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No more CIT loans for Sears suppliers

Updated: February 14, 2012 8:14AM

Sears says that CIT Group Inc. has decided to stop financing loans to suppliers waiting to be paid by the retailer.

But Hoffman Estates-based Sears Holding Corp. says the decision won’t have a big impact on its operations. It says that CIT’s payable represented less than 5 percent of its inventories.

New York-based CIT Group Inc., which makes loans to small and mid-size businesses, says it doesn’t comment on specific customers.

Sears says it disagrees with CIT’s decision, noting that other lenders are still financing the loans. It also pointed to its $4.2 billion in liquidity, along with its recent restructuring moves and cost cuts.

But last week, the company said it expects its fourth-quarter profit to be half of what it was last year. AP

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