Hitachi Business Finance, a division of Hitachi Capital America Corp., recently participated in five syndicated transactions and provided two A/R financing facilities for a total of $74.2 million.
As participants in syndicated transactions, Hitachi Business Finance offers hold positions ranging from $5 million – $25 million. Proceeds are used for working capital (A/R and inventory), equipment/capex and growth capital, acquisition, turnaround, and recapitalization financing.
“Hitachi’s strength in the syndicated market comes from our background as a non-traditional finance company because our partners and clients can take advantage of our flexibility as a non-regulated institution and our competitive pricing,” says Syndicated Lending Originations Leader Thomas Bayer.
“There’s been a lot of positive movement lately in the syndicated markets,” says Hitachi Business Finance President and COO Mike Semanco. “But still there remains countless small- to- medium size companies that need critical funding to complete that next order, hire additional employees, or meet seasonal needs. That’s where our other financing solutions – A/R financing and asset-based lines of credit – prove to be beneficial.”
Most recently, Hitachi Business Finance provided a $700,000 A/R facility to an electrical control manufacturer in Florida and a $500,000 A/R facility to a recycling company in Michigan. Both companies have plans to use the financing for additional working capital and to pay off existing lenders.
Adds Semanco: “Post revenue companies in growth mode find that asset-based financing proves to be extremely valuable because as the companies grow, so does the financing. There’s never a worry about securing a new contract or making payroll because the working capital is already in place.”