• Equipment Finance

    CIT Equipment Finance develops business solutions for small businesses and middle market companies for the acquisition of equipment and value-added services. It creates tailored technology and equipment financing and leasing programs for manufacturers, distributors, resellers, dealers, systems integrators and franchisors that are designed to help them increase their top and bottom line performance. It also acquires finance portfolios in its core markets: technology, office imaging, healthcare, industrial and franchise finance. Through these programs, CIT Equipment Finance provides a variety of financing and value-added services, from invoicing to asset disposition, customized to their customers' needs.

    Products & Services

    • FlexAbilityTM - Flexible Solutions for Selling and Invoicing 
    • Capital and operating leases 
    • Customized financing structures 
    • Collateral or cash flow loans 
    • Discounting programs 
    • Portfolio acquisitions 
    • Refresh programs 
    • Ownership programs 
    • Channel financing 
    • Financing of managed services and cloud solutions 
    • Robust web tools for clients and end user customers
    • Franchise Finance
    • 1:1 Personal services for major account customers

    Key Areas of Focus

    • US commercial customers of all sizes
    • Office Imaging industry (e.g., copiers, printers, scanners, document management systems, managed print services)
    • Technology industry (e.g. computer hardware and peripherals, software, cloud services, managed services)
    • Telecommunication industry (e.g., telephony office systems, telecom industry infrastructure)
    • Healthcare (e.g., medical and laboratory diagnostic equipment, imaging systems, patient monitoring systems, patient archiving and communication systems, electronic health records and other software systems, therapy devices, aesthetic equipment, pharmacy management equipment, dental and veterinary office equipment)
    • Industrial (e.g., construction and power equipment; agricultural machinery and equipment; light industrial equipment; robotics equipment; forklifts and other material handling equipment; food processing, packaging and labeling equipment; transportation vehicles such as over the road tractors and trucks, trailers, utility trucks, emergency vehicles; HVAC installations; fitness or other franchise specific equipment; golf course equipment; water purification; and safes)
  • What is Equipment Financing?

    Watch "The Benefits  of Leasing" to see how CIT partners with vendors to offer their customers customized equipment financing solutions.

  • Vendor Partners turn to CIT Equipment Finance to:

    • Sell more equipment and help increase margin
    • Improve cash flow and liquidity while preserving capital
    • Close sales quickly
    • Establish new relationships and increase customer loyalty
    • Minimize exposure and investment requirements
    • Have a relationship that eliminates the cost and administrative burden of maintaining an in-house leasing operation

    Customers turn to CIT Equipment Finance for:

    • Finance leasing with predictable, low monthly payments
    • Reduced upfront costs and preservation of capital
    • Flexible pay structures
    • Ability to bundle transactions
    • Keep up with changes to technology
    • Potential accounting and tax advantages
  • Resources


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    So you need financing for your restaurants? Just like packing for a trip, you need some standard items - things to keep in mind before you pick up that phone. Beyond the broad economic conditions, multiple factors weigh into the lender's credit decision. Here are seven to consider:

    Restaurant Franchise - thumbnail 1. Sector Trends

    Which of the main restaurant categories - full service, quick service, fast casual, and snack - are in growth mode and which are in decline? Is the Franchisor responding to, driving, or missing market changes and demands? There are always winners and losers. Although sector shifts don't happen overnight, most lenders take an extended view regarding portfolio performance, which extends years or even decades and must be cognizant of broad trends. Other considerations such as labor laws, supply-side input costs, demographics, household income trends, and interest rates will factor into a lender's overall assessment of the sector.

    2. The Brand

    How is the system performing based on key metrics such as Same Store Sales, average unit volumes, COGS & Labor expenses and operating margins, and expected unit-level EBITDA? Is the concept performing above or below industry averages? Is the P&L insulated or susceptible to material input or COGS changes? How does the franchisee's performance over the past three years stack up against these benchmarks? 

    3. Attrition

    There are two categories: orderly and disorderly. The former represents a controlled closure for strategic or financial reasons while the latter indicates an unintended closure caused by poor performance. Store closings in a system aren't always bad - they may be tied to a naturally expiring lease or relocation across the street to better suit traffic patterns. But unplanned closures are a definite red flag.

    4. Lease and Restaurant Franchise Agreements

    If the borrower's lease on the premises or restaurant franchise agreement expires without options prior to expiry of loan term, a lender will struggle to offer financing. For suppliers with short A/R lifecycles this is not a significant concern since their terms often run only 30 days in contrast to the five to 10 year term for a loan. Does the borrower own their dirt or rent third party? What is the rent factor and appropriate cap rate if the borrower is looking for real property financing as well? A lessee paying above-market rents has less capital leftover to make their debt payments and all fixed charges get factored into their debt servicing covenants.

    5. Ownership Profile and History  

    Is the proposed borrower a financial buyer with operating partners or an existing owner/operator? What is the purpose of the restaurant financing? Does the borrower have sufficient "skin in the game" and operating infrastructure to perform successfully? Is the partner growth oriented or content running a static business?  What are the borrower's short and long term objectives?

    6. Asset Quality 

    Are the restaurants in good locations? How long ago were they renovated and do they represent the standard for the system?  How will required renovations impact the valuation of the enterprise?

    7. P&L Adjustments 

    Every transaction has variables that impact the unit-level EBITDA. For example, a borrower with 10 existing stores may have sufficient corporate office infrastructure to absorb a five store acquisition without adding additional G&A expense thereby amortizing their cost base over a greater number of stores and enhancing the unit economics. Alternatively, a franchisee may be looking at a revised FMV lease structure at expiry of term that impacts his free cash flow negatively.

    Concurrent with analyzing these factors and criteria, lenders prefer long-term partners with growth potential. For CIT, in our decades-long experience supporting restaurant franchisees, we have found that a smaller number of lasting relationships works best for us as well as the clients. When we know a franchisee's business inside and out, it positions us as a trusted advisor to guide them in selecting the most appropriate finance products and structures to assist them in maximizing their performance. Any franchisee who requires restaurant financing should consider carefully not just the terms of a first transaction with a lender, but whether that lender is sincerely invested in their future.

    Get the Tip Sheet: 7 Must-Haves for Restaurant Franchisees Seeking Financing.

    Visit cit.com/franchise to learn more about the restaurant franchise financing solutions offered by CIT.

    To read the full article, go to the Knowledge Center on cit.com. If you enjoyed this blog post, please consider sharing it with your social media networks and invite them to register for our blog alerts.  

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