Versant Funds $30 Million Non-Recourse Factoring Facility to Furniture Manufacturer and Distributor
(May 13, 2025) Versant Funding LLC is pleased to announce it has funded a $30 Million non-recourse factoring facility to a company that manufactures and distributes furniture to major brick-and-mortar as well as on-line retailers.
The factoring company this business had relied upon for many years to meet their working capital needs had decided not to renew their facility. At the time, there was a significant balance outstanding that placed the transaction outside the funding capabilities of most factors. In addition, due to an imminent corporate restructuring, a short-term facility was required.
“Versant’s ability to fund larger transactions than most factoring companies was instrumental in structuring a facility to meet this client’s needs,” according to Chris Lehnes, Business Development Officer for Versant Funding, and originator of this financing opportunity. “Our capital base as well as our flexibility to craft a bespoke factoring solution set us apart from other funding options the company considered.”
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 $30 Million per month. All we care about is the credit quality of the A/R.
To learn more contact: Chris Lehnes | 203-664-1535 | chris@chrislehnes.com
Executive Summary:
This document summarizes the key information from a press release detailing Versant Funding LLC’s provision of a $30 million non-recourse factoring facility to a furniture manufacturer and distributor. The facility was established to replace a non-renewed facility from a previous factor, addressing a significant outstanding balance and the need for a short-term solution due to an upcoming corporate restructuring. The press release highlights Versant Funding’s capacity for larger transactions and their flexible approach to tailoring factoring solutions.
Main Themes and Key Ideas/Facts:
- Significant Factoring Facility: Versant Funding has provided a substantial $30 million non-recourse factoring facility. This indicates a significant financial commitment and suggests the furniture manufacturer has a substantial volume of accounts receivable.
- Addressing a Funding Gap: The facility was necessitated by the previous factoring company’s decision not to renew their agreement. This created a funding challenge for the furniture manufacturer.
- Large Outstanding Balance: A crucial factor in this transaction was a “significant balance outstanding” at the time the previous facility was not renewed. This balance was too large for “most factors” to handle, highlighting the scale of the furniture manufacturer’s funding needs.
- Need for a Short-Term Solution: The timing of the facility was influenced by an “imminent corporate restructuring,” requiring a short-term financing solution. This suggests the facility serves as a bridge during a period of transition for the furniture manufacturer.
- Versant Funding’s Competitive Advantages: The press release emphasizes Versant Funding’s ability to handle larger transactions and their flexibility in structuring solutions. As quoted from Chris Lehnes, “Versant’s ability to fund larger transactions than most factoring companies was instrumental in structuring a facility to meet this client’s needs.” He further adds, “Our capital base as well as our flexibility to craft a bespoke factoring solution set us apart from other funding options the company considered.”
- Non-Recourse Factoring Focus: The press release explicitly states that Versant Funding’s facilities are “custom Non-Recourse Factoring Facilities” designed to “fill a void in the market by focusing exclusively on the credit quality of a company’s accounts receivable.” This means Versant assumes the credit risk of the furniture manufacturer’s customers.
- Target Market: Versant Funding offers non-recourse factoring to companies with B2B or B2G sales ranging from $100,000 to $30 million per month. The press release reiterates their core focus: “All we care about is the credit quality of the A/R.”
- Industry of the Client: The client is identified as a company that “manufactures and distributes furniture to major brick-and-mortar as well as on-line retailers.” This provides context for the type of accounts receivable being factored.
- Key Contact: Chris Lehnes, Business Development Officer for Versant Funding, is identified as the originator of this financing opportunity and the contact person for more information. His contact details (203-664-1535 | chris@chrislehnes.com) are provided.
- Date of Press Release: The press release is dated May 13, 2025.
Important Quotes:
- “Versant Funds $30 Million Non-Recourse Factoring Facility to Furniture Manufacturer and Distributor”
- “At the time, there was a significant balance outstanding that placed the transaction outside the funding capabilities of most factors.”
