Versant Funding funded a $1.8 million non-recourse factoring transaction to a company that administers group homes for adolescents who are victims of neglect and abuse. This newly formed business has relationships with state and county organizations to house children in need. These entities tend to pay their invoices slowly, putting a financial strain on the business. Versant was able to quickly put a factoring facility in place to advance cash against those invoices, which will provide the company with the liquidity needed to expand into additional counties.
“Versant’s offering was an excellent match for this newly formed business in need of growth financing,” Chris Lehnes, business development officer for Versant Funding, and originator of this financing opportunity, said. “Because our approach to factoring focuses solely on the quality of accounts receivable and does not require an underwriting of our client, we were able to fund this business that would not meet the credit standards of most traditional lenders.”
