Just as shunned bank customers continue searching for credit sources, many of CIT Group Inc.'s smaller business clients may also turn to credit unions for alternative financing.

In a July 20 SEC filing, the lender said bankruptcy protection could be an option if it is not able to restructure some of its debts.

"CIT has a lot of challenges. They put together a short-term financing package that may not be that favorable in the short term to meet their liquidity needs," said Stan Van Aartsen, fixed income, senior research analyst, with MEMBERS Capital Advisors. "Personally, I think it delays filing for bankruptcy. The same underlying problems that existed two weeks ago, still exist."

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