In an effort to help fellow finance companies secure new clients and opportunities, Hitachi Business Finance recently provided asset-based lines of credit to three fellow lenders through its successful Lender Finance program.
Lender Finance offers working capital lines of credit to factors and asset-based lending companies to help them build their portfolios, all while gaining access to the years of industry knowledge and experience at Hitachi Business Finance.
“As a finance company ourselves, we know this business inside and out. We know about growing pains, restrictive bank lines, equity requirements, and more,” says President and COO Mike Semanco. “That’s why Lender Finance is so valuable to asset-based lenders and entrepreneurial factoring companies. We have the understanding and familiarity to help others as they take their business to the next level.”
Benefits of Lender Finance:
- Credit lines up to $15 million
- Facility that grows as the business grows
- Minimal covenant requirements
- Competitive rates
The companies that recently began using the Lender Finance product are of various sizes and in locations across the United States. One such company, located in Maryland, was asked to leave their bank because of economic issues with their primary client base. At the same time, the company was also on the brink of bringing in a substantial account, and needed a new source of funding quickly. With a $7.5 million line of credit and expert guidance from the Hitachi team, the company was able to resume its growth and welcome new clients.
Another client, located in the Northwestern US, is a factor in the transportation arena and was financed by their local bank. The business was experiencing a significant period of growth, and the bank was no longer able to support their needs. With a $15 million line of credit from Hitachi Business Finance, the company can now continue its expansion plans knowing that their financing is secure and will grow as client borrowing needs increase.
The third client to take advantage of the Lender Finance program is new to the industry, having opened their doors in 2014. With decades of commercial lending experience in the leadership team, the company did not have the operating history to secure a traditional bank loan. With a $1 million facility from Hitachi Business Finance, the company can actively pursue new clients, hire additional staff, and implement new technology to meet clients’ needs.
“Our team has been providing commercial financing for decades, and we are using that knowledge to tailor programs to help other lenders fund new business opportunities,” adds Semanco. “In just the past six months, we have financed $23.5 million for fellow financing companies. Our specific type of funding is crucial to lenders because it can be a challenge to obtain it from a bank because of the specialized nature of the business.”
Hitachi Business Finance is a division of Hitachi Capital America Corp. and provides customized, flexible financing solutions for companies looking for creative options to grow and sustain their businesses. Our solutions include factoring, revolving lines of credit secured by accounts receivable, inventory, and equipment, and government contractor financing. Based in Rochester, Michigan with offices in Atlanta, we provide financing solutions for small to mid-market companies across the United States.