Automation can help small and midsize manufacturers address labor shortages, control costs, improve safety, and drive growth. However, financing is often a barrier to adoption. Mitsubishi HC Capital America Inc. yesterday announced that it is adding to its portfolio of automation-as-a-service, or AaaS, financing.
Similar to software-as-a-service and robotics-as-a-service (RaaS) business models, the company said it can help the industry keep up with the demand for leading-edge technology and drive growth.
“High costs and rapid advancements in automation and robotics equipment make it uniquely suited for 'as-a-service' financing,” said Jason Koby, senior vice president for sales and vendor finance at Mitsubishi. “Mitsubishi HC Capital America’s customized solutions provide the use of a piece of equipment that for many businesses would be otherwise unattainable.
The specialty finance unit of Mitsubishi said it brings a consultative approach and expertise to customers of all sizes to help their businesses grow. It partners with customers to provide customized financing for a wide range of industries, including manufacturing, construction, work trucks/transportation, IT, staffing, healthcare, and clean and mobility technologies.
Norwalk, Conn.-based Mitsubishi HC Capital said it is committed to the U.N. Sustainable Development Goals to improve the communities in which operates.
Mitsubishi HC Capital America offers OEMs subscriptions
Mitsubishi HC Capital America said it is working with OEMs to provide financing for automation and related robotics deployments. The company bundles the costs of equipment, software, supplies, and servicing into one affordable monthly payment for robotics businesses.
The advantages of AaaS include the familiar benefits of financing such as preserving cash for other business uses and faster return on investment (ROI), said Mitsubishi. The AaaS subscription model differs from traditional lease structures in that it isn’t bound to a specific piece of equipment, so end users have access to the latest technological upgrades and avoid the risk of obsolescence, it said.
Manufacturers are finding that offering AaaS financing is critical to their competitiveness, as well as that of their customers, claimed Mitsubishi HC Capital America. The company said that by providing private-label financing for OEMs in the robotics sector, it enables their end users to have a seamless customer experience and helps build customer loyalty.
“With businesses more familiar with and receptive to subscription model services, AaaS reframes the thinking around ever owning equipment again,” noted Koby.
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