MRO Magazine

CIT Executive Spotlight Examines Importance in Choosing a Capital Equipment Financing Partner


September 17, 2015
By Business Wire News

NEW YORK

Today’s market is saturated with capital equipment investment dollars from lenders that may not have expertise in the specific sectors in which they’re lending. And while the access to capital is a boon from a low interest rate perspective, the lack of industry expertise and understanding of a business can result in onerous lending terms when the market retreats. These are some of the observations presented by Eric Miller, Group Head and Managing Director of CIT Capital Equipment Finance, a division of CIT Group Inc. (NYSE:CIT), a leading provider of commercial lending and leasing services, in “Capital Equipment Finance: The Lifeblood of Growth,” (www.cit.com/miller) the latest piece of market intelligence in the CIT Executive Insights video series.

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Eric Miller, Group Head and Managing Director of CIT Capital Equipment Finance. (Photo: Business Wir ...

Eric Miller, Group Head and Managing Director of CIT Capital Equipment Finance. (Photo: Business Wire)

“Due to today’s positive market conditions, a wide variety of lenders can offer low rates without necessarily offering deep experience lending within a business’ particular industry,” said Miller. “This lack of expertise can cause friction when a sector goes through a natural cycle. A lender may try to impose harsh terms, underscoring a lack of knowledge about the industry and the business’ ability to operate in a natural downturn, which ultimately put the business at risk.”

Miller highlights several considerations middle market businesses seeking capital finance partners should consider:

  • Search for lenders that have industry expertise – Corporate borrowers should construct bids that will attract lenders with a depth of experience in their respective sectors. It’s much easier to deal with a lender that understands your business and its natural cycles.
  • Place a premium on tailored solutions – A lender should thoroughly understand the company’s business model, industry situation and the lifecycle of the specific equipment. By understanding the above, a lender can create a more tailored solution that can better withstand bumps in the road.
  • Think past the short term – The lender that offers you a low interest rate today may not be suitable when the market turns. New deal terms may put stress on liquidity, ultimately jeopardizing a business’ strength.

EDITOR’S NOTE:

CIT thought leadership content can be found at View from the Middle™ (cit.com/viewfromthemiddle) and our CIT Point of View blog (cit.com/pov). View our corporate video (cit.com/corporatevideo) and follow us on Twitter, LinkedIn, YouTube and Facebook. Register to receive press releases at cit.com/newsalerts.

About CIT

Founded in 1908, CIT (NYSE:CIT) is a financial holding company with more than $65 billion in assets. Its principal bank subsidiary, CIT Bank, N.A. (Member FDIC, Equal Housing Lender), has more than $30 billion of deposits and more than $40 billion of assets. It provides financing, leasing and advisory services principally to middle market companies across more than 30 industries primarily in North America, and equipment financing and leasing solutions to the transportation sector. It also offers products and services to consumers through its Internet bank franchise and a network of retail branches in Southern California, operating as OneWest Bank, a division of CIT Bank, N.A. cit.com

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C. Curtis Ritter, 973-740-5390
Senior Vice President of Corporate Communications
Curt.Ritter@cit.com
or
Matt Klein, 973-597-2020
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Matt.Klein@cit.com
or
CIT INVESTOR RELATIONS:
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Senior Vice President
Barbara.callahan@cit.com