Finance Options for Lift Trucks | Caterpillar

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Why Use Financial Merchandising?

More and more, customers are looking for ways to be more efficient when it comes to capital purchases, including the acquisition of forklifts. Whether you want off-balance sheet options, lower monthly payments or options to return at the end of the forklift lease, your plan should provide you with the flexibility to use, or even purchase, the forklift while still maintaining financial stability. This reference will allow you to not only decide which financial product best fits your needs but also to better explain the features and benefits of the various finance options offered by Cat Lift Trucks.

What Is Financial Merchandising? Financial Merchandising is simply the process by which you acquire your forklift. Whether you lease or purchase, Cat Lift Trucks financial merchandising programs can be used to structure the acquisition to help you receive the greatest financial benefit.

Types Of Lift Truck Leases

Cat Lift Trucks Operating Lease. . This is a "non-ownership" lease (also known as "off balance sheet" financing) structured to allow you to maximize utilization and productivity while avoiding costs associated with obsolescence. The most popular operating lease is the:
Fair Market Value Lease: You pay for the use of the equipment. At lease expiration, you have the option to purchase the equipment for its fair market value, return the equipment, rent month-to-month or renew the lease.
Cat Lift Trucks Capital Lease. Generally represents ownership of the equipment to the customer. This type of lease allows you to depreciate the equipment on your books. Two of the most popular capital leases are the:
Conditional Sales Contract: As a customer you want ownership, but need flexibility of an early loan payoff. This type of lease is typically considered when the lifting equipment has a long useful life and minimal maintenance expenses.

Dollar Option Lease: As a customer you want ownership. This lease is typically considered when the forklift equipment has a long useful life and minimal maintenance expense. The primary disadvantage is the early termination penalty.


Which Program Is The Best Fit For Your Company?


Customer Considerations	Cash	Finance	Lease	Rental

Prefers Ownership	x	x

Prefers The Option of Ownership			x

Use For Specific Contract & Return			x	x

Won't Affect / Tie Up Lines Of Credit			x	x

Won't Affect Debt Ratios	x		x	x

Off Balance Sheet Financing			x	x

100% Financing		x	x

Unlimited Cash Resources	x		x

Limited Cash Resources		x	x

100% Tax Deductible *			x	x

Prefers Low Monthly Payment			x

* Consult your tax accountant for your specific tax situation

Industry-Leading Financing Programs

Millennium Lease Rates. This lift truck leasing program provides the customer with one of the industry's most competitive factory-subsidized interest rates. Available Lease Programs range from 12 to 76 months. The Millennium Lease Program is offered exclusively through the preferred financing partner of Cat Lift Trucks.

Extended Terms Lease. This will allow you to add up to fourmonths to any standard lease term without increasing interest rates or lowering residual values. It can also significantly lower your monthly payments.

90-Day Delayed Payment Program. Provides you 90 days of lift truck equipment utilization free of charge before monthly payments begin. This product is ideal for budget constraints or for slow times of the year.

Early Termination Option. Designed if you're operating on a "renewable contract" basis or if you're anticipating application changes that may affect asset specifications. This option will allow you the flexibility to structure the lease at various terms (i.e., 3 years followed by 2 years) giving you the option to either return the equipment after 3 years or continue leasing the equipment for the additional 2 years at a significantly reduced monthly payment.

Fixed Purchase Option. Fixed purchase lift truck lease options are typically used if you are seeking an option to purchase equipment at the expiration of the lease term at a predetermined purchase price. This program may qualify as an operating or capital lease.

Accelerated Payment Leases. Monthly payments are higher in the first year and decrease annually over the life of the contract to better align payments to maintenance costs. If you perform your own forklift maintenance, this is the option for you. This can be used for both operating or capital leases.

Skip Payments. If your business is cyclical or seasonal, this option allows you to synchronize your payments with your cash flow. A skip program is typically limited to 3 skip payments a year. This can be used for both operating or capital leases.

For more information on forklift leasing programs, please contact your local Cat lift truck dealer.

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