Cat Financial provides loans and finance leases to end-user customers primarily for the purpose of financing new and used Caterpillar machinery, engines and equipment for commercial use. Cat Financial also provides financing for power generation facilities that, in most cases, incorporate Caterpillar products. The average original term of Cat Financial's customer finance receivable portfolio was approximately 51 months with an average remaining term of approximately 27 months as of March 31, 2025.

Cat Financial typically maintains a security interest in financed equipment and generally requires physical damage insurance coverage on the financed equipment, both of which provide Cat Financial with certain rights and protections. If Cat Financial's collection efforts fail to bring a defaulted account current, Cat Financial generally can repossess the financed equipment, after satisfying local legal requirements, and sell it within the Caterpillar dealer network or through third-party auctions.

Cat Financial estimates the allowance for credit losses related to its customer finance receivables based on loss forecast models utilizing probabilities of default and the estimated loss given default based on past loss experience adjusted for current conditions and reasonable and supportable forecasts capturing country and industry-specific economic factors.

During the three months ended March 31, 2025, Cat Financial's forecasts reflected a continuation of the trend of historically low unemployment rates as well as global market uncertainty and continued actions by global central banks aimed at reducing inflation. Cat Financial believes the economic forecasts employed represent reasonable and supportable forecasts, followed by a reversion to long-term trends.

Cat Financial provides financing to Caterpillar dealers in the form of wholesale financing plans and working capital loans. Cat Financial's wholesale financing plans provide assistance to dealers by financing their mostly new Caterpillar equipment inventory and rental fleets on a secured and unsecured basis. In addition, Cat Financial provides a variety of secured and unsecured retail loans to Caterpillar dealers.

In general, Cat Financial's Dealer portfolio segment has not historically experienced large increases or decreases in credit losses based on changes in economic conditions due to its close working relationships with the dealers and their financial strength. Therefore, Cat Financial made no adjustments to historical loss rates during the three months ended March 31, 2025.

Cat Financial further evaluates portfolio segments by the class of finance receivables, which is defined as a level of information (below a portfolio segment) in which the finance receivables have the same initial measurement attribute and a similar method for assessing and monitoring credit risk. Cat Financial's classes, which align with management reporting for credit losses, are as follows:

Receivable balances, including accrued interest, are written off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible (generally upon repossession of the collateral). Generally, the amount of the write-off is determined by comparing the fair value of the collateral, less cost to sell, to the amortized cost of the receivable. Subsequent recoveries, if any, are credited to the allowance for credit losses when received.



(Millions of dollars)	Three Months Ended March 31, 2025						Three Months Ended March 31, 2024
	Customer		Dealer		Total		Customer		Dealer		Total
Beginning balance	$	258	$	4	$	262	$	276	$	51	$	327
Write-offs	(30)		—		(30)		(23)		(47)		(70)
Recoveries	10		—		10		15		—		15
Provision for credit losses 1	33		—		33		9		—		9
Other	2		—		2		(4)		—		(4)
Ending balance	$	273	$	4	$	277	$	273	$	4	$	277











Finance Receivables	$	21,964	$	1,377	$	23,341	$	20,413	$	1,794	$	22,207

1 Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables.



(Millions of dollars)	Three Months Ended March 31, 2025
	2025		2024		2023		2022		2021		Prior		Revolving Finance Receivables		Total
North America	$	—	$	2	$	5	$	4	$	2	$	1	$	2	$	16
EAME	—		1		1		1		—		—		—		3
Asia/Pacific	—		—		1		—		1		—		—		2
Latin America	—		—		1		1		—		1		—		3
Mining	—		3		1		1		—		—		—		5
Power	—		—		—		—		—		1		—		1
Total	$	—	$	6	$	9	$	7	$	3	$	3	$	2	$	30

	Three Months Ended March 31, 2024
	2024		2023		2022		2021		2020		Prior		Revolving Finance Receivables		Total
North America	$	—	$	3	$	4	$	2	$	1	$	—	$	3	$	13
EAME	—		1		1		1		—		—		—		3
Asia/Pacific	—		1		2		1		1		—		—		5
Latin America	—		—		1		1		—		—		—		2


Total	$	—	$	5	$	8	$	5	$	2	$	—	$	3	$	23

For the three months ended March 31, 2025, there were no gross write-offs in Cat Financial's Dealer portfolio segment. For the three months ended March 31, 2024 there were $47 million of gross write-offs in Cat Financial's Dealer portfolio segment, all of which were in Latin America and originated prior to 2020.

At origination, Cat Financial evaluates credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit ratings, loan-to-value ratios, probabilities of default, industry trends, macroeconomic factors and other internal metrics. On an ongoing basis, Cat Financial monitors credit quality based on past-due status as there is a meaningful correlation between the past-due status of customers and the risk of loss. In determining past-due status, Cat Financial considers the entire finance receivable past due when any installment is over 30 days past due.



