Trade Finance
Through CIT Commercial Services (Europe) GmbH, we offer customized business credit and factoring services for European manufacturers and suppliers in a variety of industries, helping them improve cash flow, reduce operating expenses, eliminate credit losses and increase sales.
What We Do
Serving the global business credit needs of mid-sized businesses, CIT Commercial Services (Europe) GmbH, located in Frankfurt am Main, is the first CIT factoring office in Europe. Our goal is to be the leader in providing global trade finance solutions for importers and exporters.
As the companies we serve expand their reach globally, we, too, are concentrating our efforts globally. In addition to our presence in the United States and Germany, we provide factoring services at our offices in Hong Kong, Shanghai and Taiwan, which serve the Asian market.
CIT spans its international efforts throughout almost every continent. Today, we serve international trade business from China, India, Vietnam and other Asian countries that sell goods into the United States. We also facilitate trade throughout North and South America, from Canada to Brazil. Our presence in Germany will serve as a hub of factoring activity into and out of Europe.
Our Services
We provide many services, including:
- Full-service factoring
- Credit protection
- Import and export factoring
- Reverse marketing
- Business credit management
CIT financing and factoring services are tailored to meet the specific business needs of our clients. We help companies generate liquidity to meet their changing business needs during periods of growth or consolidation. Our services help companies manage their accounts receivable professionally, protect against bad-debt losses, improve credit risk management, and optimize balance sheet structure.
Invoice discounting allows you to unleash the value of your accounts receivable by converting your trade debts into cash. This is done by assigning the value of your trade debts to CIT Commercial Services Europe GmbH. In general, CIT provides your company between 75% and 90% of the total invoice value prior to collection. You will receive the balance, less service charges, when your customer pays.
The percentage of the total invoice value you receive upfront, known as the prepayment rate, will vary depending on the quality of the debt itself. This is determined by the creditworthiness of your customer, the quality of the proof of debt, or on the robustness of your business.
The Benefits of Factoring
There are a number of compelling benefits to factoring:
- Factoring allows you to focus on your core business - generating sales - in the knowledge that your sales ledgers and credit control are being expertly managed by a highly professional and experienced team
- Debt turn, or the speed at which your customers pay, can be substantially improved, thus reducing the amount you need to borrow
- As with invoice discounting, factoring releases the funds tied up in trade debts, often your biggest asset, allowing you to finance the change strategies that you need to implement in order to exploit new business opportunities
- In general, 100% credit protection on approved invoices
- Flexible, efficient and effective source of funding at a competitive price
Full Asset Financing
Matching the right funding to the underlying asset ensures that your business is in a position to meet the challenges ahead.
Where required, we may be able to source appropriate equipment or machinery financing through various CIT affiliates that specialize in this type of financing, in order to deliver a full asset-financing solution to you.
In addition, you have access to the full range of business credit services, such as structured acquisition finance from CIT Europe.
In all cases, our team will work with you to determine your specific requirements and will deliver the appropriate product combination for your business, either through our comprehensive product range or along with your existing finance providers.