• Commercial & Industrial Finance

    CIT Commercial & Industrial Finance provides customized financing and advisory services in all stages of the business cycle, including working capital, growth capital, acquisition, debt refinancing, recapitalization and restructuring. We serve a wide range of industries including manufacturing, retail, restaurants, consumer products, and chemicals.

    Manufacturing Products & Services:

    • Working capital
    • Acquisition financing
    • Growth capital
    • Management buyouts
    • Debt refinancing
    • Recapitalizations
    • Turnarounds
    • Restructurings
    • Debtor-in-possession financing
    • Confirmation plan financing   

    Asset-based loans:

    • Senior secured revolving and term debt based on asset valuations 
    • Revolving lines of credit based on valuation of inventory and receivables and term loans based on valuation of fixed assets (including machinery, equipment and real estate)
    • Loans against valuable trademarks, patents, licenses and royalties     

    Cash Flow Financing:

    • Predominantly in connection with acquisition financing
    • Senior secured debt, which is based on a multiple of EBITDA and understanding of cash flow drivers
    • Reliance on a company's operating performance, management strength and competitive position

    Select stretch asset-based loans and hybrid structures:  

    • Senior secured revolver and term financing with advances beyond traditional ABL advance rates  
    • Reliance on cash flow and traditional asset-based analytics

    First out/unitranche structures:

    • On an asset-based or cash flow basis 

    Machine Tools Heavy Equipment Key Areas of Focus:

    • Manufacturers
    • Restaurants
    • Wholesalers and distributors
    • Chemicals
    • Select financial services
    • Retailers
    • Consumer products
    • Metals
    • Automotive
    • Other heavy manufacturing
    • Paper
    • Plastics
  • Select Commercial Finance Transactions

    CIT combines its deep expertise in creating financing and treasury management solutions with outstanding execution and service, helping our clients achieve their full growth potential. See our latest accomplishments: Tombstone Collage

  • Related Content

    CIT Executives provide their outlook on e-commerce and retail industry trends. [Q&A]
    Here are the 7 key indicators lenders look for in a restaurant franchise financing. [Article]

    You expect a few things when you visit your favorite fast-dining chain: cleanliness, prompt service, and consistency. The multi-location, same-flavor experience that defines food-based franchises has helped propel the industry to an estimated $340 billion in annual economic output, according to a 2015 report. 1

    For prospective operators who want a slice of the industry, there are expectations that go beyond menu items and counter service. Securing the right type of funding and managing capital at every stage of business is as critical as the quality of the food.

    Franchise 350x226 "Whether they're operating one restaurant or dozens, franchisees need a financing structure that helps them grow and adapt to an unpredictable environment," says Doug McKenzie, commercial leader at CIT Franchise Finance, a division of CIT Bank. "Franchisees rightfully put a lot of focus on operations, but they can limit their opportunities if they don't give the same attention to financing."

    The restaurant industry is a notoriously tough business, with some 60 percent of establishments failing within the first three years, according to University of Denver Professor H.G. Parsa, an expert on food trends. 2 Franchises hold appeal in part because of brand recognition and a proven formula that keeps customers returning. For first-time franchisees, assembling the cash to establish and operate the business can be a hard-to-fill order.

    For some would-be operators, tapping into the resources of their franchisors is the easiest approach to getting started. Many franchisors have relationships with lenders that can help to shorten the approval process. There is also the DIY route, utilizing retirement funds, lines of credit, and home equity loans, even bringing in business partners or investors. Federally backed SBA loans are also an option, and with the passage of the American Recovery and Reinvestment Act, the SBA now guarantees as much as 90 percent of the loan. However, as franchisees begin to expand their businesses, their financing needs may shift to a more complex legal structure comprising discrete entities taking on debt from multiple sources.

    Once a franchisee takes on a larger portfolio, it may be necessary to seek a financing partner that specializes in structured franchise financing. A specialized finance partner can help a franchisee to arrive at credit ratios that complement the company's current performance, develop an arrangement that supports future acquisitions, and leverage existing equity in the business so they can grow. 

    For growth-oriented franchisees, there are best practices to keep in mind. The businesses should be producing consolidated financial statements, ensure their premises lease agreements have extension options, understand their capex requirements, and not be over-levered. "Over-complicated organizational structures can create financing challenges in terms of reporting, securitization, and flexibility" McKenzie says.

    As franchisees add locations and expand operations, they may find that the ingredients that worked in the past fall short as they grow a business. Operations may be overextended, and in extreme circumstances, intervention may be needed. Creating a healthy capital structure is as critical as keeping the kitchen clean-maintaining order keeps trouble away and helps prevent surprises down the line.

    1 http://www.franchisedirect.com/information/foodfranchiseindustryreport2015/?r=4927
    2 http://daniels-pull.universityofdenv.netdna-cdn.com/assets/research-hg-parsa-part-1-2015.pdf

    The core 2016 back-to-school shopping season gave way to some interesting purchasing trends. On average, spending is up from the prior year, with those who began shopping in early July spending 27 percent more than those that began shopping in August or later. According to a recent study performed by Deloitte, while 61 percent of parents plan to do their research online, traditional school supplies like clothing, pencils, paper, notebooks and the like will be purchased at a physical store, putting brick and mortar in the lead this shopping season. 1

    Tablet user 350x192 Parents are still the primary decision makers when it comes to K-12 back-to-school shopping. But they are getting some help from their local schools in the form of supply lists. Some schools have circumvented the shopping process all together by offering preconfigured mommy packs. For a nominal fee that includes shipping you can have everything your child needs to start the 2016 school year delivered to the comfort of your home.

    Technology continues to win in 2016, with K-12 parents spending on average $343 on tech purchases. The numbers are higher for the parents of college freshman who spent roughly $470. 2  This is great news for consumer electronics retailers and manufacturers, as more will be spent on tech items this back-to-school season than in any other category.

    A breakdown of this tech spend shows that laptops will account for 49 percent of all planned tech purchases, followed by:

    • Tablets, 42 percent
    • Mobile devices, 31 percent
    • Headphones, 27 percent
    • Mobile phone plans, 22 percent
    • Desktop computers, 18 percent
    • Cameras, 14 percent  3

    When it comes to tech purchases, Amazon, Walmart, Best Buy, Target & Apple respectively are the preferred retailers. Interestingly enough, Walmart, Target & Amazon are the preferred destinations for back-to-school shopping across the board when it comes to technology, traditional supplies and apparel, with Walmart surpassing Amazon in the areas of traditional supplies and apparel in 2016.

    1 http://www2.deloitte.com/us/en/pages/consumer-business/articles/back-to-school-survey.html
    2 http://rubiconproject.com/insights-report/2016-back-to-school-consumer-pulse/
    3 http://rubiconproject.com/insights-report/2016-back-to-school-consumer-pulse/  

    *Total number of responses will equal more than 100% as study participants were are allowed to select multiple responses.