Citigroup is entering the transportation financing market, offering loans to both for-hire and private fleets.
Citi’s commercial business group will form a new division, called Citi Transportation Finance, to offer financing to trucking firms with minimum annual revenues of $5 million and the potential for near-term financing needs of at least $1 million.
“We are uniquely positioned to immediately provide capital, services and insight to transportation fleets based on our history and footprint,” said Tom Meredith, executive vp for Citi’s commercial equipment finance group. “We go beyond basic loans and leases by bringing in the breadth of products offered by Citi to our clients.”
He said Citi will focus on financing both new and used Class 3 to 8 trucks and trailers through a broad range of finance and lease products including direct loans, refinancing, TRAC leases, and FMV leases. Additional services will cover treasury and cash management, commercial mortgages, working capital, trade financing, and investment and wealth management through Citi’s partners, Meredith added.