender who understands your business, your equipment and the industry you work in can customize solutions that will maximize your cash flow and keep your business running smoothly.
Finding a lender who will stand by you in difficult economic times is as important as the interest rate on your machine purchase. This lender must understand your evolving needs and be flexible when necessary. Captive finance companies know more than just the interest rate on your purchase; they also know the machines and applications. The unique relationship with both dealer and manufacturer that a captive finance company has creates a competitive advantage that is to your benefit.
Extended Protection Plans—When purchasing a piece of equipment or refinancing a current contract, consider including an extended protection plan, which provides the highest level of repair cost protection available. Typically the lifespan of a machine well exceeds the manufacturer’s warranty timeframe, so some dealers offer these plans designed specifically for new equipment buyers to protect them for the long haul.
A plan typically wraps around the factory warranty, ensuring that your investment is safeguarded beyond the standard period. These plans enhance and sustain your entire ownership experience with comprehensive coverage and peace of mind. This additional coverage will add valuable years and hours of operation beyond your standard warranty period, keeping major repair costs from negatively impacting your bottom line.
Revolving Line Of Credit—A revolving credit line to facilitate parts and service expenses helps keep equipment and production moving smoothly. This type of account can provide access to special financing and extended payment terms on attachments as well as parts and service. In addition to a low interest rate, look for a product that does not require collateral and has no annual fee. Ability to manage your account online is another benefit.
For example, Cat Financial offers the Cat Financial Commercial Account, which is designed to maximize your cash flow by giving you the flexibility to pay over time and keep your cash when you need it. This credit line can be used at any CAT dealer or CAT Rental Store in the U.S., making this a valuable financial tool for loggers.