Versant’s accounts receivable factoring program can be the ideal source of financing for businesses which are growing, but not ready to raise equity. Non-Dilutive Growth Financing
Program Overview $100,000 to $10 Million Non-Recourse No Audits No Financial Covenants No Long-Term Commitment Most businesses with strong customers are eligible
We like challenging deals : Start-ups Turnarounds Historic Losses Customer Concentrations Poor Personal Credit Character Issues
We focus on the quality of your client’s accounts receivable, ignoring their financial condition. This enables us to move quickly and fund qualified businesses including Manufacturers, Distributors and a wide variety of Service Businesses ( includes SaaS) in as few as 3-5 days.
Advantages of Accounts Receivable Factoring in Q4 2024
Accounts receivable factoring has long been a strategic financing tool for businesses seeking to improve cash flow and support operational growth. As we approach Q4 2024, the relevance of factoring remains strong due to economic trends, supply chain dynamics, and evolving market demands. Here are the primary advantages of factoring in the current climate:
1. Immediate Access to Cash Flow
Accounts receivable factoring allows businesses to convert outstanding invoices into cash almost immediately, bypassing the usual 30-90 day payment terms. This liquidity is particularly valuable in Q4, as companies often face increased demand, seasonal expenses, or year-end financial obligations.
2. Flexible and Accessible Financing
Unlike traditional loans, factoring does not require a lengthy approval process or stringent credit checks. Instead, funding is based on the creditworthiness of the business’s customers. This makes factoring an attractive option for small and medium-sized enterprises (SMEs) or companies with limited credit history.
3. Support for Supply Chain Stability
With supply chain challenges persisting in many industries, businesses may need to pay suppliers upfront to secure inventory. Factoring bridges the gap, ensuring companies can meet supplier demands without disrupting operations.
4. No Additional Debt
Factoring is not a loan, so businesses do not accumulate debt or face repayment schedules. This is particularly advantageous for companies aiming to maintain a clean balance sheet and optimize their creditworthiness as they plan for the year ahead.
5. Enhanced Focus on Core Operations
By outsourcing invoice management to a factoring company, businesses save time and resources on collections. This allows them to concentrate on growth-oriented activities, such as expanding customer bases, improving products, or streamlining operations.
6. Tailored to Economic Conditions
In Q4 2024, global economic uncertainty continues to shape business environments. Factoring offers an adaptable solution for companies managing fluctuating revenues, ensuring they remain agile in responding to market changes.
7. Strengthened Customer Relationships
Factoring companies often handle collections professionally, reducing tension between businesses and their customers. This preserves positive relationships and supports long-term partnerships. Factoring Activity – Deal Alerts – Q4 2024.
Why Factoring is Crucial in Q4 2024
As businesses navigate the complexities of Q4 2024, including seasonal fluctuations, economic shifts, and competitive pressures, factoring offers a reliable, scalable solution. Whether used as a short-term financing strategy or integrated into long-term financial planning, accounts receivable factoring empowers businesses to seize opportunities and close the year on a strong financial note. Factoring Activity – Deal Alerts – Q4 2024.
Versant Funds Non-Recourse Factoring Transaction to Maintenance Company with State Contract
(November 12, 2024) Versant Funding LLC is pleased to announce it has funded a non-recourse factoring transaction to a company which 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 will provide 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,“ according to Chris Lehnes, Business Development Officer for Versant Funding, and originator of this financing opportunity. “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.”
Maintenance & Repair Co.
w/State Contracts
About Versant Funding
Versant Funding’s custom Non-Recourse Factoring Facilities have been designed to fill a void in the market by focusing exclusively on the credit quality of a company’s accounts receivable. Versant Funding offers non-recourse factoring solutions to companies with B2B or B2G sales from $100,000 to $10 Million per month. All we care about is the credit quality of the A/R. To learn more contact: Chris Lehnes, 203-664-1535, clehnes@chrislehnes.com
Inflation Hits 2.6% in October, Meeting Expectations
In October, the inflation rate rose to 2.6%, aligning with analysts’ forecasts. This increase reflects a steady trend as energy costs, housing prices, and some core services continued to drive up consumer prices. The 2.6% rise marks a moderate increase from previous months, where inflation had shown signs of slowing, but remains below the peaks seen earlier in the year. Inflation increases to 2.60%.
Key Drivers Behind the Inflation Rise
The primary contributors to October’s inflation increase were:
Energy Costs: Fuel and utility costs climbed again, adding pressure to household budgets and affecting goods transportation.
Housing Costs: The ongoing rise in rental and housing prices continued to drive inflation, as demand for housing remains robust.
Core Services: Services like healthcare, insurance, and education also saw incremental price increases, contributing to the overall inflation rate.
Implications for the Economy
While the inflation rate is still within a manageable range, it remains above central banks’ typical target of 2%. This could prompt monetary policymakers to consider further adjustments to interest rates if inflation persists. For consumers, continued inflation might influence spending behaviors, especially in discretionary spending areas, as they navigate higher living costs.
Analysts are closely watching future data to see if this trend holds or if the economy will see further moderation in inflation in response to central bank policies and global economic conditions.
Our factoring offering can quickly meet the working capital needs of IT Consulting Companies which do not qualify for traditional lending sources but have good quality accounts receivable outstanding.
The U.S. economy grew at an annual rate of 2.8% in the third quarter, reflecting moderate growth fueled by consumer spending, business investment, and an easing of inflation pressures. This pace of growth, while slightly above economists’ expectations, suggests resilience amid global economic uncertainties and recent interest rate hikes by the Federal Reserve.
A major contributor to this growth was consumer spending, which remains robust despite inflation and higher borrowing costs. Spending on both goods and services increased, with durable goods like automobiles and household furnishings leading the way. Business investment also saw a boost, particularly in equipment and intellectual property, suggesting that companies are feeling optimistic about near-term prospects despite potential headwinds.
