What is direct pay?

Advantages of an automated payment option for your heavy equipment loans and leases

There are major decisions to make following your initial choice to lease heavy equipment or secure a loan for the machinery you need. What type of equipment will provide your company with the most utility? How long do you plan to use it for? Would you rather lease new or old equipment, or take out a loan? Is a finance lease (potentially including the flex lease option) or an operating lease a better approach to address your specific needs?

These are all important questions. But whichever route you choose, there's one option to keep in mind, something that may seem minor but can have impacts across your business: Direct Pay. Let's look at what Direct Pay is, and why it's an effective option for your company.


What is Direct Pay?

Direct Pay is a direct debit authorization that automatically draws your lease payment from the checking account you choose and sends it to Cat Financial at the agreed-upon time each month. You probably already use some form of direct debit to pay for personal expenses, like settling your home utility bills or making your car payment each month. It's often called autopay in these contexts, but goes by a variety of names.

Cat Financial's Direct Pay option is straightforward, dependable and easy to manage. All you need to do to avoid worrying about scheduling a payment each month and making sure it arrives on time, is complete an application and attach a voided check. You can find the application and learn more about the Direct Pay program here.


Why is Direct Pay beneficial to your business?

Signing up for Direct Pay is a one-time action that will continue to save you time in the future, for your current lease and all other leases you enter into with Cat Financial. Managing finances as a small-business owner is a complicated task, especially when there are so many other hats to wear. From leading your crew on the jobsite to finding new projects to bid on and complete, there are only so many hours in the day. Direct Pay gives you the opportunity to automate an important payment and eliminate one thing on your to-do list.

Setting up Direct Pay and establishing a consistent payment history also helps you build a stronger, long-term relationship with your financial institution. As a customer in good standing, you're in a better position to enter into future leases and loans. Plus, you can potentially enjoy more favorable terms and conditions. The ease of the process, the ability to reliably pay an important bill and the enhancement of your relationship with Cat Financial are undeniable benefits. To learn more, follow this link or contact a Cat Financial Representative today.



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