According to a report by Bloomberg, CIT Group has decided to stop financing loans to suppliers waiting to be paid by Sears.

The third annual Retail Finance Outlook released Tuesday by CIT Group found that 80% of retail executives expect their holiday sales to increase or remain the same as last year.

A majority of retail executives expect business to improve in the coming months, but they remain cautious when it comes to increasing staff levels, building inventory, and assessing the availability of credit — especially for their customers, according to a research study by CIT Group, a leading provider of financing to small businesses and middle market companies.

Hayward, Calif.-based Mervyn’s may be forced to file for Chapter 11 bankruptcy protection, perhaps as...