Another encouraging sign is the slowing of inflation, which is gradually moving closer to the Fed’s 2% target. Although inflationary pressures persist in areas like housing, energy costs have been more stable, providing some relief for consumers and businesses alike. This cooling of inflation aligns with the Fed’s recent signals that it may hold off on further rate hikes, which could support continued economic stability.
However, there are lingering concerns about the sustainability of this growth, particularly with high borrowing costs and potential global economic slowdowns. The combination of elevated rates, student loan repayments resuming, and geopolitical uncertainties could weigh on consumer confidence and business investment in the coming months.
Overall, the 2.8% growth rate shows resilience and adaptability within the U.S. economy. Whether this pace of expansion can be maintained into the fourth quarter remains to be seen, as several factors, including global market conditions and Fed policies, will continue to shape the economic outlook.
Our underwriting focus is solely on the quality of a company’s accounts receivable, which enables us to rapidly fund businesses which do not qualify for traditional lending.
Financing Furniture Manufacturers
Program Overview $100,000 to $10 Million Non-recourse Flexible Term Ideal for B2B or B2G
We fund challenging deals: Start-ups Losses Highly Leveraged Customer Concentrations Weak Personal Credit Character Issues
In about a week, we can advance against accounts receivable to qualified businesses which include Distributors as well as Service Providers.
The Federal Trade Commission (FTC) plays a pivotal role in protecting consumers from deceptive and unfair practices in the marketplace, including those related to subscription services. As subscriptions become an increasingly common business model across various industries, the FTC has ramped up its efforts to ensure that companies adhere to legal standards regarding transparency, billing practices, and cancellation processes.
The Rise of Subscription Services
Subscription services have proliferated in the digital age, encompassing everything from streaming media platforms and meal delivery kits to software applications and fitness memberships. These services offer consumers the convenience of automated payments, regular access to goods or services, and sometimes discounts for long-term subscriptions. However, the very features that make subscription services attractive—automatic renewals and ease of access—can also lead to consumer complaints if businesses are not transparent about the terms and conditions.
Common Issues with Subscription Services
The FTC has identified several recurring issues with subscription services:
Hidden Charges: Consumers are often unaware of recurring charges associated with a service. Companies may offer a free trial that automatically converts into a paid subscription without adequately informing customers.
Lack of Consent: Businesses sometimes fail to obtain explicit consent from consumers before charging their accounts, leading to unauthorized billing complaints.
Complicated Cancellation Processes: Many consumers report that canceling a subscription is unnecessarily difficult, requiring them to navigate complex steps or face long hold times when attempting to cancel via customer service.
Automatic Renewals without Notice: Some companies do not provide adequate notice before automatically renewing subscriptions, leaving consumers surprised by charges they didn’t expect.
The FTC’s Role
Under its mandate to protect consumers, the FTC enforces several laws and regulations that apply to subscription services. Two primary regulatory frameworks are the Restore Online Shoppers’ Confidence Act (ROSCA) and the Telemarketing Sales Rule (TSR).
Restore Online Shoppers’ Confidence Act (ROSCA): ROSCA prohibits online businesses from charging consumers for services unless they clearly and conspicuously disclose the material terms of the transaction and obtain the consumer’s express informed consent. This includes providing information about recurring charges upfront, as well as clear instructions on how to cancel the service.
Telemarketing Sales Rule (TSR): The TSR requires that businesses using telemarketing to sell subscriptions must disclose all material terms, including the fact that the customer will be charged on a recurring basis, the frequency of those charges, and how to cancel. Additionally, telemarketers must obtain express consent before processing payments.
Recent FTC Actions
The FTC has pursued legal actions against several companies that have violated these regulations. One prominent case involved ABCmouse, an online early education platform. The FTC alleged that ABCmouse made it difficult for consumers to cancel their subscriptions and failed to adequately disclose that their subscriptions would automatically renew. In 2020, ABCmouse agreed to pay $10 million to settle the charges and made significant changes to its subscription processes.
In another case, MoviePass, a subscription service for movie tickets, faced FTC scrutiny for deceptive practices. The company was accused of making it difficult for subscribers to use the service as advertised and for implementing hidden limitations on its offerings without informing customers. The FTC required MoviePass to implement a clearer, more consumer-friendly subscription model.
The “Click to Cancel” Rule
The FTC has proposed updates to its rules to further crack down on subscription-related issues, including a “Click to Cancel” provision. This rule would require businesses to offer a simple, straightforward way for consumers to cancel their subscriptions online, matching the ease with which they can sign up for them. Companies would be prohibited from making consumers endure long retention efforts or navigate complex cancellation processes.
Best Practices for Businesses
In light of the FTC’s increased focus on subscription services, companies should adopt best practices to avoid running afoul of regulatory standards. Key practices include:
Clear Disclosure: Businesses should provide upfront, easy-to-understand information about recurring charges, renewal dates, and cancellation procedures.
Simplified Cancellation: Companies should offer simple, easily accessible cancellation methods, such as online cancellation through the same platform used to subscribe.
Renewal Reminders: Sending reminder notices before automatic renewals is a good way to ensure that consumers are aware of upcoming charges.
Consent and Documentation: Obtaining clear, explicit consent from consumers before charging them and keeping records of these consents are essential for compliance.
As subscription models continue to grow in popularity, the FTC’s oversight has become increasingly crucial in safeguarding consumer rights. By enforcing transparency in billing, ensuring that consumers have the ability to cancel easily, and preventing deceptive practices, the FTC plays a critical role in maintaining trust in the marketplace. Both businesses and consumers must stay informed about their rights and obligations in the evolving landscape of subscription services
