Balanced partnerships overcome high interest rate challenges
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There are two keys to success in the equipment finance industry in a high interest rate environment: adequate vetting and balanced partnerships.
Partnerships in the industry are the best means for companies to meet their goals and objectives, but aligning the partners' goals equally remains key, Brian Rosa, president of commercial finance at Mitsubishi HC Capital America, tells Equipment Finance News in this episode of “The Dig” podcast.
Brian Rosa became president of commercial finance following the April 1, 2023 merger of Mitsubishi HC Capital America, ENGS Commercial Finance and Mitsubishi HC Capital (USA), operating under the name Mitsubishi HC Capital America, and over the past seventeen months, Mitsubishi HC Capital America announced several new partnerships.
Mitsubishi HC Capital America recently partnered with the PulPac and the Seismic Group to finance sustainability equipment and technology, according to a Sept. 10 release.
“Generally, both companies’ goals and objectives need to be aligned, and it's also important that the benefits derived from the partnership are equitable for each party,” he says. “I don't think I've seen too many partnerships where one party is getting considerably more benefit than the other. Those partnerships typically just don't work out in the long term, so we want to make sure we're aligned and we're each getting equal benefits.”
Another key component of equipment finance partnerships is developing partnerships that can exist across both strong and weak business cycles, Rosa says.
“The higher interest rates coupled with inflation have created challenges for many companies, and it's led to some volatility in certain sectors, so when we partner with someone, we want to know we'll be able to count on them just as they would expect to count on us through the ups and downs.”
Tune in to the newest episode of “The Dig” to hear from Rosa about equipment finance partnerships, market outlook and market opportunities.
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