1 / 11

Managing Your Finances

Managing Your Finances. Wes Hinton Marketing Development Consultant Caterpillar Financial Services Corp February 15 th 2011. Topics. Financing Sources Financing Options Be Educated. Financing Sources.

cira
Download Presentation

Managing Your Finances

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Managing Your Finances Wes Hinton Marketing Development Consultant Caterpillar Financial Services Corp February 15th 2011

  2. Topics • Financing Sources • Financing Options • Be Educated

  3. Financing Sources Traditional Banks – offer several options for financing including working capital loans, leasing, credit cards, etc. at competitive interest rate levels. Lending is typically not specific to limited industries. Independent Finance Companies – Finance any type of equipment without regard for the manufacturer. Reps typically have industry familiarity. Captive Finance Companies – Typically owned by the equipment suppliers and provide low rates. Based on their familiarity with the equipment and industry, risk tolerance level is typically higher than non-related lenders.

  4. Financing Options • Purchase • Lease • Rent

  5. Purchase • Ownership • Machine accrues equity • Trade-in value • Tax benefits: Depreciation

  6. If you decide to buy… • Installment Sales Contracts • Similar to auto loans • You own machine now • Build equity quickly • You take depreciation

  7. Leasing • Typically no down payment • Replace aging equipment with minimal capital outlay • Helps with planning • Easier to standardize • Tax considerations

  8. If Leasing… • Tax or Operating lease • Long Term Rental • Off balance sheet financing, which can help manage financial ratios • Payments typically expensed like a rental • Option to purchase at end of lease

  9. If Leasing… • Other Options • Finance Lease: Equity building lease • Flex leases: Predetermined “walk-away” options throughout the lease

  10. Renting • Good for jobs outside usual scope • No maintenance costs • Good way to test equipment Presented by Patrick A. Parsons, IPMA-CP, SPHR

  11. Be Educated Fees: Documentation, Origination, Prepayment Conditions: Lien Practice, Return Requirements, Grace Period Loan Flexibility: Loan Modifications, Skip Payments Read your documents and ask questions! The views expressed herein are the personal views of the author and are not intended to reflect and do not necessarily reflect the views of Caterpillar Inc.

More Related