The provision demonstrates CIT's 'commitment to support CIT Trade Finance and our clients,' according to a July 31 memo sent to clients and industry associates.
The funds will help the unit meet its obligations and client needs as the parent company, which is struggling to avoid a bankruptcy filing, works on its restructuring plan.
'CIT Trade Finance remains open for business,' wrote the unit's president John Daly in the memo, a copy of which is available on the company's website.
CIT Trade Finance operates the lender's factoring business and is one of the company's most valuable units, a source close to CIT told Reuters earlier.
Factors buy receivables, or the right to receive money owed, from suppliers at a discount so that those suppliers can continue to have working capital. CIT gets paid back when retailers sell goods, typically within 90 days.
CIT lends to nearly a million small and mid-sized businesses and had a factoring volume of more than $42 billion in 2008.
CIT, which is trying to avoid a bankruptcy filing, secured a $3 billion emergency loan from some of its major bondholders earlier this month.
A CIT spokesman was not immediately available for comment.
(Reporting by Anupreeta Das; Editing by Carol Bishopric) Keywords: CIT/ (anupreeta.das@thomsonreuters.com; +1 646-223-6224) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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