CIT Trade Finance Releases 2011 U.S. Factoring Overview

Jonathan Lucas, chief sales officer for CIT Trade Finance, a leading provider of financing to small businesses and middle market companies, recently released his “2011 U.S. Factoring Overview,” the latest in a series of executive Q&As featured in CIT’s “Executive Spotlight” series.

Lucas says suppliers are looking to factors as a source of capital.

“Factoring is also attractive for the liquidity it may afford a company,” he says in the overview. “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.”

Lucas also says the factoring industry is correlated with retail sales.

“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,” he says in the overview. “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.”

To view the full 2011 U.S. Factoring Overview, click here.

TemPay provides unlimited funding and back-office support solutions, including factoring, to the temporary staffing industry. For more information on TemPay and its factoring services, click here.