General Employment Enterprises Inc. (NASDAQ: JOB) stock gained by 1.96% at last close while the JOB stock price rises by 3.88% in the pre-market trading session. GEE Group is a specialist staffing solutions provider and the heir of employment offices that have been in operation since 1893. JOB works in two industries, offering professional staffing services and information technology solutions.
What is happening?
GEE Group which is a prominent supplier of professional staffing services and human resources solutions, used CIT Group Inc.’s Asset-Based Lending business as the agent and only lender on a loan and revolving credit facility. The earnings of the loan will be utilized to repay current debt and provide basic operating capital. GEE Group, situated in Jacksonville, Florida, is a multi-brand national staffing and recruiting agency that offers services in the IT, legal, engineering, accounting and finance, healthcare, and industrial verticals through its professional and commercial business units.
CIT’s Asset-Based Lending division fulfills customers’ working capital requirements by leveraging accounts receivable, inventory, or fixed assets as collateral to minimize funding costs and lessen operational risks while enhancing profitability.
Derek Dewan, Chairman, and CEO of GEE Group stated
CIT’s experience in arranging asset-based finance to meet their working capital n and fund GEE Group’s expansion strategy was greatly appreciated. This funding is another step forward in their continued efforts to grow their business while maintaining a strong financial position and balance sheet.
Chris Esposito, managing director, and group head for CIT’s Asset-Based lending business commented
CIT worked closely with GEE Group’s leadership to fully comprehend their business and finance requirements, and they found that asset-based lending was the best option at this stage of CIT’s growth. CIT was happy to provide the funding they needed to continue their operations and expand in the future.