Versant Funding funded a non-recourse factoring facility to a distributor of electric bicycles and scooters, which sells primarily through e-commerce channels.
The holiday shopping season makes up a substantial portion of the annual revenue for the company, and without an immediate source of additional working capital, this revenue would have been lost.
While the business secured an Economic Injury Disaster Loan from the SBA over the summer, those proceeds provided only a few months of liquidity and not enough to fund it through the end of the year.
“Versant’s offering was an excellent match for this seasonal business,“ Chris Lehnes, business development officer for Versant Funding and originator of this financing opportunity, said. “We are strictly focused on the strength of our clients’ customers and set no cap on our facility size. Since this business has a strong customer base, as its revenue and accounts receivable grow, so will its access to cash from our factoring facility.”
Versant is a provider of non-recourse factoring facilities.
