Hitachi Business Finance, a division of Hitachi Capital America Corp., has provided nearly $100 million to a variety of specialty lenders and U.S. companies seeking working capital solutions over the past six months.
Participation loans to specialty lenders represent a growing portion of Hitachi Business Finance’s portfolio. In the past quarter, the company participated in five separate transactions totaling $75 million.
Hitachi Business Finance offers hold positions that range from $5-$25 million and potentially higher depending on the transaction. Proceeds are used for working capital (A/R and inventory), equipment/capex and growth capital, acquisition, turnaround, and recapitalization financing.
“As a specialty commercial finance company, syndication partners and clients both benefit from our competitive pricing, industry knowledge, and turnaround times,” says Mike Semanco, Hitachi Business Finance Division President and General Manager.
Additionally, Hitachi Business Finance provided financing to a transportation factoring company in Georgia. With a new $6.5 million line of credit, the company paid off its existing lender and plans to implement additional growth initiatives. Hitachi Business Finance also provided a $500,000 factoring facility to a Michigan-based staffing company in need of additional working capital to hire new employees and fund payroll.
“There really is no limit as to how asset-based lending can help companies grow. And regardless of the need or company size, asset-based lending continues to be an instrumental component to businesses that are looking to finance their operations with the use of their own collateral,” adds Semanco.