Europe
At CIT Commercial Services, Europe, we're striving to be a leader in global trade finance solutions for importers and exporters. And as the companies we serve expand their reach globally, we too are concentrating our efforts worldwide.
Our office in Frankfurt, Germany, serves as CIT's first factoring office in Europe. The addition of this new location in April 2006 is CIT's hub of factoring activity in and out of Europe.
Our Services
We provide the following services:
- Full service factoring
- Credit protection
- Import and export factoring
- Reverse marketing
- Credit management
CIT's factoring and financing services are tailored to meet the specific goals of our clients. We help companies generate liquidity to meet their changing needs during periods of growth or consolidation. Our services help companies manage their accounts receivable professionally, protect against bad debt losses, improve credit risk management and optimize balance sheet structure.
What is factoring?
Factoring allows you to unleash the value of your accounts receivable by converting your trade debts into cash. This is done by assigning the value of your trade debts to CIT Commercial Services, Europe. In general, CIT provides your company between 75% and 90% of the total invoice value prior to collection. You will receive the balance, less service charges, when your customer pays.
The percentage of the total invoice value you receive upfront, known as the prepayment rate, will vary depending on the quality of the debt itself. This is determined by the creditworthiness of your customer, the quality of the proof of debt or on the robustness of your business.
There are a number of compelling benefits to factoring:
- It allows you to focus on your core business - generating sales - in the knowledge that your sales ledgers and credit control are being expertly managed by a highly professional and experienced team
- Debt turn, or the speed at which your customers pay, can be substantially improved, thus reducing the amount you need to borrow
- It releases the funds tied up in trade debts, often your biggest asset, allowing you to finance the change strategies that you need to implement in order to exploit new business opportunities
- In general, you get 100% credit protection on approved invoices
- It's a flexible, efficient and effective source of funding at a competitive price
Full Asset Financing
Matching the right funding to the underlying asset ensures that your business is in a position to meet the challenges ahead.
Where required, we may be able to source appropriate equipment or machinery financing through various CIT affiliates who specialize in this type of financing in order to deliver a full asset financing solution to you.
In addition, you have access to the full range of corporate financial services such as structured acquisition finance from CIT.
In all cases, our team will work with you to determine your specific requirements and will deliver the appropriate product combination for your business, either through our comprehensive product range or along with your existing finance providers.