This is a guest post from Larry Dignan of TechRepublic’s sister site ZDNet. You can follow Larry on his ZDNet blog Between the Lines, or subscribe to the RSS feed. 

The failure of CIT, a financial services firm that lends to small and mid-sized business, has reportedly been averted for now.

The Wall Street Journal reported that CIT’s bondholders are floating the company $3 billion in a last minute rescue.

For Dell, Avaya, and other businesses that depend on CIT for financing the news is a relief. As noted previously, a CIT failure had the potential to be a big problem for tech spending.

The big question is whether CIT’s lifeline will lead to a permanent fix of its capital structure. The extra $3 billion does buy some time though. Another uncertainty is whether CIT financing partners will stick around or find alternative financing. Companies like Dell and Avaya are likely to look for other financing arrangements just to be safe.