Glossary Finance Plans Installment loans enable customers to make a down payment or trade-in, acquire Cat equipment, and then structure payments over a period of time. They offer the lowest total cost option for ownership and allow customers to claim ownership benefits like depreciation and interest-expense deductions. Operating leases let customers use Cat equipment with options to return it at the end of the lease term, extend the lease, or purchase the equipment. Finance leases give customers the option to own equipment under lease.
Customers choose one of two options for lease-end.
They can structure the lease on a full payment basis, or they can select an option that allows them either to buy the equipment at a predetermined price or return it. Either way, customers in most cases can claim the benefits of ownership for tax purposes. Working capital loans allow customers to obtain financing for working capital, debt consolidation, sale lease-backs, or other business purposes by using their Cat equipment as collateral. We also help customers establish a line of credit, so they can obtain loans when the need arises. The income we receive is tax-exempt, so we pass the savings on through special low interest rates.