Flexibility is a crucial consideration for maintaining business operations and managing finances throughout the year. When your company has financial flexibility, it can overcome challenges and opportunities more confidently than it would with a lack of working capital. And when you have the heavy equipment and other assets necessary to take on a wide variety of work, you are more flexible - and often more successful - than a business with more limited capabilities.

We build flexibility into our financing agreements and provide options for qualified customers like delaying payments when the circumstances call for it. That's especially valuable for businesses that work on a seasonal schedule, whether it's a slow period due to the type of jobs your company takes on or regularly shutting your doors for a few months each year. Let's look at what skip payments are, when they can be used and how they help your business during seasonal downtime.

What are skip payments?

A skip payment agreement is a financing arrangement where payment timing is set to approximate expected cash flows. In simpler terms, your business may qualify to build skip payments into your financing agreement, which allows your company to make payments when the business is operating and avoid doing so when it's not active. In general, depending on approval, we can offer up to three skip payments per year on monthly payment schedules tied to financing agreements. 

Your business will eventually have to make the skipped payment, although generally as part of a higher monthly payment as opposed to a double payment after the skip payment period concludes. Instead of having to negotiate with your financing provider each year, you can simply build these mutually agreed upon gaps into your financing arrangement, even after you’ve signed your initial contract.

How do skip payments help my business?

A skip payment arrangement helps seasonal businesses avoid another long-term budgeting need that complicates financial planning. These issues are already common enough for seasonal companies, and can quickly take time away from other, more pressing issues. Instead of spending additional time focusing on the details of your finances and worrying about making payments while your company isn't operating, you can point your attention toward core business needs.

Why does Cat Financial offer skip payments?

Skip payment agreements are one of many ways that we actively work to support the businesses we partner with. We place a premium on effective, successful relationships with our clients. That means building flexibility into our financing options and doing everything we can to help clients keep their businesses running smoothly.

Contact us today to discuss whether your business is a candidate for skip payments and learn more about how skip payments can help your business.