Asset-Based Lending: Factoring in Cross-Border Capabilities

If you’re doing business in both the United States and Canada, the ability to handle cross-border asset-based lending (ABL) and factoring easily and efficiently takes on critical importance. Mitsubishi HC Capital America’s cross-border ABL strengths are unique. Far more than a satellite sales office in a state or province, we provide inclusive, comprehensive financing for clients operating in either or both countries.

As a non-bank lender for OEMs, distributors, staffing companies, and dealers in the United States and Canada, we’re able to help businesses in virtually any industry. Whether in manufacturing, transportation or services, we make life a bit easier for people involved in the day-to-day business of managing balance sheets.

Living and breathing working capital

A true advantage to our business structure is the connectivity we maintain between our offices in the US and Canada. We maintain a strong presence in Canada, with full operations and credit teams in both English-speaking and French-speaking provinces. Many financing providers have a salesperson or an office in Canada, often in Ontario. Not so with us.

• Quebec connectivity: With full operations offices in Quebec, we understand the market. We know the language, culture, local rules and regulations, and the nuances that can affect financing. As a result, we can develop and implement flexible financing programs quickly and efficiently.
• Banking industry expertise: We not only understand banking regulations and policies in the US and Canada, but our teams work with bankers on a regular basis. We serve as a resource to their clients when they fall outside bank credit approval capability.
• Countrywide coverage: We can cover any area of both countries, from the Yukon to Newfoundland to San Francisco to Boston.

The credit advantage

Mitsubishi HC Capital Canada offers complete credit capabilities for Canadian as well as U.S. businesses. Serving as an external credit department for our clients, we can provide detailed insight into potential clients of our clients, and offer sound business input on their creditworthiness. We can analyze in-country, cross-border and international economics that may affect client decisions on extending credit. In some cases, we can help clients reduce exposure by advising them on setting lower credit limits or stricter payment terms.

For smaller and mid-sized Canadian businesses that don’t have their own credit resources, this capability can literally open doors to U.S. business. The same is true for businesses in the U.S. and because of our strong internal collaboration, we can substantially reduce the risk a business might encounter in starting to do cross-border business.

Funding with seamless speed

Another advantage to our cross-border ABL is the ability to provide funding in both U.S. and Canadian dollars. For instance, when working with a transportation company that has clients across Canada and the United States, we’re able to purchase approved accounts receivable – whether they come from either country, in U.S. or Canadian dollars. In addition, we can help with funding to other countries. Let’s say a Canadian company is selling to a client in Australia. We can buy their accounts receivables, too.

And we do it all quickly. In sharing a single technology system, we share information seamlessly between the two countries. Verifying an invoice of a U.S. company selling to a business in Canada is routine, simple and fast. The result is seamless speed. We have companies that factor with us daily. By being able to pre-qualify companies, we advance money on receipt of invoices. That means we are giving them the working capital they need to run their operations – to purchase gas, pay employees, buy needed supplies – on a daily basis.

Solving problems across companies and countries

The companies and scenarios we work with run across industries and sizes, and each has its own particular challenge. We work with companies that have headquarters in one country and subsidiaries in the other, CPAs with clients in both countries, and staffing companies based in the United States but doing significant work in Canadian retail stores. We’ve helped First Nation tribes, French-speaking businesses that pay invoices in U.S. dollars, and facilities in Canada that are manufacturing electric vehicle charging stations.

Serving as a non-bank finance provider has clear advantages in both countries. When it comes to cross-border ABL, those advantages multiply. Add in the hallmark Mitsubishi HC Capital America consultative approach to business, and we’re able to solve more problems, ease operations more and open doors to more business growth.

Let us know how we can help you with your cross-border factoring and ABL needs by clicking here if you’re based in the USA or here
for Canada.