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“2011 U.S. Factoring Overview” Featured on CIT’s “Executive Spotlight” Series
Monday, March 28, 2011 08:35 AM
In the event a retailer becomes insolvent or financially unable to pay, the factor (CIT) will pay the supplier for the full undisputed amount due on all credit approved accounts receivable.

NEW YORK--(BUSINESS WIRE)--Factoring today remains an important form of liquidity for small and mid-sized companies according to Jonathan Lucas, Chief Sales Officer for CIT Trade Finance, at CIT Group Inc. (NYSE: CIT), a leading provider of financing to small businesses and middle market companies. This is just one of the insights Lucas offers in his “2011 U.S. Factoring Overview,” the latest in a series of in-depth executive Q&As featured in CIT’s “Executive Spotlight” series (http://executive-spotlight.cit.com).

Lucas explains how factoring plays a vital role in trade flows by providing credit protection to suppliers of retail when he states, “In the event a retailer becomes insolvent or financially unable to pay, the factor (CIT) will pay the supplier for the full undisputed amount due on all credit approved accounts receivable.”

In addition to providing credit protection, Lucas says suppliers are looking to factors as a source of capital, “Factoring is also attractive for the liquidity it may afford a company. Many suppliers borrow against the value of their accounts receivable, so factoring enables a supplier's financing to grow as its receivables grow. ….Factors provide working capital financing, which is the lifeblood of a company and is especially critical for small- to mid-sized businesses.”

In discussing his outlook for the retail sector in 2011, Lucas comments, “Looking ahead toward 2011, retail activity remains uncertain due to a number of reasons, including: expected high unemployment levels, the slow recovery of the housing market, high energy prices, and high commodity prices. In terms of retail categories that should perform well this year, I believe well-recognized, branded merchandise will see growth as consumers continue to look for products with a perceived added value.”

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About CIT Trade Finance

CIT Trade Finance is the number one provider of factoring services for companies that sell into retail channels of distribution. It provides credit protection, accounts receivable management and asset-based lending to manufacturers and importers.www.cit.com/tradefinance

About CIT

Founded in 1908, CIT (NYSE: CIT) is a bank holding company with more than $35 billion in finance and leasing assets. It provides financing and leasing capital to its more than one million small business and middle market clients and their customers across more than 30 industries. CIT maintains leadership positions in small business and middle market lending, factoring, retail finance, aerospace, equipment and rail leasing, and global vendor finance. www.cit.com

Contact:

CIT MEDIA RELATIONS:
C. Curtis Ritter, 973-740-5390
Vice President
Director of External and Internal Communications & Media Relations
Curt.Ritter@cit.com
or
CIT INVESTOR RELATIONS:
Ken Brause, 212-771-9650
Executive Vice President
Ken.Brause@cit.com