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Ralco Industries, Inc.

The Opportunity

Few sectors of the economy suffered more during the Great Recession than the automotive market and its supplier base. Ralco Industries was no exception. Prior to the Recession, the company had invested in a significant overhaul of its business process systems. While providing a competitive edge, it was very disruptive to implement and set the company back financially. While the need for financing was greater than ever, the economy was failing. Lines of credit were being called. Ralco was in desperate need of working capital and consistent cash flow.

The Strategy

Enter Hitachi Business Finance. Because of the strong management team at Ralco Industries and the existing knowledge of the automotive industry, Hitachi was able to extend an asset-based line of credit that used the company’s accounts receivable and inventory as collateral. The $1.25 million loan provided them a lifeline and a great deal of liquidity, which enabled them to finance the cost of launching a number of large jobs and cover their losses during the recession.

Existing knowledge of the automotive industry gave Hitachi Business Finance the advantage to remain confident in, and supportive of the business despite ongoing losses. The deficits were not a result of poor management, but of industry conditions that were expected to recover.

The Results

With the recovery of the U.S. auto industry and the successful launch of additional jobs, Ralco’s revenue and profitability grew dramatically. They were quickly able to establish a strong financial footing that positioned them for continued growth well into the future.


“The Hitachi team really took the time to understand our business. They took a good, hard look at our processes and products and could really understand what we do. Much more so than many other lenders.”

– Jim Piper, President



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