Equipment Financing Options:
A Step-By-Step Guide

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EQUIPMENT
LOAN

EQUIPMENT
FINANCE LEASE

EQUIPMENT
OPERATING LEASE

EQUIPMENT
RENTAL

What’s the #1 advantage of this option?

You build equity quickly and it’s the least expensive path to ownership other than a cash purchase.

You pay a lower monthly amount and get the option of equipment ownership.

You pay the lowest monthly amount for equipment and save capital by spreading payments out over a period of time.

You get maximum flexibility when you need equipment short term.

Who owns the equipment?

You own the machine immediately at the end of your contract only if all payments are complete.

You own the equipment and can choose a bargain purchase option to reduce your payment. You also have the option to return equipment at lease-end.*

We own the equipment, but you have the option to purchase it at fair market value or predetermined option amount at lease-end.*

The rental provider owns the equipment, but there may be a rent-to-own option.

Am I building equity with my equipment?

Yes — you can build equity the fastest with this option.*

Yes — but equity buildup is slower than an equipment loan.*

No — there’s no equity buildup.

No — there’s no equity buildup.

Who benefits from tax depreciation on the equipment?

You take the depreciation.

You can choose to take the depreciation.

We take the depreciation.

The rental provider takes the depreciation.

How high or low is my equipment payment?

Monthly payments are typically higher than an equipment lease or short-term rental.

Monthly payments are typically lower than an equipment loan or short-term rental but not as low as an operating lease.

Monthly payments are typically lower than an equipment loan or finance lease.

Monthly payments are typically lower than a loan or lease, but higher than an operating lease. The Cat^® Card can spread costs out, but the full payment is due in the next billing cycle.

Is there contract flexibility?

Yes — qualified customers can choose from different term lengths and schedule payments monthly, quarterly, semi-annually or annually.*

Yes — qualified customers can choose from different term lengths and schedule payments monthly, quarterly, semi-annually or annually. Plus qualified customers can easily modify their lease contracts as needed.*

Some — qualified customers can choose from different term lengths but pay monthly (we may consider other payment schedules).*

Yes — renting equipment with the Cat Card provides the most flexibility for payment options with a line of credit.*

Are there early payoff restrictions?

No — you’re not penalized for paying off an equipment loan early.

No — you’re not penalized for paying off a finance lease early and you can pay off at any time.*

No — you can pay the remainder of an operating lease off at any time at the casualty or fair market value.

No — because you only pay for the equipment for the length of the rental agreement.

Who pays personal property tax on the equipment?

You pay property tax (varies by state).

You pay property tax (varies by state).

We pay property tax, then invoice you.

The rental provider pays property tax.

Who is responsible for equipment maintenance and service?

You are responsible during the loan and once you become the owner. An Equipment Protection Plan (EPP) and Customer Value Agreement (CVA) can help you budget and lock in these costs.

You are responsible for keeping the machine in good working order. Avoid non-compliance charges with an EPP and CVA.

You are responsible for keeping the machine in good working order. Avoid non-compliance charges with an EPP and CVA.

The equipment rental provider handles maintenance and service during your rental period, but these costs are likely factored into your rental payment.

What’s the next step?

Apply for an Equipment Loan.

Request a quote for an  Equipment Finance Lease.

Request a quote for an Equipment Operating Lease.

Apply for the Cat Card today or find The Cat Rental Store near you.