workers consulting on the job site
workers consulting on the job site

The Value of Captive Finance Companies



Equipment Financing

What makes Cat Financial different from a traditional bank or lender?

Using the best equipment possible is crucial to your operation’s success, but in many cases, getting access to that equipment requires financing to fund your efforts. When you need a financial helping hand, it pays to partner with an experienced captive financing company.

What’s that, you ask? It’s a complex term for a simple concept: A captive financing company is one owned by the manufacturer of the products you’re buying. Cat Financial, for example, is owned by Caterpillar and works with Cat® customers


The immediate advantages of captive financing

Maybe you’re considering going to a local bank or lender to get financing for capital equipment, whether in the form of a small-business loan or some sort of cash advance. The offerings of these types of financial institutions can be limited solely to the funding they can provide you, and that’s it. With captive financing, the parent company provides the upfront capital for financing the equipment. That means captive financing companies generally offer more robust and flexible solutions, including:

  • Commercial financing programs
  • Leases and loans
  • Extended protection
  • Insurance

With so many options, captive financing companies give you the flexibility to make the choices that best suit your needs. And because they can offer everything — financing plus extended protection — in one place, the entire process is typically faster and easier for you.


The long-term value of captive financing

You need durable equipment made for the long haul. Since captive financing companies rely on the resale value of their equipment, they provide customized support for you and your equipment. That creates an environment where financed products may depreciate more slowly, ensuring prolonged value.

There’s also an intangible benefit in the form of building a strong relationship with your financial partner. If you choose another option to obtain funding for buying durable goods, the extent of the relationship is typically comprised solely of repayment of the loan. Any additional support typically dries up once the bank delivers the capital.

Cat Financial is different. We understand the industries you work in and the unique needs of your business.

We offer more than just financing. We:

  • Understand the seasonal shifts and industry trends that influence your sales cycle.
  • Customize options for qualified customers based on this knowledge.
  • Provide an ideal solution for equipment financing throughout the year.
  • Make informed recommendations beyond the financing and leasing aspects.
  • And so much more.

We’re committed to your success and want to make sure you leave not only with the best product offering, but also with the flexible and sustainable support you need to succeed in your market. If you run into hard times, suffer an injury or experience a natural disaster, you’re not suddenly going to lose your equipment. Your relationship with your captive financing company can last for the life of your business.



Interested in learning more about our financing and extended protection options? Ready to get the process started? Just fill out this form and we’ll have your local Cat dealer follow up with the information you need.

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Discover all the ways you can protect your machines, power systems and more. Cat Financial can also provide insurance protection for your equipment and business too.

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