NEW YORK — Versant Funding LLC has funded a $3 million non-recourse factoring facility for a housewares design and distribution company facing liquidity challenges under its previous lender, the firm announced Tuesday.
The borrower, which supplies products to major grocery and retail outlets, had been unable to fulfill new orders due to funding limits imposed by its current factoring provider. Versant’s deal delivers an advance against all outstanding accounts receivable, providing the cash needed to meet product demand and streamline operations.
In addition to easing working capital constraints, the facility also consolidates multiple loans the company had previously taken on.
“Versant’s factoring program was a great match for this business that was continuing its recovery from pandemic-era disruptions,” said Chris Lehnes, business development officer at Versant and originator of the transaction. “Because our approach to factoring focuses solely on the quality of accounts receivable without imposing customer concentration limits, we were able to provide more funding than their existing factor, allowing the business to better serve its customers.”
Versant Funding specializes in non-recourse factoring solutions for companies with B2B or B2G sales ranging from $100,000 to $10 million per month. The firm’s model is based exclusively on the credit quality of a company’s receivables, rather than its balance sheet or customer mix.