The Toro Co. has formed a joint venture with a TCF Financial Corp. subsidiary to provide commercial financing for Toro’s dealers and distributors.
The new unit, Red Iron Acceptance, will provide floor-plan and open-account financing for U.S. and Canadian distributors and dealers of Toro’s turf- and landscape-maintenance equipment and irrigation systems.
Toro is forming Red Iron with TCF Inventory Finance Inc., an indirect subsidiary of Wayzata-based TCF Financial Corp.
Red Iron will replace a commercial-financing partnership between Toro’s Toro Credit Co. subsidiary and GE Capital, General Electric Co.’s financing unit. GE Capital and another company, Clemmons, N.C.-based Sheffield Financial, will continue to provide financing for Toro’s retail customers.
Toro Credit Co., meanwhile, will be dissolved and its workers moved to Red Iron. Customer support services for Red Iron Acceptance will be located at Toro’s Bloomington headquarters. Back office operations will be housed at TCF Inventory Finance’s offices in Hoffman Estates, Ill.
Tom Evans, most recently senior relationship manager for GE Commercial Distribution Finance, will be the general manager for Red Iron Acceptance.
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