First Citizens Adds Factoring Option for Business Funding

March 6, 2000

RALEIGH ,N.C. - First Citizens Bank has added factoring to its business and commercial product line, giving companies an additional option for securing the capital to grow and operate their businesses.

Factoring is an increasingly popular financing method in which the bank will buy companies' accounts receivables and assume responsibility for collecting the debts. The cost is a small percentage of the collections.

T.E. "Pete" Williams, First Citizens' executive vice president for business services, said factoring appeals to all types of companies and can be used to accomplish a number of business goals. Companies often utilize factoring when they lack the assets to qualify for traditional bank loans, he said. Increasingly, though, companies that are growing quickly find factoring a viable tool for providing the funds they need for operations and expansion. Other companies simply benefit from outsourcing a portion of their debt collections, Williams added.

"First Citizens is proud to offer factoring as another tool that can give our business customers a competitive advantage," Williams said. "The advantage in factoring is that business owners can secure capital without increasing their debt or giving up equity. That can be very attractive."

Williams said factoring will complement First Citizens' growing line of products and services for businesses, including traditional loans, leasing, cash management products, business sweep accounts, insurance and merchant credit card services.

The Factoring Department, managed by Brenda Brown, is based in Greensboro. Factoring consultants will work with First Citizens' business and commercial bankers in all of the bank's markets to ensure that the method is explored as an option in financing packages.

First Citizens Bank has 362 branches in 205 communities in North Carolina, Virginia and West Virginia. Headquartered in Raleigh, the bank has $9.72 billion in assets. First Citizens is committed to providing superior financial services to individual customers and small to mid-sized businesses. For more information on the bank, visit our web site.

For more information, contact:
Barbara Thompson
First Citizens BancShares
(919) 716-2716