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7/10/2019

Factoring Review and Case Study - Our Work with Tharanco Group – Apparel Industry

Tharanco Group looks to CIT’s commercial services business for accounts receivable factoring and financing services.  Tharanco Group is a privately-held holding company which includes an established apparel division that supports more than 20 brands ranging from couture to contemporary. Based in New York City, Tharanco Group started in 1988 as a manufacturer of private label apparel, providing branded goods to sell exclusively in a variety of well-known retailers. 

While the company does business with top retailers, Haresh Tharani, Tharanco Group Founder and Chairman, explained that one of the pain points in their business is knowing how a retailer will perform. Tharani said that this is “critical and a huge financial commitment, and CIT guides us through that effortlessly.”

Factoring helps solve cash flow problems

Tharanco Group relies on CIT for expert factoring services, one of the many products and services we have provided to the apparel industry for over a century.

Factoring with CIT helps Tharanco Group maintain its cash flow and reduce customer credit losses. Through the factoring process, we purchase Tharanco Group’s accounts receivable, handle the collection and ledgering process, and remit collected funds to Tharanco pursuant to a written factoring agreement.

By offering professional management of accounts receivable and providing a credit guarantee should approved customers fail to pay when invoices are due, we enable our clients to focus on what they do best: designing, merchandising and sourcing the product.

Success built from relationships and expertise

Supported by vast industry knowledge, we build strong relationships with clients as well as their retail partners. A keen understanding of the retailers our clients sell to is critical because we are making the payment if the retailer has an inability to pay. 

“CIT absolutely understands our business,” said Tharani. "Our colleagues are part of a family. My family includes CIT and they’ve really helped us grow."  

Watch this video to hear Haresh Tharani discuss more about the value of working with a factoring company and his long-standing relationship with CIT. 

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