Versant Funding funded a $5 million non-recourse factoring facility to a company that manufactures products for a large customer base, including a large American municipality.
After a transition to private equity ownership and management restructuring, the company required an infusion of working capital to meet an urgent cash need. While the company has hundreds of customers with AR outstanding, the most efficient way to fund was to factor only the AR of its largest customer, but most factoring companies would not permit 100% customer concentration.
“Versant focuses solely on the credit quality of our clients’ customers,” Chris Lehnes, business development officer for Versant Funding, and originator of this financing opportunity, said. “Since the company’s largest account is a large U.S. city, we were willing to allow 100% customer concentration and meet the client’s short-term funding need.”
