Report: CIT stops backing Sears supplier loans
Hoffman Estates, Ill. -- According to a report by Bloomberg, CIT Group has decided to stop financing loans to suppliers waiting to be paid by Sears.
CIT Group has not commented on the matter.
Sears Holdings Corp. told Bloomberg that it disagrees with CIT's decision but said it won't have a big impact on its operations. It said that CIT's payables represented less than 5% of its inventories, and noted that other lenders are still financing the loans.