New financing possibilities open for tractor firm

Under a partnership agreement, Mitsubishi subsidiary will provide inventory financing for LS Tractor dealer network

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Promotional image of an LS Tractor Canada XJ series tractor with a front-end loader and a 3-point backhoe attached.

A tractor company aimed at hobby farmers and rural property owners is getting a boost through a new finance agreement with a North American financing and asset solutions firm.

On March 5, Mitsubishi HC Capital America (MHCCA) announced a new partnership with LS Tractor that will see the former provide inventory financing for LS Tractor’s Canada and U.S. dealer network.

Inventory financing is a type of financing meant to help businesses obtain funds to purchase goods, supplies and materials.

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Why it Matters: The North America compact tractor market is expected to grow from US$1.44 billion in 2022 to $2.09 billion by 2030.

In a media release the day of the announcement, LS Tractor said it will leverage the financing program to help dealers optimize inventory levels in the face of growing customer demand.

LS Tractors manufactures sub compact, compact and utility tractors.

“We’re excited to partner with Mitsubishi HC Capital America to provide our dealers with a financing solution that truly supports their needs,” Evan Myungkook Lee, chief finance officer for LS Tractor USA, said in the release.

“As we continue expanding across North America, having a partner that understands our business, moves quickly and tailors solutions to our goals is invaluable. This partnership strengthens our ability to serve customers and positions our dealers for continued success.”

Matt Fitzjerrells, senior vice-president of inventory finance with MHCCA, added, “LS Tractor is a fast growing, customer focused organization and we’re proud to support their continued expansion. Our goal is to deliver a financing program uniquely aligned to their strategic priorities and their dealers’ success.”

Through the agreement, LS Tractor dealers will receive streamlined credit reviews, customized floorplan structures and “a finance partner committed to fast decisions and long term collaboration,” according to the MHCCA release.

“This relationship reinforces our commitment to helping manufacturers and dealers across both the United States and Canada achieve their growth objectives within the agriculture sector,” said Fitzjerrells.

About the author

Jeff Melchior

Jeff Melchior

Reporter

Jeff Melchior is a reporter for Glacier FarmMedia publications. He grew up on a mixed farm in northern Alberta until the age of twelve and spent his teenage years and beyond in rural southern Alberta around the city of Lethbridge. Jeff has decades’ worth of experience writing for the broad agricultural industry in addition to community-based publications. He has a Communication Arts diploma from Lethbridge College (now Lethbridge Polytechnic) and is a two-time winner of Canadian Farm Writers Federation awards.

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