How Cat^® Rental Fleets Help You Stay Adaptable in Uncertain Times

1. Less capital up front means more predictable budgeting

During a financial slowdown, your business may not have the cash on hand to buy new equipment, work tools or attachments. Or you may want to save your dollars for other priorities, like maintaining payroll or paying down existing debt.

Renting requires less of an upfront financial investment than purchasing equipment. You only pay for the time you need — a day, week, month or longer. It’s a predictable cost you can add into your budget. If work slows, you can return the rental and eliminate that expense right away. If work picks up, you can extend the rental or, in some cases, convert it into a purchase.

2. No maintenance, repair or storage expenses

When business is slow, every dollar counts. You want your team to focus on the tasks that make you money.

With most rental agreements, you don’t need to worry about the costs (or time) associated with maintaining, repairing, storing or insuring equipment. And you’re not responsible for depreciation, either. That can be critical during a downturn, when equipment resale value tends to drop.

3. Opportunity to build a competitive advantage

An economic slowdown means fewer projects, which results in more competition for every job. Why should a potential client choose you over other contractors? If you can prove you do high-quality work — and do it more efficiently than your competitors — you may be able to win more bids.

Rentals give you access to newer equipment models that can deliver a competitive advantage for your business. They're typically more fuel efficient, which may lead to lower operating costs. They generally offer more operator comfort features, which can help your team work productively all shift. And most come equipped with the latest onboard technology — like grade control, on-the-go payload weighing and automated controls — which can help you get jobs done faster.

When you rent equipment and other gear from your Cat dealer or Cat Rentals^SM, you have the option to pay with the Cat Commercial Account. This flexible, unsecured line of credit reduces the need for upfront capital and simplifies budgeting because you’ll be able to anticipate costs each month. 

Using the Cat Commercial Account to finance your machine rentals means you can get the equipment you need right away. Plus, Cat Commercial Account holders can earn Cat^® Rewards on every qualifying rental.* (*See cat.com/rewards for eligibility, details, and terms and conditions.) You can redeem those points for Cat Credits and put them toward your next rental or parts and services purchase from your Cat dealer or on Parts.cat.com.

WHAT ABOUT FINANCING EQUIPMENT DURING A SLOWDOWN?

There are plenty of reasons to rent equipment in an uncertain economy. But depending on your financial situation, heavy equipment financing with loans and leases may also be advantageous.

You can take out an equipment loan to retain the benefits of ownership, including potential tax advantages. A finance lease can lower your monthly payment and include the option to purchase equipment at lease-end. Or you can choose an operating lease for the lowest monthly expense. This comparison guide shows the differences between loans, leases and rentals side by side.

Also, keep an eye out for special financing offers. You could save money by taking advantage of competitive rates versus waiting to buy or lease until the economy stabilizes.

PREPARE FOR THE UNEXPECTED WITH CAT FINANCIAL

Rather than worrying about the next economic slowdown, it’s good business to be prepared. One simple step you can take today is learning more about Cat Commercial Account offers. You can complete the online credit application anytime with any device — it typically only takes a few minutes.