Hitachi Business Finance Completes Three Transactions Totaling $4.5MM

Hitachi Business Finance, a division of Hitachi Capital America, recently provided $4.5 million in financing to three growing U.S. companies seeking working capital solutions.

Of the new clients that received financing, the first offers energy saving solutions that works alongside traditional building insulation. Located in the Southern U.S., the company was growing rapidly and in need of financing to support cash requirements caused by a surge in new business. With a base of strong credit-worthy customers, the firm leveraged its accounts receivable with a $3.5 million factoring facility.

“When a company is growing rapidly but has a limited operating history, A/R financing offers the perfect solution,” said Regional Vice President and Business Development Officer Chris Mitchell. “This company now has additional cash on hand and can pursue lucrative contracts that will allow the company to expand to its fullest potential.”

The second client was an engineering firm located in Michigan. After seeing balance sheet losses over the past few years, the company was in need of an injection of cash flow to become profitable again. After meeting with a financing consultant, it was decided that a $750,000 A/R financing facility was the best course of action to secure additional working capital.

“We see this situation quite frequently – a company’s balance sheet will be upside down for a few years, but there’s a plan in place to become profitable again. This particular company has a very strong management team that has the tools to make the plan work,” said President and COO Mike Semanco. “One of the benefits of asset-based lending is that because we’re lending against A/R, inventory and equipment, we can look beyond the balance sheet and take a deeper look into the company’s management team and determine if the skill set is there to succeed.”

The third company to receive financing was a small automotive and aerospace consulting firm that conducts business with the U.S. Department of Defense. With a factoring facility of $250,000, the company can compete for additional contracts and has a more comfortable cash flow position.

Like this story? Begin each business day with news you need to know! Register now for FREE Daily E-News Broadcast and start YOUR day informed!

  • Hidden
  • RAM Group Holdings does not share or sell your personal information. The information we ask you to furnish is limited to what is needed to process your order fully and completely. You may unsubscribe at any time. View our Privacy Policy.
  • Please Confirm permission for Monitor/Monitordaily to e-mail you.
  • Hidden

Leave a comment

View Latest Digital Edition

Terry Mulreany
Subscriptions: 800 708 9373 x130
Susie Angelucci
Advertising: 484.459.3016

View Latest Digital Edition

Visit our sister website for news, information, exclusive articles,
deal tables and more on the asset-based lending, factoring,
and restructuring industries.