Citigroup launches trucking finance biz

TORONTO — Citigroup’s Commercial Business Group Capital says it’s entering the transportation fleet financing business.

The new division will be called Citi Transportation Finance and will provide financing for North American trucking companies and private fleets that have minimum annual revenues of $5 million and the potential for near-term financing needs of at least $1 million.

A Citi official confirmed the program is available to Canadian carriers as well.

“We are uniquely positioned to immediately provide capital, services and insight to transportation fleets based on our history and footprint,” said Tom Meredith, executive vice-president for the Commercial Equipment Finance Group, said in a press release. “We go beyond basic loans and leases by bringing in the breadth of products offered by Citi to our clients.”

Citi says it will focus on a full range of financial products and services that address the needs of transportation fleets and dealer inventories.

Equipment financed by this new business will consist of new and used class 3-8 trucks, tractors, and trailers. Citi will offer a broad range of finance and lease products, including direct loans, refinancing, TRAC leases, and FMV leases.

The company will also offer the full range of commercial banking products and services used by these companies such as, treasury and cash management, commercial mortgages, working capital, trade financing, and investment and wealth management through Citi partners.