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.

Equipment financiers face exposure issues in key segments as pandemic-era risk management decisions continue to become portfolio problems.

While the pandemic-era supply shortages drove up used-equipment values, units financed at those higher values now represent delinquency and risk management issues, RJ Grimshaw, chief revenue officer at Orion First and former president and chief executive at UniFi Equipment Finance tells Equipment Finance News on this episode of “The Dig” podcast.

“Everyone’s portfolio performance over the last, [lets] call it five to seven years has been spectacular; better than historical average,” Grimshaw says. “Everyone was just focused on the origination aspect and how much capital can we deploy at a pace because that’s where it’s at.

But, he says, “They took their eye off the portfolio management aspects and risk mitigation part of the business, and, suddenly, they started exposing these issues because they weren’t focused on that.”

Grimshaw had a 27-year career in the equipment finance industry, including a decade at Unifi before joining Seattle-based Orion First in July, a full-service commercial loan and lease portfolio servicer.

Tune in to hear more about equipment finance people management, portfolio management, and risk management in the first episode of “The Dig,” formerly known as “Equipment Connect.”

Equipment financiers face exposure issues in key segments as pandemic-era risk management decisions continue to become portfolio problems.

While the pandemic-era supply shortages drove up used-equipment values, units financed at those higher values now represent delinquency and risk management issues, RJ Grimshaw, chief revenue officer at Orion First and former president and chief executive at UniFi Equipment Finance tells Equipment Finance News on this episode of “The Dig” podcast.

“Everyone's portfolio performance over the last, [lets] call it five to seven years has been spectacular; better than historical average,” Grimshaw says. “Everyone was just focused on the origination aspect and how much capital can we deploy at a pace because that's where it's at.

But, he says, “They took their eye off the portfolio management aspects and risk mitigation part of the business, and, suddenly, they started exposing these issues because they weren't focused on that.”

Grimshaw had a 27-year career in the equipment finance industry, including a decade at Unifi before joining Seattle-based Orion First in July, a full-service commercial loan and lease portfolio servicer.

Tune in to hear more about equipment finance people management, portfolio management, and risk management in the first episode of “The Dig,” formerly known as “Equipment Connect.”