JSM Financial: CIT Group Inc and GE Capital bolster their factoring businesses.

March 31, 2010 - PRLog -- CIT Group's arm, CIT Trade Finance, who focus on providing finance to small to medium-sized businesses recently announced that a subsidiary of the Hong Kong consumer goods firm Li &Fung Ltd had hired the company to provide factoring services, JSM Financial has learned. Factoring is the facility by which financial institutions advance funds against money that is owed to retailers and other business by their own customers.

The announcement closely followed GE Capital’s news that the finance arm of General Electric was to buy Royal Bank of Scotland Plc’s German factoring and invoice financing business for an undisclosed amount.

Since the onset of the global financial crisis, conventional banks have sharply cut back on lending in favor of shoring up their balance sheets, a practice which has, JSM Financial research indicates, helped non-bank lenders increase their business share.

"Today the banks are not posing any kind of competition because they're not lending," a managing partner at a New York investment bank said of the situation. "Grow while you can."


JSM Financial has learned that CIT has agreed to provide factoring services to Kids Headquarters, a U.S. designer, marketer and seller of children’s and young men’s clothing. The new deal is expected to give CIT Trade finance an increase of around $700 million in annual factored volume.

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