CIT’s Trade Finance group launches CIT Factoring University today.
The educational program is available at CITFactoringUniversity.com, and is the first initiative under Trade Finance’s new president, Jon Lucas.
Lucas took over the post following the retirement of John Daly on June 29.
The new platform’s focus is to provide resource options for business owners and advisers on the benefits of factoring, as well as provide an understanding of what is factoring for those in industries outside of apparel and home goods, which are typically the sectors that use factoring on a regular basis.
According to Lucas: “We’re planning on flowing content onto the site on a regular basis. This is an active, not static, site with all kinds of different things such as videos, client testimonials and, in time, some articles.”
While virtually any sector can use factoring, Lucas said the top industries are fashion, sporting goods, home furnishings and footwear. Yet even those who operate in the technology space can avail themselves of the benefits of this finance vehicle, which is essentially customer credit protection for invoices generated when products are sold.
“The goal is to get a broader acceptance of the product,” Lucas said.
While some cynics might view the platform as a way to troll for new accounts — and Lucas doesn’t dispute that growing the business is a goal — the new president did emphasize one key benefit of factoring.
“Whether there’s an economic slowdown or just people selling into retail, factoring can turn receivables into cash a lot quicker,” Lucas said.