Mitsubishi HC Capital America offering CMC dealers up to 100% inventory financing

CMC North America dealers can finance up to 100% of equipment invoice value through a Mitsubishi HC Capital America preferred-lender program covering inventory, retail and rental financing. 

The program, announced July 6, expands the companies’ relationship, according to a Mitsubishi HC Capital Americas release. CMC provides sales, distribution and services for aerial platforms and related products, according to the release. 

The arrangement is exclusive and comparable to a right of first refusal, Lawrence Kunkel, vice president of inventory finance at Mitsubishi HC Capital America, told Equipment Finance News. 

CMC sought broader financing products, North American coverage and support for its rental strategy following months of talks, Kunkel said. 

The lender did not provide a first-year forecast but expects “significant volume,” Kunkel said. Dealer participation in inventory and retail financing will be its primary measure of early success, he said. 

Financing program covers inventory, retail, rental 

Inventory financing can cover up to 100% of invoice value, including applicable taxes, with pay-as-sold or maturity-based repayment options, Kunkel said. Curtailment schedules can be tailored to equipment types. 

Retail products include equipment loans, capital and operating leases, fair market value leases and terminal rental adjustment clause leases, Kunkel added. Rental equipment can be financed through the inventory platform or with a fixed-payment retail note, Kunkel said. 

“There’s definitely an economic benefit to having all the stops in the financing chain in one place,” he said. 

The lender uses centralized North American underwriting, electronic invoice processing, automated workflows and an online dealer portal. Transactions are available in U.S. and Canadian dollars, Kunkel said. 

Rental share expected to grow 

Rental is expected to account for a growing percentage of equipment dealers’ business as  customers remain cautious about capital purchases, Kunkel said. 

Kunkel attributed the expected shift partly to construction customers matching equipment use with individual projects, supporting demand for rentals and leases rather than ownership. 

Higher interest costs also are making dealers more attentive to inventory levels, ordering frequency and equipment turnover, Kunkel said. 

“In my 25, 30 years in the market, I’ve never seen a more focused ownership group and finance group at dealers,” he said. 

The market has shifted since the pandemic, when limited availability allowed dealers to sell equipment shortly after receiving it, Kunkel said. Dealers now must weigh how long new and used machines will remain in inventory against carrying costs, he said. 

Mitsubishi HC Capital America plans to emphasize consistent financing terms rather than short-lived promotions, Kunkel said. 

CMC did not respond to requests for comment ahead of publication. 

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