Mitsubishi HC Capital America closed two inventory finance transactions, totaling $400 million, to separate specialty vehicle partners to boost their purchasing power and enhance liquidity.
Mitsubishi HC Capital America has worked with the one long-standing customer for 12 years, said Gary Furnas, Vice President and General Manager, Inventory Finance. “The relationship and trust we have developed with each other over time speaks to the ability of both the customer and our company to execute such a strong and mutually beneficial contract.”
The other transaction provides an increase to an existing line of credit for a specialty upfitter, who plans to use the funds to acquire van chassis that customers upfit and then sell to their end-user customers. “Demand for these specialty vehicles continues to grow rapidly,” said Furnas. “We always work to bring value to our customers and make it as easy as possible to understand and be successful in the commercial truck market. Our consultative approach is a tremendous value-add as we work to create a collaborative, customized financing solution that helps generate business growth opportunities.”
Inventory Finance at Mitsubishi HC Capital America
Inventory finance goes by many names in the industry, explained Furnas, including floor planning and wholesale finance. As a form of asset-based lending, the amount borrowed is determined by the value of the inventory. Wholesale finance lenders like Mitsubishi HC Capital America can advance rates up to 100 percent of a dealer’s invoice amount for new inventory as a line of credit.
Benefits of inventory financing include improved cash flow, reduced capital requirements and expanded inventory stocking levels for dealers. Additionally, inventory finance reduces open-account risk and administration for OEMs, upfitters, and chassis suppliers, enabling them to turn their receivables into cash. “As a non-bank wholesale finance lender, Mitsubishi HC Capital America can provide quick credit decisions and expedited funding,” said Furnas. “By offering tailored inventory financing programs, we enable our North American customers to build strategies to accomplish their growth goals and initiatives. We are here with the expertise, systems and processes to optimize financing structures and quickly close transactions.”
Cross Border Lending
Mitsubishi HC Capital America is unique in that its inventory financing solutions are fully integrated with its cross-border subsidiary, Mitsubishi HC Capital Canada. With lending capabilities spanning both countries, customers and partners can easily access unique programs with attractive flexibility and competitive terms. With fully staffed offices in both the United States and Canada consisting of credit, operations and sales leaders and executives, both organizations are experts in understanding market dynamics, local laws and regulations. With 15 physical offices scattered across both countries and a strong presence in every Canadian province, the company is perfectly situated to assist commercial businesses on either side of the border with bi-lingual sales and credit teams.