It’s time to add a shiny new piece of construction equipment to your fleet. You’ve visited your dealer and picked out the perfect machine. Now you have another choice — how to finance it. Here are 5 advantages of working with a lender aligned with your construction equipment dealer, also known as a captive finance company.
1. A captive finance company understands your business. Captive finance companies are dedicated to financing the products they build — so they’re specialists in the industries their equipment serves. A bank may be more focused on the dollars, independent of the brand.
2. You are more than just an account number. When your lender is aligned with your construction equipment dealer, it’s in their best interest to keep customers in their equipment and to maintain the relationship long-term. They are more likely to be proactive and work with you through your company’s ups and downs.
3. Your construction loan is more likely to be approved — and faster. A captive finance company has a vested interest in saying yes to your construction equipment loan quickly. They may ask for additional financial information or provide counteroffers when other lenders may just say no.
4. Banks come and go. Captive finance companies are stable even when other lenders may leave the market.
5. Captive lenders often offer more competitive rates and flexible financing options. Captive lenders know the seasonal nature of the construction business. They are more likely to offer multiple finance structures to support your individual needs - such as skip payments, various pay frequencies, accelerated payments, package financing, and flexible lease structures. Another plus: financing through a captive lender can free up credit at your primary lender.
Talk to your dealer today to learn more about our competitive rates and flexible terms.