Barely more than a month after drowning in a pile of bad real-estate loans, small-business lending giant CIT Group has emerged from the nation's fifth-largest bankruptcy ever, having knocked more than $10 billion off its debt. The financial services company says it's fit as a fiddle and ready to lend again.
Meanwhile, having been left in the lurch when CIT spiraled down, many small business have since moved on and found other lenders. Will they come back?
Possibly the only people who lost bigger than small businesses in the CIT bankruptcy were its stockholders, who were wiped out. But what will lure small businesses back to the company whose big claim to fame now is that it is the biggest financial-services company to tank yet survive the industry's recent implosion?
Maybe the $500 million CIT has set aside to support its Small Business Lending group, earmarked for SBA loans, and the $1 billion it's got available for vendor financing. CIT has also promised a 90-day waiver on loan-packaging fees.
But there are signs the bad press of the past months may be hard to overcome. Even CIT's factoring lending, which chugged on straight through the bankruptcy phase, is down 32 percent, CNNMoney reports.
Do you have dealings with CIT? If so, what's your take? If not, would you consider them as a prospective lender? Leave a comment and let us know what you think about CIT's rebirth.