Caterpillar Financial Reviews - Financial Lender Pros & Cons
Caterpillar Financial is a multinational company with more than 500 manufacturing and maintenance sites in more than 180 countries around the world. The company was established in 1925 with the merger of two large companies Holt Manufacturing Company and C. L. Best Tractor Co. Caterpillar Financial has experienced significant growth in size and revenue, with more than 100,000 employees around the world. The publicly traded company produces and sells a range of industrial products such as industrial machinery, motors, gas turbines, and marine equipment. Caterpillar Financial also manufactures and sells a full range of Cat products and apparel. The company also offers a range of financial services such as SBA loans, lease plans, lines of credit, and more.
- The customer has the option to choose fixed or variable loan rates.
- The company offers flexible payment methods.
- 100% financing available.
- Serves limited industries.
- Very selective with respect to qualification - Only deals with ‘A’ profile businesses.
Each business has different financial requirements. Caterpillar financing offers several rental and financing plans to its customers. The customer can choose between low monthly payments or flexible payment options while availing of any of their financial service plans. With the possibility of buying equipment during or after the term of the lease, Caterpillar Financial helps businesses match their funding choice according to their unique business goal.
Caterpillar Financial offers various equipment listening and financing choices at low-interest rates and flexible leasing terms. These include:
Caterpillar’s financial lease plan gives the business the power to own the equipment during the lease program. When a business encounters a short-term lease it also gets the benefit of lower monthly payments along with 100 percent financing, special promotional rates, and various options to buy equipment at special payment discounts.
Caterpillar financial structures the rental agreements in a way that helps facilitate the businesses in establishing the lowest possible monthly payment rates. Operating leases include a flexible purchase option at the end of the plan, offering extra flexibility to the business to decide whether it wants to keep the same equipment that has served it well throughout the agreement or opt for an alternative.
Small business Loans
Small business loans provide the businesses with the capital liquidity needed to purchase and operate mission-critical equipment. Caterpillar financial offers variable durations, prices, and terms that help develop an efficient and financially sound option that fits the business budget. Flexible payments and payment deferral plans help businesses with seasonal and short-term changes and help cash flows stay in good standing. These loans can also be used by start-up businesses.
Caterpillar financial offers working capital loans that can fund the daily operations of the business. The business can use these loans to purchase new equipment, bid for more jobs, expand the office space, or the spectrum of operations. The business can choose this financing option to respond to a variety of operational requirements.
Line of credit
Caterpillar financial offers a financing option of Line of Credit that gives businesses the advantage of short-term financing to pay their payroll expenses. The financing amounts enable the business to get a large amount for a specific period. The business can use its existing equity to get efficient financing that can help the business grow.
Industries CAT Financial Services:
- Oil and Gas industry
Credit Loans: Caterpillar financial can make a quick financing decision for the business that requires credit loans under $350,000 while using the information available via the Consumer Bureau Report (CBR).
Equipment financing history: The credit history of the business will help Caterpillar financial decide what loan type will be suitable for the business. If a business is new to Caterpillar Financial, the company can ask for past history details about machine purchases or financing. A good payment file, even for the rentals, works in the favor of the business.
Overall credit history: If a business has limited equipment or a poor financing history, it will not cause a problem in acquiring Caterpillar financing services. If the business can show the company that it is compliant with other commercial or equipment loans, the loan request can be approved. The commercial loan can include a mortgage, a car or truck loan, a credit card, a motorcycle or boat loan, or any other equipment loan.
Work on Hand: Caterpillar financial does not reject a loan request if a business has a limited track record in buying equipment or financing. The business can prove its income and show the financial statements to Caterpillar financial to acquire business loans.
Terms and Rates
Caterpillar Financial has different rates for every financing service it offers. In the case of equipment financing, the interest rate and monthly installments are determined by the type of inventory and its cost.
Equipment finance lease
- Duration for new equipment is 1-7 years
- Duration for used equipment is 1-5 years
- Payment Flexibility: The business can pay according to its choice: monthly, quarterly, semi-annual, annual, and accelerated payment plans are available.
- Duration of 3-7 years depending on the amount.
- Payments: Mostly monthly, but other schedules can be considered.
- Potential purchase option: Predetermined.
- Tax Benefits: The company claims all the financial benefits.
Long term rental
- Duration is 3-7 years
- Payments: Generally monthly, although other timelines can be opted too.
- Option to purchase: Option to purchase at fair market value may be included.
Why Choose Caterpillar Financial as your Business Finance Partner?
Caterpillar Financial is not a conventional lender or insurance company as it is a part of the CAT Inc. When it comes to business loan and equipment financing, the company understands what other lenders and insurers do not and works hard to support customer’s success. Whether the customer is looking to purchase a new or used machine, secure an investment of the business, or wants to expand the business, Caterpillar financial provides funding in all these cases and can serve as an excellent business finance partner for you.
Caterpillar Financial is very focused on increasing their capacity to serve clients globally with cutting edge financial services solutions that appeal to a broad base of businesses. Caterpillar Financial remains well-positioned to meet the needs of entrepreneurs and provide them with the equipment financing for their businesses. The company is an industrial powerhouse which can provide its customers with tailored financial solutions at a quick turnaround time.