Accounts Receivable Factoring Services

CIT is one of the largest accounts receivable factoring companies in the United States. We have been in this business since 1928, making invoice factoring one of the oldest businesses of CIT.

CIT’s accounts receivable factoring includes four services:

  • Credit protection and advice
  • Accounts receivable bookkeeping, including EDI invoice and payment processing
  • Collections, cash management and lockbox processing
  • Accounts receivable financing, if needed

Click here to learn some of the basics of factoring

At CIT, we typically provide non-recourse factoring. We also call this invoice factoring, accounts receivable factoring, or AR factoring.  We also provide notification factoring and non-notification factoring.

Why use accounts receivable factoring?

Companies use factoring services for a number of reasons. Here are some of them:

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What types of companies can benefit from accounts receivable factoring?

Companies that can benefit from factoring include those that are:

  • Rapidly growing
  • Seasonal
  • Start-ups
  • Undercapitalized
  • Spin-offs
  • Concerned about adding fixed costs
  • Have a lengthy manufacturing cycle
  • Strained by slow turnover of receivables
  • Hurt by high bad debt losses
  • Saddled with a large customer concentration

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What costs are involved with accounts receivable factoring services?

There are two primary costs associated with factoring: the factoring commission and, if applicable, the interest charged on advances against receivables. The factoring commission is a percentage of factored volume, and is based upon these variables:

  • Annual factored sales volume
  • Average invoice size
  • Terms of sale
  • Number and type of customers

CIT’s interest rate is competitive with short-term revolving credit interest rates. Interest is charged monthly at a rate tied to major interest rate indices, usually with the addition of a margin, based on the daily amount advanced during that month.

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What is Factoring?

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