Versant Funding funded a non-recourse factoring transaction to a company that provides maintenance and repair services for state-owned properties.
This business has recently won a contract with a state entity, which will drastically increase revenues, but also create the need for additional working capital to cover payroll and other overhead expenses. Versant was able to quickly put a factoring facility in place to advance cash against invoices due from the state, which is aimed at providing the company with the liquidity needed to fulfill their state contract obligations.
“Versant’s factoring program was a perfect fit for this family-owned business in need of expansion 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, we were able to provide a facility with no cap which will grow automatically as the A/R balances with the state grow.”
