Textron Financial 424B2 Prospectus for primary offering

Pricing Supplement dated September 26, 2006

(To Prospectus dated September 26, 2003 and

Prospectus Supplement dated September 26, 2003)

Rule 424(b)(2)

File No. 333-108464

Cusip No.88319QK51

Textron Financial Corporation

Medium-Term Notes, Series E

Due Nine Months or More from Date of Issue

Textron Financial Canada Funding Corporation

Medium-Term Notes, Series E-CAD

Due Nine Months or More from Date of Issue

Fully and Unconditionally Guaranteed

Textron Financial Corporation

Floating Rate

Issuer: Textron Financial Corporation


Principal Amount: $200,000,000			Initial Interest Rate: 5.46688%

Agent's Discount or Commission: $278,000			Original Issue Date: September 29, 2006

Net Proceeds to Issuer: $199,722,000			Stated Maturity Date: September 29, 2009


Interest Category
x Regular Floating Rate Note
o Floating Rate/Fixed Rate Note Fixed Rate Commencement Date: Fixed Interest Rate: %
o Inverse Floating Rate Note o Fixed Interest Rate: %

Interest Rate Basis or Bases:
o CD Rate	o Federal Funds Rate			o Prime Rate
o CMT Rate	x LIBOR			o Other (see attached)
o Commercial Paper Rate	o Treasury Rate

If LIBOR:
o LIBOR Reuters Page:
x LIBOR Telerate Page: 3750
LIBOR Currency: US$

If CMT Rate:
CMT Telerate Page: o Telerate Page 7051 o Telerate Page 7052 o Weekly Average o Monthly Average

Spread (+/-): +10 bps		Maximum Interest Rate: %

Spread Multiplier: N/A		Minimum Interest Rate: %

Index Maturity: 3 month

Initial Interest Reset Date: December 29, 2006

Interest Reset Dates: Quarterly, on the 29^th day of March, June, September and December

Interest Payment Dates: Quarterly, on the 29^th day of March, June, September and December

Interest Determination Dates: Two London business days prior to each Interest Reset Date

Regular Record Date(s):

Calculation Agent (if other than SunTrust Bank):

Day Count Convention:

x Actual/360 for the period from September 29, 2006 to September 29, 2009

o Actual/Actual for the period from _______ to _______

o 30/360 for the period from _______ to _______

Redemption:

x The Notes cannot be redeemed prior to the Stated Maturity Date.

o The Notes can be redeemed prior to Stated Maturity Date.

Initial Redemption Date:

Initial Redemption Percentage: ____%

Annual Redemption Percentage Reduction: ____% until Redemption Percentage is 100% of the Principal Amount.

Optional Repayment:

x The Notes cannot be repaid prior to the Stated Maturity Date.

o The Notes can be repaid prior to the Stated Maturity Date at the option of the holder of the Notes.

Optional Repayment Date(s):

Optional Repayment Price(s):

Specified Currency (if other than U.S. dollars):

Authorized Denomination (if other than $1,000 and integral multiples thereof):

Exchange Rate Agent:

Original Issue Discount: o

Yes

Issue Price:

Total Amount of OID:

Yield to Maturity:

Initial Accrual Period OID:

Agent:
x Merrill Lynch, Pierce, Fenner & Smith Incorporated o Banc of America Securities LLC o Barclays Capital Inc. o Citigroup Global Markets Inc. o Credit Suisse First Boston LLC o Deutsche Bank Securities Inc.	o HSBC Securities (USA) Inc. o J.P. Morgan Securities Inc. o Tokyo-Mitsubishi International plc o UBS Securities LLC o Wachovia Securities Inc. x Other: _Morgan Stanley & Co. Incorporated_

Agent acting in the capacity as indicated below:
o Agent x Principal

If as Principal:
o The Notes are being offered at varying prices related to prevailing market prices at the time of resale.
x The Notes are being offered at a fixed initial public offering price of 100% of the Principal Amount.
Morgan Stanley is responsible for selling $125,000,000 Notes
Merrill Lynch is responsible for selling $75,000,000 Notes

If as Agent:

The Notes are being offered at a fixed initial public offering price of ____________% of the Principal Amount.

Other provisions:

Terms are not completed for certain items above because such items are not applicable.

Textron Financial Inactive 424B2Prospectus for primary offering