Mrs. Nadene and Mr. Bob Desserich, Cheyenne Kubota, USA - Luyckx

What, specifically, does KCC do?
Sutton: Integrally related to the Kubota Tractor Corporation (KTC), KCC offers financing for customers
purchasing Kubota equipment from Kubota dealers. During the last four years, in particular, banks
have been reluctant to lend while at the same time customers have refrained from using up their cash
resources. That being the case, KCC has become an important factor in putting Kubota products in the
hands of customers. At one point, 70% of what was sold by KTC was financed through KCC. Since
then, however, that has gradually decreased so that the figure is approximately about 64% now.
KCC makes it happen! When a customer wishes to buy a Kubota product and electronically submits
an application to us, 95% of the time we have an answer within five minutes with 0% financing and
0% down. In this way the dealer knows he doesn’t have to let that customer walk out the door. KCC
tries to be as easy as possible to make it happen simply and quickly.
Could you give a brief outline of how KCC functions?
Sutton: First of all, KCC works hand-in-hand with KTC in the formulation of programs, policies, procedures.
Further, KCC works very hard to control its costs so that KTC can offer the most aggressive sales and
finance programs in the market.
In the realization that the wise management of limited cash resources in today's competitive market is
a vital factor of success, KCC provides fast and convenient payment alternatives in the safest, most
practical, and most economical manner possible to customers in the process of purchasing Kubota
equipment.
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Down Payment Options. Based on the individual needs of customers, it is possible to choose
from a variety of down payment options including equity financing, trade-in, cash, or a
combination of the foregoing. Equipment being traded in will usually cover a large portion of
the down payment requirements. Equity financing provides the customer with the option of
using the equity value of Kubota-owned equipment in lieu of part or all of the down payment.
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Fast Credit Approval. KCC makes every effort to streamline the lending process. As soon as
the completed credit information is received, the Kubota dealer receives a response almost
immediately.
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Easy Payment Plans. KCC offers a mixture of standard, short, and long term plans tailored
according to the model purchased, the amount financed, and customer income.
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Low APR Rates. KCC consistently provides customers with the lowest available
interest rates.
How about the relationship with the Kubota Tractor Acceptance Corporation (KTAC)?
Sutton: All the equipment that KTC dealers sell – particularly the equipment that KCC finances – is eligible
for the insurance offered to customers by KTAC to protect those investments. Consider a customer
who has equipment valued at from US$15,000 to US$20,000. If that equipment is destroyed as the
result of falling into a creek, for example, the investment is lost if it is not properly insured. With the
insurance offered by KTAC, if the customer totally destroys his equipment and agrees to purchase
similar Kubota equipment within 60 days, he or she will be reimbursed the original purchase price
even if it is up to five years later.
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