• Accounts Receivable Factoring

    Accounts receivable factoring is a financial tool that can help companies accelerate cash flow, improve collections and control exposure to bad debts. Essentially, it allows companies to acquire working capital to run their businesses and have the peace of mind that they’ll get paid for approved invoices in working with a factor. 

    To learn more about AR factoring, be sure to visit our knowledge center: What is Accounts Receivable Factoring?

    CIT provides the following commercial factoring services:

    Notification Factoring

    Notification factoring is a solution that assists companies focused on growth, expense control and risk mitigation. It provides an outsourcing option that includes, customer credit analysis, accounts receivable collections and accounts receivable bookkeeping at a cost generally less than what companies may incur if such functions were handled in-house. Accounts receivable are sold to CIT which underwrites the buyer's financial ability to pay, while typically providing 100% credit protection on approved and undisputed accounts.  The CIT Operations team collects the accounts receivable and processes payments while enabling  our clients to be informed of such transactions via a 24/7 online platform. Should a financing program be desired for growth, CIT can utilize the accounts receivable (and/or inventory) to create a revolving working capital facility. If a financing program is being provided by another lender, CIT can work alongside that lender by assigning the proceeds of the factored accounts receivable to that lender.  

    Non-notification Factoring

    A non-notification factoring program is similar in many aspects to the notification factoring described above. Non-notification factoring allows companies to utilize CIT for customer credit analysis while maintaining their own accounts receivable collections and bookkeeping departments. Accounts receivable are sold to CIT which underwrites the buyer's financial ability to pay, while typically providing 100% credit protection on approved and undisputed accounts.  Should a financing program be desired for growth, CIT can utilize the accounts receivable (and/or inventory) to create a revolving working capital facility to help a firm grow. If a financing program is being provided by another lender, CIT can work alongside that lender by assigning the proceeds of the factored accounts receivable to that lender. 

    See more about non-notification factoring in our knowledge center.

    International Factoring

    This factoring option is typically available on a non-recourse, notification basis, although non-notification may be available in some cases. It can be used to facilitate either import or export sales. For an import program, CIT provides credit protection with respect to a foreign supplier's US accounts receivable sold on open terms. CIT assumes the financial ability of the buyer to pay and also services the accounts receivable by performing credit analysis, collections, and bookkeeping.  

    Through the export program, CIT offers a financing solution for US companies selling internationally. CIT works with these companies to establish credit lines for their foreign buyers. CIT can also serve to manage overseas collections, accounts receivable bookkeeping, and reporting where desired. This tailored solution allows companies to increase export sales and reduce credit losses, while maintaining cash flow and controlling expenses.  

    Select Credit Accounts Receivable Protection

    This type of factoring can be provided on either a notification or non-notification basis. It is utilized by companies seeking to obtain credit protection on a select customer account or small group of accounts. CIT underwrites such buyer's financial ability to pay, while typically providing 100% credit protection on that individual customer or group of accounts. This solution is used primarily for customer accounts that pose a concern to the seller for any reason (e.g. concentration, marginal risk, etc).

    Benefits of Working with CIT for Accounts Receivable Factoring
    • Throughout our 100-year history, CIT has supported clients by providing financial flexibility and innovative solutions to facilitate growth.
    • Unlike some firms that enter and exit markets based on cycles, our commitment to the marketplace is unparalleled. We work with over 300,000 buyers who count on that commitment. 
    • CIT is the one of the most experienced providers in the factoring industry. We are a relationship driven organization that prides ourselves on our employee's experience, deep industry knowledge and our commitment to excellence.
    • We believe CIT offers best-in-class operations and systems to support your growth objectives.
    • Our internet based system is available 24/7 to support our client's needs.