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Want to Form a Captive Equipment Finance Company?
Over the course of our careers, we’ve provided expert guidance to equipment sellers and manufacturers on how to successfully begin providing equipment leasing, financing and rental solutions to customers on a direct basis. (We are open to having an intro conversation with you on this subject .)
Beyond an intro conversation, we are open to providing detailed advice and guidance on a paid consulting basis. We are also open to discussing and considering the merits of forming joint ventures (JVs) with qualified equipment manufacturers and equipment sellers. (We have the appetite and resources to invest in worthwhile endeavors.)
Regardless, it begins with a conversation- which may or may not result in a paid engagement with us. (However, at the very least… It will provide a basis of understanding and serve as a catalyst as to whether we mutually agree that there is merit to proceed further.)
Some of the advantages of establishing a Captive include:
- Deep Product Knowledge and Specialized Support
Captives focus on financing the manufacturer’s own equipment, giving them an intimate understanding of features, lifecycle, and servicing requirements.
They can provide more targeted financing structures and service packages (e.g., extended warranties or specialized maintenance plans) that tie directly to the equipment’s use case.
The manufacturer often enjoys a higher level of control on the secondary market for off-lease, off-rental, returned and/or repossessed equipment.
2. Integrated Sales and Service Experience
Branding is enhanced through common organization naming conventions (i.e. XYZ Equipment and XYZ Capital). Because the financing arm is closely integrated with the parent manufacturer, the customer experience is more seamless.
Sales, financing, and after-sales support can work in tandem, streamlining the process and reducing the typical back-and-forth that may be seen with third-party lenders.
3. Promotional and Customized Programs
Captives often run promotions or incentive programs (such as “zero-interest” periods, flexible payment schedules, or cash-back offers) that are designed to drive sales of the manufacturer’s equipment.
They have flexibility in structuring creative deals—like bundling accessories, services, and financing—because their primary goal is to support equipment sales.
4. Long-Term Relationship Focus
Captive finance companies look to foster brand loyalty and ongoing relationships. That can translate into repeat-customer benefits or special loyalty promotions over time.
Their approval decisions can be more flexible, as they balance profitability from financing with the manufacturer’s broader sales goals.
5. Alignment with OEM Strategy
Financing programs are developed to align directly with the parent company’s strategy, whether that’s accelerating adoption of new technologies or increasing market share in certain regions or industries.
Would you like to discuss any of the above?