Done Deals

By Mike Semanco
President & CEO
Hitachi Business Finance

In a credit market where bank liquidity is at an all-time high and financial institutions are now lending to well-established companies, the argument for asset-based lending and factoring being used to fund high-growth, entrepreneurial companies remains very strong.

In the last 60 days, we have been able to provide eight companies the working capital financing needed to fund new growth opportunities. The common theme with these companies: new sales growth. The reasons why traditional sources could not provide them credit: lack of time in business, recent losses, too small of loan, and not able to increase current loan size just to name a few. In the lending industry, there we will always be a need for an entrepreneurial finance company who takes the time to understand a business and their cash needs and deliver a solution that fits.

In the world of asset-based lending, it’s not just about checking a box, a credit scoring model, or loan volume. It’s about doing what is best for your client and providing them a solution to help them grow. This is a recipe for a great partnership.

A Closer Look
A staffing firm in Virginia found themselves in need a financing – quickly.

The company, which has been in business since the late 1990s, provides IT, process, productivity, and software consulting to federal, state, and corporate customers.

After the 2013 federal sequestration and a few years of consecutive losses, the bank was no longer interested in financing the firm and pulled their loan. After searching for a new partner that would finance their working capital needs in quick order, they chose Hitachi Business Finance for their responsive time and ease of doing business.

With a new $1 million factoring facility in place, the company was able to pay off their bank and use the new source of working capital to support ongoing growth and day-to-day operations.