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Captive Finance vs. Independent Finance

Finance companies are labeled by the manner in which they are structured. The differences between a Captive Finance Company and an Independent Finance Company become most important when determining which one can offer the best options and overall value proposition to the customer.

What is the Definition of a Captive Finance Company?

Captive Finance Companies are ones that are owned by the equipment suppliers/manufacturers. Because they are owned by the manufacturer they are able to provide customers with very low lease financing rates due to the fact that they have access to the manufacturer’s relatively inexpensive capital. Typically Captives can ONLY finance the manufacturer’s product line and are not able to provide lease financing for products from multiple manufacturers.

Captive Finance Companies tend to be the popular option when low cost is the only thing a customer is concerned about. Captive Finance Companies strive to build solid customer relationships but they are often limited by the financing restrictions and customer service policies placed on them by the manufacturers. This often results in the inability to be truly innovative, flexible and creative when it comes to designing lease finance solutions for customers…that is where the Independent Finance Company picks up the slack!


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Commercial Capital Company is a perfect example of an innovative Independent Finance Company. The term “independent” means just that, the company has the ability to make its own decisions as to what types of value propositions it wants to provide its customers. It is not dictated to by a manufacturer as to what type of equipment it can finance and is free to focus on any number of product sectors. They can pretty much finance any type of equipment.

Independent Finance Companies can also offer very competitive rates, although they are typically not as low as the rates Captives can provide. The big difference and benefit to working with an Independent is their ability to provide the options a Captive can’t. For example Independent Finance Companies, like Commercial Capital Company, can find innovative and flexible ways to tailor financing to a customer’s particular needs. They are nimble and fast and also strive to be super sharp when it comes to understanding the complexities of each customer’s business. Independents are the total package when it comes to flexible, innovative, entrepreneurial, nimble, creative and customer focused lease financing options!

Request a meeting with Commercial Capital Company, LLC

    Direct:  (913) 341-0053
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