Feature: Caterpillar's innovative financial leasing services help customers achieve sustainable development

Over the past five years, service has always been a key focus in the implementation of Caterpillar's corporate strategy. Against the backdrop of the entire society's continuous emphasis on environmental responsibility and efficient resource utilization, Caterpillar is comprehensively developing innovative technologies and value services to support the long-term success and sustainable development of its customers. Against this backdrop, new service measures such as providing financing for refurbished equipment and new power upgrades have emerged.

Facilitate financing for refurbished equipment

With advanced technology, Caterpillar's refurbishment service can restore old equipment to a condition no less than that of new products, and even upgrade the technology of some equipment. Compared with purchasing new equipment, refurbishing old equipment not only incurs lower costs but also avoids material waste and environmental pollution caused by equipment scrapping, which is in line with the concept of sustainable development.

Winter, the off-season for engineering projects, is a good time to maintain, repair and renovate old equipment, but the pressure of cash flow often makes it difficult for customers to move forward. After the onset of winter in 2021, Mr. Ma, a customer from Northwest China, wanted to take advantage of the downtime to refurbish his Cat® excavator, but the financial pressure made him hesitate. After learning about this situation, Cat Finance immediately contacted the local agent and formulated a financing plan for refurbished equipment that met the customer's needs. This not only alleviated Mr. Ma's financial pressure but also enabled him to enjoy the limited-time preferential interest rate policy in winter. When spring came, this excavator was completely renewed and ready to be put into the new project.

For some customers, financing the purchase of second-hand equipment through refurbished devices is also a "very cost-effective" option. Mr. An, a client from Hunan, urgently needs a large-scale piece of equipment to build a newly contracted project, but lacks the funds to purchase brand-new equipment. After learning about Cat (Caterpillar) financing and the refurbished equipment financing service launched by the local agent, he first raised funds to purchase a second-hand Cat 374F excavator, and then refurbished the equipment through the refurbished equipment financing program. Before the renovation, the performance of this excavator, which had been working for 20,000 hours, was no longer at its best and was unable to meet the job requirements. After the renovation, the performance of the equipment was restored to a level no less than that of a new product. In this way, Mr. An was able to obtain the most suitable equipment at the fastest speed and in the most economical way.

To help customers meet the current environmental protection-related laws and regulations, Cat Finance has joined hands with local agents to launch a favorable "New Power Upgrade" financing plan. In 2013, Mr. He, a customer from Sichuan, purchased a Cat 323D L excavator through financing services. Nowadays, this equipment has been in operation for over 20,000 hours. All its internal and external components have been severely damaged and no longer meet the current emission standards. Mr. He chose the "New Power Upgrade" financing plan and carried out a comprehensive upgrade of the equipment.

More and more customers have completed equipment upgrades by financing equipment refurbishment. During the renovation and upgrade process, the original factory parts have given new life to the equipment that has been in operation for many years, enabling it not only to meet the current environmental protection laws and regulations but also to give customers confidence to undertake future engineering projects.

Multi-level services facilitate the development of customers

Customized financing solutions and related services are the touchstone for testing a vendor's understanding of customer needs. Even the best quality equipment needs maintenance and repair. If problems arise during the halfway point of an important project when funds are tight, or if the equipment malfunctions just after the warranty period, it will be a tricky situation for any customer. Cat (Caterpillar) financing provides customers with protection beyond equipment protection plans and standard warranties, thereby helping customers reduce the cost of unexpected maintenance.

For Mr. Pang, a customer from Chongqing who has a high labor intensity for the equipment and operates in two shifts every day, this plan can give him peace of mind and to a large extent help him save costs and reduce risks. In addition, when the customer wants to transfer the equipment, the equipment protection plan can also be transferred at the same time.

The safe and easy-to-use "24/7 online" service has become an important assistant for busy project clients to learn about relevant financing information. Customers can conduct online activities such as inquiring about sales opportunities, electronic signing, issuing electronic ordinary VAT invoices, and online inquiries.

For potential customers who are interested in purchasing equipment through financing, various online computing tools can help them quickly assess their purchasing power and repayment ability, and select the appropriate equipment model and financing plan.

Customers who already have a purchase intention can make one-stop purchases, handle financing procedures and obtain equipment protection plan services through local Cat (Caterpillar) agents, which is worry-free and convenient. Based on the client's industry, project and financial situation, Cat Financing can also provide highly flexible and customized financial leasing solutions.

Caterpillar is the first foreign-funded enterprise in China's construction machinery industry to establish a financial leasing company. In 2004, the launch of this innovative service model injected new vitality into the industry's development. With the continuous growth of customers' financing demands, Caterpillar established its second financial leasing service company in Shanghai in 2015. Today, Cat (Caterpillar) Financing is closely collaborating with Caterpillar (China) Investment Co., Ltd. and Caterpillar agents across the country to continuously innovate financial services and enhance customer experience.

Service is an important part of Caterpillar's corporate strategy. Cat Financing not only offers standardized financial leasing services but also customizes exclusive financial leasing products to help customers save more working capital. Through its global network of agents, Caterpillar provides high-value services to customers throughout the entire product life cycle. By developing innovative products, technologies and services, it helps customers build a better and more sustainable world.