Credit Protection
CIT’s Credit Protection program can help protect your company against bad debt losses. It is an agreement between CIT and your company. CIT approves credit lines for your customers and assures their financial ability to pay. If a customer defaults, CIT assumes responsibility for payment.
Throughout the process, you maintain complete control over your bookkeeping and collection functions, while CIT approves credit, as well as assures payment in the event the customer defaults due to its financial inability to pay.
What services does CIT provide?
When you take part in CIT’s Credit Protection program, CIT:
- Performs credit investigations
- Establishes credit lines
- Maintains credit files
- Enhances payment
Your company maintains control over its bookkeeping and collection functions.
What are the benefits?
Eliminate credit losses
Whether you are entering new markets, selling to new customers or are concerned about your credit exposure to your existing customers, CIT’s Credit Protection can enhance payment on approved orders.
Avoid future credit problems
As one of the nation’s largest providers of credit protection, CIT is among the first to know when retail and wholesale credit problems arise. Put this knowledge to work for you.
Confidentiality
You can protect your company against bad debt losses without letting your customers know you are concerned about their creditworthiness.
Ease of implementation
CIT’s Credit Protection can be quickly implemented and integrated into your current operations. You maintain control over all bookkeeping and collection functions.
How does it work?
Step 1 - When you sign up for CIT’s Credit Protection, CIT will customize an order approval procedure.
Step 2 - You ship the approved orders to your customers.
Step 3 - You bill and ledger the accounts receivable and pursue diligent collection efforts.
Step 4 - Your report sales and accounts receivable aging to CIT monthly.
Step 5 - Within a predetermined time frame (i.e., 90 days past due), CIT will pay you for the full value of all approved, undisputed invoices that are in default.
