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10/23/2019

The Most Dynamic Form of Asset-Based Lending: Factoring

Searching for the keys to success in the consumer product and manufacturing industries? Growing your middle-market company hinges on liquidity, cash flow and working capital financing. Finding a finance partner who deeply understands the seasonal cycles of a wholesale business is mission critical – especially if you’re in the $50 million to $750 million revenue range.

A legacy of providing value

CIT has a century’s worth of experience providing value through accounts receivable (AR) management and financing. Another term that’s commonly used is factoring. Traditional non-recourse AR factoring is growing in new and exciting directions.

The off-balance sheet nature of factoring is a game-changer for publicly traded and private equity-owned companies in today’s market. You might have heard of factoring as a “last resort” involving a transfer of your AR to non-bank companies for significant fees in exchange for cash. Working with CIT for factoring is different.

The CIT factoring model

Our model is a natural expansion of the traditional bank asset-based lending (ABL) product, where the borrower receives superior liquidity and outsourced AR management services – all at a fraction of the cost of managing receivable functions internally. CIT’s factoring model typically includes a sale of AR to CIT, so you can unlock significant growth potential through selling sizeable and risky AR portfolios. This can be done on an ongoing basis or in bulk at key points in your fiscal year.


Working together to achieve your goals

These benefits aren’t the only gains to be made from outsourcing your AR management. Ask any factor you’re considering about its risk management and collections expertise. At CIT, we can help you avoid bad debt losses and enable you to focus on what you’re best at: Serving your customers.

As you search for dynamic liquidity, flexibility and balance sheet presentation for your company, consider capitalizing on your AR with factoring. CIT is an industry leader in the non-recourse factoring space, and we’re well positioned to provide you with dynamic growth financing when you’re ready.

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