Hitachi Capital America Lands Trade Finance Takeover

Hitachi Capital America, Hitachi’s U.S.-based corporate finance operation, is broadening its position in the trade finance landscape through an acquisition of Global Technology Finance, which provides supply chain finance to value-added resellers targeting the technology sector, according to reports in Asset Finance International.

In a statement, Hitachi Capital America EVP and General Manager of Commercial Finance and Corporate Development Mark Duncan said the takeover will help the company expand its footprint in the technology sector.

“We expect [Global Technology Finance’s] platform to complement our strategy of delivering innovative financing solutions to the technology space,” he said. “As a non-bank alternative finance company, we have the means to expand their solutions, and offer enhanced certainty and flexibility.”

Following the acquisition, Global Technology Finance will become Hitachi Capital America Technology Finance, with the firm’s current president, Paul Stemler, retaining the same position of the new entity.

“Joining the Hitachi family of companies represents a significant opportunity for our company, our customers and our employees,” Stemler said in another statement. “Adding Hitachi’s scale, industry expertise and deep resources to our unique financing platform will allow us to broaden our supply chain financing solutions to include term loans, XaaS contract financing and end-user financing.”

Hitachi Capital Invoice Finance, another unit of Hitachi’s corporate finance operations, has been focusing on the role of financing to address small business cash flow concerns, as businesses are forced to accept longer payment terms from their customers. The company released data in 2017 that found nearly half of U.K. small businesses have turned down business because they could not deliver on an order or contract, due to “unreasonable” terms of a deal — either because the contract would not offer sufficient pay or because the customer had a reputation for being a late payer.