July 30, 2015
Stories this photo appears in:
As the retail industry has changed into a split personality of online and offline shopping, so too has the factoring industry that finances manufacturers’ production and sales to clients.
For nearly a decade, interest rates have remained near zero, meaning it was very inexpensive for businesses to borrow money. But those sunny days may be over. Twice this year, the Federal Reserve has raised the prime rate, and it is expected to do so again later this year.
The California Apparel News recently spoke with several finance-industry executives about what challenges and bumps in the road apparel manufacturers and retailers are facing this year now that the uncertainty of the presidential election is over, but another set of uncertainties have cropped up under a new administration.
In recent months, there has been some consolidation in the factoring and banking business, with CIT Group acquiring OneWest Bank and Sterling National Bank purchasing a factoring portfolio from First Capital Corp.