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Financing Options

Equipment Loans 

This option works best for the customer who needs financing for working capital, debt consolidation, sale lease-backs or other business purposes. 

Benefits:   

  • You may obtain cash for equity in your Cat equipment. 
  • Monthly, quarterly, semiannual, annual and variable payment schedules are available at fixed rates. Floating rates may also be considered. 
  • A line of credit may be established so that you can obtain loans as the need arises. 
Terms:
  • Length: 3-5 years 
  • Finance Rate: Generally Fixed (floating rates may be considered) 
  • Payment Flexibility: Monthly, quarterly, semiannual, annual, and variable payments 
  • Collateral: Required

Installment Sale Contract 

For the customer who desires immediate equipment ownership yet wants to pay for the machine over an extended period of time. Trade-ins or down payments are typically included in these transactions.

Benefits:   

  • You may claim the tax benefits of ownership - including depreciation and interest expense deductions. 
  • New and used equipment may be financed. 
  • The installment sale contract is our lowest total cost option for machine ownership. 
Terms: 
  • Length (new equipment): 1-5 years 
  • Length (used equipment): 1-4 years
  • Finance Rate: Generally fixed (floating rates may be considered) 
  • Down Payment or Trade in: Generally required 
  • Tax Benefits: Retained by customer 
  • Payment Flexibility: Monthly, quarterly, semiannual, annual, seasonal, skip and accelerated payments 

Finance Lease 

For the customer who wants to own or have the option to own the equipment under lease. 100% financing is available.

Benefits:   

  • 100% financing for qualified customers. 
  • Payments tailored to meet your cash flow needs. 
  • For tax purposes, in most cases you claim the benefits of ownership, including depreciation and interest expense deductions. 
  • Flexible purchase options available. 
Terms:
  • Length: 1-7 years 
  • Finance Rate: Generally Fixed (floating rates may be considered) 
  • Purchasing Alternatives: (1) Provision to purchase for as low as $1 (2) Option to buy at predetermined price or return machine. 
  • 100% Financing: Available for qualified customers. 
  • 100% Financing: Monthly, quarterly, semiannual, annual, seasonal, skip and accelerated payments.

Governmental Lease/Purchase Plan 

For qualified non-federal governmental agencies who desire special low interest rates and flexible finance terms. Please note that you may need voter approval as you would with local bond insurance.

Benefits:   

  • Because the income that we receive is tax-exempt, NMC can pass these savings onto you through special low interest rates. In fact, the interest charge you pay is normally less than the total cost of issuing a bond. 
  • 100% financing is available. 
  • Your contract may be cancelled without penalty (on the last day of the appropriations period) if funding is not approved for the following year. 
Terms: 
  • Length (new equipment): 1-7 years 
  • Length (used equipment): 1-5 years 
  • Payment Flexibility: Monthly, quarterly, semiannual, annual and variable payment plans 
  • Non-appropriations clause: May return equipment due to non-appropriation of funds. 
  • 100% Financing: Available for qualified customers.

Long-Term Rental 

For the customer who desires the lowest possible payments and generally plans to return the equipment to us at the end of the lease term.

Benefits: 

  • Generally qualifies for off-balance sheet financing 
  • Provides you with the lowest possible monthly payment 
  • Frees your working capital for operating needs 
Terms:
  • Length: 3-7 years 
  • Payments: Generally monthly, although other schedules may be considered 
  • Possible Purchase Option: Fair market value (FMV) purchase option may be included in contract 
  • Tax Benefits: Claimed by finance company

Value Option Lease 

For the customer who wants to use the equipment and have the option to purchase it at a predetermined price.

Benefits: 

  • Provides you with low monthly payments. 
  • Generally qualifies for off-balance sheet financing. 
  • Frees your working capital for operating needs. 
Terms:
  • Length: 3-7 years. 
  • Payments: Generally monthly, although other schedules may be considered. 
  • Possible Purchase Option: Predetermined 
  • Tax Benefits: Claimed by finance company.