74% of Survey Respondents Still Rely on Traditional Bank Loans—Is It Time for a New Financing Model?
As businesses across the transportation and manufacturing sectors grapple with economic uncertainty, rising equipment costs, and the urgent need to modernize operations, how they finance these investments has become a concern for many.
A recent survey by Mitsubishi HC Capital America reveals a clear gap between how companies currently acquire equipment—primarily through traditional bank loans—and their strong preference for more flexible, long-term financing solutions.
This gap represents both a challenge and a strategic opportunity: while businesses are actively investing in new equipment to remain competitive, many are limited by financing methods that no longer align with today’s economic realities. Especially as 39% of survey respondents reported economic uncertainty as their biggest operational challenge, while 74% reported that equipment costs have increased in the past year, innovative financing solutions are set to only become more critical to business success.
Key Survey Insights
According to the survey, 74% of respondents reported using traditional bank loans as their typical approach to acquiring new equipment, despite many expressing the need for more adaptable and flexible financial solutions. Only 17% currently use equipment leasing, highlighting a significant gap between current financing practices and alternatives that meet companies' needs. However, 45% prefer purchasing new equipment only, which is more expensive than buying used equipment. This suggests untapped potential for more tailored financing models that help businesses adapt to the current market.
The data also reflects ongoing investment activity, with 47% of organizations purchasing new equipment within the last year, and another 41% making purchases in the last one to three years. Despite persistent economic pressures, this continued investment indicates a clear intent among businesses to modernize and future-proof their operations. To that point, companies will continue to invest despite financial challenges, suggesting that financing solutions that preserve cash flow while enabling modernization are the best fit to meet market needs.
Lastly, transportation was the most represented industry compared to manufacturing, with 51% of respondents identifying it as needing the most modernization. Respondents cited concerns about the industry's instability and low profit margins as the main challenges, highlighting the need for financing solutions that address cash flow pressures.
Mitsubishi HC Capital America’s alternative financing solutions are uniquely positioned to address this gap. By offering flexible, industry-specific financing options, particularly for transportation businesses navigating shifting market conditions, Mitsubishi HC Capital America enables companies to invest in modernization without being constrained by rigid lending structures. As the survey results show, aligning financial strategies with current business realities is not just beneficial—it’s essential for resilience and growth.
To learn more about Mitsubishi HC Capital America’s latest survey results, click here.