CIT, a division of First Citizens Bank, today announced that its Asset-Based Lending business has provided a $35 million revolving credit facility to Utopia Deals.

Based in Plainview, N.Y., Utopia Deals is a leading seller of linens, towels, bedding and other products to consumers and to business customers in the hospitality, healthcare, restaurant, fitness and spa sectors, among others. The company also has a strong presence on leading online retail platforms. 

For most banks with specialty finance groups the answer is no for several clear-cut reason, but it is not that simple of an answer for all banks with specialty finance divisions. This question is being hotly debated at the lower end of the market as many non-banks have successfully utilized one business development (BDO) team to sell both products.  Utilizing one BDO team to sell two products can work when there is a similar borrower profile that could dictate the credit going either way and a credit and portfolio team that is well trained in both products.  Good BDOs, both bank and non-bank alike, can use product, pricing and market flexibility to their advantage while utilizing one central back office for underwriting and portfolio management.  Why then do banks keep these groups separate?  The reason most banks don’t and shouldn’t combine ABL and factoring groups is that for most groups the underlying businesses, facility sizes, sourcing channels and credit risk are significantly different enough to merit separate divisions.