Finance
Equipment finance leaders urge collaboration as uncertainty persists
Facing excess inventory, elevated equipment prices and tightening credit, leaders in the equipment finance industry say collaboration among dealers, lenders and OEMs is key to finding stability amid economic uncertainty.
As dealer and finance operations expand nationwide, lenders must collaborate with trusted dealers to inspect and deliver quality equipment that meets customer needs, Jody Ray, vice president and relationship manager at BMO Bank North America, said during Equipment Finance News’ webinar today.
“That collaboration piece is crucial and critical,” he said. “In my world, we trust our dealers and we depend on them, almost solely, to be the eyes and ears, sometimes, of the lending team and the asset management team.”
Watch the webinar here
Dealers are the critical link between lenders and customers, providing visibility into real-world equipment conditions that influence credit and valuation decisions that would otherwise need third-party assistance for equipment monitoring, John Gougeon, president and chief executive of UniFi Equipment Finance, said during EFN’s High-priced used equipment inventory: The no-man’s land of equipment finance webinar.
“Nothing beats having eyes on the equipment,” he said. “We have some internal hurdles that may be deal size, cost of equipment or age of equipment that require us to seek third-party support or an inspection.”
Lenders, in turn, are rethinking financing structures, using flexible floorplans and tailored repayment schedules to protect dealer liquidity and accelerate inventory turnover.
“At the same time, we also have to look at the retail side of that when they sell the piece of equipment, and we’re looking at the customer of the dealership’s ability to purchase the piece of equipment,” he said. “As the lender, we’ll need to make sure that we’re on top of every piece of the transaction, so that we can make that a smooth and seamless transaction for our customer, the dealer and their customer purchasing the equipment.”
Excess inventory collaborations
Collaboration can also enable dealers, lenders and OEMs to address excess inventory, especially with strategic programs, Kevin Pate, director of fleet and heavy-duty equipment at Shoppa’s Material Handling, said during the webinar. More than 70% of ag equipment dealers and nearly 30% of truck dealers reported excess late-model inventory in the second quarter, according to IronAdvisor Insights.
The collaboration “would be something in the vein of a shared remarketing program, whether it’s a joint site where dealers that work with that vendor are able to load their assets, maybe not just what’s with that company,” he said. “You’d be looking for OEM-supported programs, similar to a certified pre-owned program, where they come with finance options, extended warranty options and things like that.”
Check out our exclusive industry data here.
Harley-Davidson’s new CEO wants to transform how people think about the iconic motorcycle brand, so the company is trying something different.
This week, Harley announced a new strategy that focuses on lower-priced bikes, rather than relying on older, more affluent customers to buy its higher-margin touring models.
“Back to the Bricks builds on our core strengths and competitive advantages, harnessing the passion of our riders to deliver profitable growth for the Company and both our dealers and shareholders,” Harley CEO Artie Starrs said this week. “As we drive towards this new phase of growth, we remain committed to the craftsmanship and dedication that define our brand.”
Entry-level Harley-Davidsons cost about $13,000, while the higher-end Adventure Touring models average about $23,250, and the Premium Range &CVO models cost about $38,500, according to Reuters.
Harley’s new strategy targets a core profit of over $350 million from its motorcycle business by 2027 and over $150 million in cost reductions.
To kick off the new strategy, Harley is introducing Sprint, a new entry-level model powered by a smaller 440cc engine, later in the year.
What is Harley-Davidson’s “Back to the Bricks” strategy?
Harley’s new strategy relies on more than just pushing buyers toward cheaper vehicles to increase volume. The 123-year-old company has a set of five pillars on which it is building its future.
Harley-Davidson “Back to the Bricks” 5-point plan
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Deep appreciation of Harley-Davidson’s competitive advantages and legacy: The Company’s iconic brand, diversified and powerful revenue channels, and best-in-class dealer network provide a powerful foundation for growth.
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Renewed commitment to exclusive dealer network to drive enterprise profitability: Harley-Davidson’s dealers are a competitive advantage. The Company is planning actions to enable dealers to double profitability in 2026 and then double it again by 2029.
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Immediate actions to recapture share in areas where Harley-Davidson has right to win: Harley-Davidson has strong legacy equity in existing markets including new motorcycles, used motorcycles, Parts & Accessories, and Apparel & Licensing. The Company’s new strategy is focused on positioning the Company to regain share and drive meaningful volume growth in categories where it benefits from credibility, scale, and deep rider connection.
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Strong financial position with a path to stronger free cash flow and EBITDA margin: Cost and restructuring actions already underway support a path to stronger free cash flow and EBITDA margin over time.
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Bolstered management team with balance of fresh perspectives and institutional knowledge: Harley-Davidson has made a number of leadership appointments that support the Company as it leverages its innate strengths.
Written by Jitendra Parashar at The Motley Fool Canada
Dividend investing can be one of the simplest ways to build long-term wealth while creating a steady stream of passive income. But in my opinion, a good dividend stock is about much more than just a high yield. Beyond dividend yield, investors should also look for companies with durable businesses, reliable cash flows, and a history of rewarding shareholders consistently over time.
That’s exactly why many investors turn to financial stocks. Banks and asset managers often generate recurring earnings through lending, investing, and wealth management activities, allowing them to support stable dividend payments even during uncertain market conditions.
Two Canadian financial stocks that stand out right now are AGF Management (TSX:AGF.B) and Toronto-Dominion Bank (TSX:TD). Both companies offer attractive dividends backed by solid financial performance and long-term growth strategies. In this article, I’ll explain why these two financial stocks could be worth considering for income-focused investors right now.
AGF Management stock continues to reward shareholders
AGF Management is a Toronto-based asset manager with businesses across investments, private markets, and wealth management. Through these divisions, the company offers equity, fixed income, alternative, and multi-asset investment strategies to retail, institutional, and private wealth clients.
Following a 59% rally over the last 12 months, AGF stock currently trades at $16.67 per share with a market cap of roughly $1.1 billion. At current levels, the stock offers a quarterly dividend yield of 3.3%.
One reason behind AGF’s strong recent performance is its increasingly diversified business model. The company has expanded its investment capabilities and broadened its geographic reach, helping it perform well across varying market environments.
In the first quarter of its fiscal 2026 (ended in February), AGF posted free cash flow of $36 million, up 14% year over year (YoY), driven mainly by higher management, advisory, and administration fees. These fees climbed to $92.5 million as demand for the company’s investment offerings strengthened.
AGF has also been focusing on expanding its alternative investment business and introducing new investment products. With strong cash generation and growing demand for alternative investments, AGF Management looks well-positioned to continue rewarding investors over the long term.
TD Bank stock remains a dependable dividend giant
Toronto-Dominion Bank, or TD Bank, is one of North America’s largest banks, serving millions of customers through its Canadian banking, U.S. retail banking, wealth management and insurance, and wholesale banking operations.
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