Equipment Financing Questions & Myths

LEARN YOUR END-OF-TERM OPTIONS AND UNLEARN MYTHS LIKE ‘YOU NEED PERFECT CREDIT’

Equipment Financing: Answering Questions and Debunking Myths
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Equipment financing is a critical process for businesses new and old, large and small, across a wide range of industries. When companies don't have the money to purchase vital machinery outright, they turn to reliable, capable providers like Cat Financial to offer competitive equipment financing rates and terms. You can help your enterprise by learning the answers to common equipment financing questions and understanding that certain common conceptions about financing are actually myths.

Equipment Financing: Answering Questions and Debunking Myths

What should I look for after my equipment is delivered?

It's crucial to make sure your equipment is in good working condition and can be quickly put to use on the job site. Once you've successfully completed your application, agreed on terms and conditions, received approval and made an initial payment, you want equipment that is ready to work for you.

When your equipment arrives, conduct an inspection to look for any potential issues, like a missing part or exterior damage. Caterpillar takes great pride in making sure equipment is ready to use before delivery, but unavoidable issues in transit and other unpredictable factors mean you should always give your new machinery a once-over before you put it to work. If you identify a potential issue, get in touch with your local Cat® dealer and they'll help you determine the next steps to take.

 

How can I protect my financed equipment, and what are Extended Protection Solutions?

Extended Protection Solutions offer you an affordable, reliable option for making sure your Cat equipment receives high-quality maintenance and care for as long as you use it. Cat Financial's coverage options let you make the important decision of what you feel should be protected. Whether it's ensuring any future powertrain repairs are managed by a dependable, authorized local service center or securing Premier coverage for powertrain, hydraulics, technology and structural and electrical components on a new piece of equipment, you make the decision.

You can also incorporate Extended Service Coverage for your power systems and physical damage insurance to protect your heavy equipment from external factors like collisions, fires and floods. These optional additions can help you select the level of coverage that is best for the specific equipment you finance, your available budget, the industry in which you operate, and the potential hazards of the areas where you work.

 

What are my options at the end of my lease term?

An equipment finance lease offers flexibility, including elements commonly seen in both loans and leases that benefit you and your organization's operations. Cat Financial offers benefits including competitive financing options for qualified customers, extended lease terms that lead to lower monthly payments and an end-of-term option that allows you to purchase the leased equipment for as little as $1, depending on the terms of the lease agreement.

Based on your financial situation and business goals, making a purchase can be an effective way to retain reliable, trustworthy equipment with no ongoing costs beyond routine maintenance and upkeep. You’re not obligated to purchase the heavy equipment you've financed at the end of the lease term, but in many cases, the decision will make financial and operational sense. Be sure to carefully review your finances and anticipated business needs before making your decision. 

 

What do I do if I want to finance more equipment?

The equipment you finance through Cat Financial can have a major impact on your business. As part of a larger, coordinated strategy for business growth and development, you may find that your company is equipped to handle more work or that you have more potential customers eager to work with you after seeing the results of previous projects.

An existing financing agreement with Cat Financial doesn't mean you can't enter into another contract to acquire additional equipment. Whether you have an increased budget that enables your business to finance brand-new equipment easier, want to increase the amount of machinery in your fleet, or expand the range of equipment you operate, Cat Financial is here to help. With an established relationship, you can reach out to your Cat Financial representative to learn more about securing financing for additional equipment.

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