FINANCE: Cat Financial Takes The Lead
Recent Western Cape Business News
Further increasing its market gains in 2010, Cat Financial Services South Africa has experienced a 300% increase in business transaction volumes since its launch some 18 months ago.
“Put another way, we had 68 clients at the onset, which has now risen to over 315,” explains Wayne Morris, head of Cat Financial, “and these reflect the typical industry mix, from sole traders and medium-sized companies to Blue Chip mining and construction corporations.”
Underwritten by FirstRand Limited entity WesBank, Cat Financial was formed following a strategic agreement with Caterpillar Inc. subsidiary, Caterpillar Finance and is Barloworld Equipment’s asset financing arm for its full product range. (In addition to being the Caterpillar distributor for southern Africa, Barloworld Equipment is also the official dealer for Metso Minerals’ mobile crushing and screening range, and Atlas Copco’s blasthole drilling products in this region.)
“Our market share now stands at around 50% in terms of total Cat equipment sales within South Africa. And we have secured around 85% of all financeable deals for Cat equipment in key provinces that include Gauteng and KwaZulu-Natal,” says Morris.
These deals also apply to Cat Certified Used products – low hour machines that are sold into the market with a one year warranty.
“In fact we are now very competitive against cash, whether for once off transactions or via the standby facilities (prearranged credit lines) that we put in place for our clients,” says Morris.
These facilities are available to all clients, irrespective of their market size, and are structured following an analysis of their financial history.
“We encourage our clients to take the maximum allocation upfront irrespective of the actual initial drawdown,” he advises, “so they can optimise their competitiveness in responding to tender opportunities.”
As an added benefit, Cat Financial is also offering Barloworld Equipment’s 360º Solutions package on each machine sold. In addition to financial services, this package includes extended warranties and product support, all in one payment. In addition, highly competitive insurance services are provided.
Business News Sector Tags:
Fax 2 Email
Study IT Online
Work from Home