Xerox Holdings entered a forward funding agreement with PEAC Solutions to drive the continued growth of Xerox’s FITTLE business. FITTLE is a global provider of equipment leasing and financing solutions for businesses with a unique expertise in dealer and vendor financing programs in industries such as IT services, office equipment and 3D print.
Under the forward funding agreement, FITTLE can sell eligible pools of lease receivables, which PEAC Solutions is committed to purchase monthly. FITTLE will continue to service the lease receivables for a specified fee and will be paid a commission on lease receivables sold.
“Since FITTLE’s inception, we have been dedicated to being a best-in-class provider of leasing services and solutions, and this strategic shift in our business model will drive our next phase of growth,” Nicole Torraco, president of FITTLE, said. “With the majority of our future origination volume expected to be funded by third parties, we can expand the financing of our valued business customers and partners, and free up capital for Xerox.”
“Our new strategic partnership with FITTLE demonstrates PEAC Solutions’ innovative leasing capabilities, identifying us as a leading partner to both vendors and captive finance providers,” Bill Stephenson, global CEO of PEAC Solutions, said. “This new partnership represents an exciting opportunity for both FITTLE and PEAC and is one more step in executing PEAC’s growth initiatives.”
Xerox and FITTLE are exploring similar forward funding arrangements for other portions of FITTLE’s portfolio of future lease receivables, which are expected to provide incremental growth opportunities for the FITTLE origination platform.
Mizuho Americas acted as exclusive financial advisor to FITTLE in connection with the forward funding agreement.
