CIT's Fate Worries Retailers and 'Factor' IndustryBy
The retail industry is bracing for a possible bankruptcy filing by CIT Group (CIT). The New York-based commercial lender is the biggest player in the business of factoring, an age-old form of debt financing employed mainly by businesses that can't secure traditional bank loans or credit lines. By selling their receivables at a discount, these companies receive cash. Suppliers and apparel makers often rely on factoring to tide them over until retailers pay.
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