(Millions of dollars)	March 31, 2025
	2025		2024		2023		2022		2021		Prior		Revolving Finance Receivables		Total Finance Receivables
North America
Current	$	1,359	$	4,932	$	2,741	$	1,347	$	787	$	181	$	394	$	11,741
31-60 days past due	4		37		38		29		14		4		3		129
61-90 days past due	—		18		14		6		5		2		1		46
91+ days past due	—		14		41		26		14		7		1		103

EAME
Current	323		1,188		817		479		246		128		—		3,181
31-60 days past due	—		8		8		7		4		1		—		28
61-90 days past due	—		6		8		5		1		—		—		20
91+ days past due	—		4		14		6		6		4		—		34

Asia/Pacific
Current	258		802		464		205		65		11		1		1,806
31-60 days past due	—		8		5		3		2		—		—		18
61-90 days past due	—		1		1		3		—		—		—		5
91+ days past due	—		2		2		2		1		—		—		7

Latin America
Current	260		738		332		190		46		7		—		1,573
31-60 days past due	—		10		7		4		1		2		—		24
61-90 days past due	—		3		2		2		1		—		—		8
91+ days past due	—		4		6		7		3		1		—		21

Mining
Current	184		861		699		396		174		80		23		2,417
31-60 days past due	—		2		—		—		—		2		—		4
61-90 days past due	—		—		—		—		—		—		—		—
91+ days past due	—		4		7		5		—		4		—		20

Power
Current	31		207		185		39		37		108		171		778
31-60 days past due	—		—		—		—		—		—		—		—
61-90 days past due	—		—		—		—		—		—		—		—
91+ days past due	—		—		—		—		—		1		—		1


Totals by Aging Category
Current	$	2,415	$	8,728	$	5,238	$	2,656	$	1,355	$	515	$	589	$	21,496
31-60 days past due	4		65		58		43		21		9		3		203
61-90 days past due	—		28		25		16		7		2		1		79
91+ days past due	—		28		70		46		24		17		1		186
Total Customer	$	2,419	$	8,849	$	5,391	$	2,761	$	1,407	$	543	$	594	$	21,964



(Millions of dollars)	December 31, 2024
	2024		2023		2022		2021		2020		Prior		Revolving Finance Receivables		Total Finance Receivables
North America
Current	$	5,340	$	3,035	$	1,567	$	980	$	244	$	23	$	385	$	11,574
31-60 days past due	30		42		29		18		5		1		3		128
61-90 days past due	9		14		10		6		2		1		1		43
91+ days past due	13		37		26		16		6		2		1		101

EAME
Current	1,235		874		532		285		92		72		—		3,090
31-60 days past due	7		10		4		3		1		—		—		25
61-90 days past due	3		4		1		1		1		—		—		10
91+ days past due	3		14		8		6		4		1		—		36

Asia/Pacific
Current	898		531		256		87		14		2		—		1,788
31-60 days past due	4		6		5		2		—		—		—		17
61-90 days past due	1		1		2		1		—		—		—		5
91+ days past due	4		1		2		1		1		—		—		9

Latin America
Current	800		363		220		60		8		2		—		1,453
31-60 days past due	4		6		5		1		—		2		—		18
61-90 days past due	1		2		1		—		—		—		—		4
91+ days past due	2		6		8		4		1		1		—		22

Mining
Current	924		755		444		206		67		34		21		2,451
31-60 days past due	—		1		—		—		—		—		—		1
61-90 days past due	—		1		—		—		—		—		—		1
91+ days past due	4		5		5		1		—		3		—		18

Power
Current	169		184		39		43		64		56		166		721
31-60 days past due	—		—		—		—		—		—		—		—
61-90 days past due	—		—		—		—		—		—		—		—
91+ days past due	—		—		—		—		—		2		—		2


Totals by Aging Category
Current	$	9,366	$	5,742	$	3,058	$	1,661	$	489	$	189	$	572	$	21,077
31-60 days past due	45		65		43		24		6		3		3		189
61-90 days past due	14		22		14		8		3		1		1		63
91+ days past due	26		63		49		28		12		9		1		188
Total Customer	$	9,451	$	5,892	$	3,164	$	1,721	$	510	$	202	$	577	$	21,517

Recognition of income is suspended and the finance receivable is placed on non-accrual status when management determines that collection of future income is not probable. Contracts on non-accrual status are generally more than 120 days past due. Recognition is resumed and previously suspended income is recognized when collection is considered probable. Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. Interest earned but uncollected prior to the receivable being placed on non-accrual status is written off through Provision for credit losses when, in the judgment of management, it is considered uncollectible.



(Millions of dollars)	March 31, 2025		December 31, 2024
	Amortized Cost		Amortized Cost
	Non-accrual With an Allowance		91+ Still Accruing		Non-accrual With an Allowance		91+ Still Accruing

North America	$	90	$	16	$	83	$	20
EAME	30		4		33		5
Asia/Pacific	4		3		5		5
Latin America	21		—		24		—
Mining	27		—		29		—
Power	1		—		2		—
Total	$	173	$	23	$	176	$	30

Cat Financial periodically modifies the terms of their finance receivable agreements. Typically, the types of modifications granted are payment deferrals, interest-only payment periods and/or term extensions. Many modifications Cat Financial grants are for commercial reasons or for borrowers experiencing some form of short-term financial stress and may result in insignificant payment delays. Cat Financial does not consider these borrowers to be experiencing financial difficulty. Modifications for borrowers Cat Financial does consider to be experiencing financial difficulty typically result in payment deferrals and/or reduced payments for a period of four months or longer, term extension of six months or longer or a combination of both.

During the three months ended March 31, 2025 and 2024, there were no finance receivable modifications granted to borrowers experiencing financial difficulty in Cat Financial's Dealer portfolio segment. The amortized cost basis of finance receivables modified for borrowers experiencing financial difficulty in the Customer portfolio segment during the three months ended March 31, 2025 and 2024, was $6 million and $3 million, respectively. Total modifications with borrowers experiencing financial difficulty represented 0.03 percent and 0.01 percent of Cat Financial's Customer portfolio for the same periods, respectively.

The effect of most modifications made to finance receivables for borrowers experiencing financial difficulty is already included in the allowance for credit losses based on the methodologies used to estimate the allowance; therefore, a change to the allowance for credit losses is generally not recorded upon modification. On rare occasions when principal forgiveness is provided, the amount forgiven is written off against the allowance for credit losses.