Versant Funding has funded a $1 million non-recourse factoring facility for a well-established business that provides services to major hospital systems.
This private equity-owned company had an imminent, short-term cash need. Its management realized that factoring a subset of their accounts receivable due from financially strong hospitals could be a source of immediate liquidity without requiring their sponsor to invest more capital into the operation.
“Versant can fund faster than most traditional financing sources because we focus solely on the credit quality of our clients’ customers and do not perform a full underwriting or audit of the business” according to Chris Lehnes, business development officer for Versant Funding, and originator of this financing opportunity. “Since this company’s customers include major health networks, we quickly approved the transaction and were able to meet the company’s funding deadline.”
