RALEIGH, N.C., Oct. 18, 2023 /PRNewswire/ -- First Citizens Bank today announced that its CIT Commercial Services subsidiary, a national leader in factoring, credit protection and accounts receivable management solutions, recently closed three major client financing transactions.
CIT Commercial Services closed a $50 million factoring facility, which provides availability against both accounts receivable and inventory, to a Midwest-based supplier of home comfort products that are sold through major ecommerce sites, big box stores and brick-and-mortar retailers. The facility replaced the client's ABL facility with a major bank and will increase the client's financial flexibility without any cumbersome financial covenants. Annual factoring volume is expected to exceed $100 million.
A California-based wholesaler of health and wellness products to national online retailers and store-based pharmacy chains received working capital financing and a factoring facility.
A California-based wholesaler of socks and hosiery to large retailers and regional stores received a working capital facility and a factoring arrangement.
Both California-based companies are expected to generate in excess of $100 million in combined factoring volume, with working capital facilities totaling over $16 million.
"CIT Commercial Services is a client-focused, relationship-oriented business with a high-touch approach to service," said Michael Hudgens, president of CIT Commercial Services. "Once they get to know us, our clients often work with us for years and even decades for the financing, credit protection and accounts receivable services they need to grow their business over the long term."
A subsidiary of First Citizens Bank, CIT Commercial Services is one of the nation's leading providers of factoring, credit protection, accounts receivable management, supply chain finance and lending services to domestic middle market companies.
About First Citizens Bank
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in Raleigh, N.C., and now celebrating the 125th anniversary of its founding, First Citizens has built a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens offers an array of general banking services including a network of more than 500 branches and offices in 30 states; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; innovation banking serving businesses at every stage; and a nationwide direct bank. Parent company First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $200 billion in assets. Discover more at firstcitizens.com.
SOURCE First Citizens Bank