- “In addition, due to an imminent corporate restructuring, a short-term facility was required.”
- “Versant’s ability to fund larger transactions than most factoring companies was instrumental in structuring a facility to meet this client’s needs,” – Chris Lehnes
- “Our capital base as well as our flexibility to craft a bespoke factoring solution set us apart from other funding options the company considered.” – Chris Lehnes
- “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.”
- “All we care about is the credit quality of the A/R.”
Conclusion:
The press release highlights Versant Funding’s successful deployment of a significant factoring facility to a furniture manufacturer facing unique funding challenges. The transaction underscores Versant’s capacity to handle large deals, their flexibility in structuring solutions, and their focus on non-recourse factoring based on the creditworthiness of accounts receivable. This appears to be a strategic move by Versant Funding to address a specific market need for companies with substantial accounts receivable that may require more tailored and larger-scale factoring solutions than typically offered.
Understanding the Versant Funding $30 Million Facility
Quiz
- What is the primary service that Versant Funding provided to the furniture manufacturer?
- What is the maximum monthly sales volume that Versant Funding considers for its non-recourse factoring solutions?
- Why did the furniture manufacturer need a new factoring facility?
- What was a key challenge in providing the factoring facility to this specific furniture manufacturer?
- Who is identified as the Business Development Officer for Versant Funding and originator of this transaction?
- What type of factoring facility did Versant Funding provide?
- What kind of customers does the furniture manufacturer and distributor sell to?
- What does Versant Funding primarily focus on when considering a factoring solution?
- According to Chris Lehnes, what sets Versant Funding apart from other funding options?
- What was the required term for the facility due to an upcoming corporate event?
Quiz Answer Key
- Versant Funding provided a non-recourse factoring facility. This service involves purchasing the company’s accounts receivable to provide immediate working capital.
- Versant Funding offers non-recourse factoring solutions to companies with B2B or B2G sales from $100,000 to $30 Million per month. This range defines the scale of businesses they typically serve.
- The furniture manufacturer’s previous factoring company decided not to renew their facility. This created a need for the business to find a new source of working capital.
- A significant balance outstanding from the previous facility and the need for a short-term facility due to an imminent corporate restructuring were key challenges. These factors required a large and flexible funding solution.
- Chris Lehnes is identified as the Business Development Officer for Versant Funding and the originator of this financing opportunity. He was the point person for structuring and facilitating this deal.
- Versant Funding provided a non-recourse factoring facility. This means Versant assumes the credit risk of the accounts receivable they purchase.
- The furniture manufacturer and distributor sells to major brick-and-mortar as well as on-line retailers. This indicates their customer base consists of established businesses.
- Versant Funding primarily focuses exclusively on the credit quality of a company’s accounts receivable. They assess the likelihood of their clients’ customers paying their invoices.
- According to Chris Lehnes, Versant Funding’s ability to fund larger transactions and their flexibility to craft a bespoke factoring solution set them apart. These capabilities allowed them to meet the furniture manufacturer’s specific needs.
- Due to an imminent corporate restructuring, a short-term facility was required. This timeframe was dictated by the furniture manufacturer’s internal business plans.
Essay Questions
- Analyze the strategic advantages for a furniture manufacturer utilizing a non-recourse factoring facility versus traditional bank financing, based on the information provided.
- Discuss how Versant Funding’s focus on the “credit quality of a company’s accounts receivable” specifically addresses the needs of businesses like the furniture manufacturer described.
- Evaluate the significance of Versant Funding’s capacity to handle a “$30 Million facility” in the context of meeting the working capital needs of larger companies.
- Explain the implications of a “short-term facility” requirement for both the furniture manufacturer and Versant Funding in this transaction.
- Compare and contrast the challenges and opportunities presented by working with “major brick-and-mortar as well as on-line retailers” from a factoring perspective, as suggested by the source.
Glossary of Key Terms
- Factoring Facility: A financial arrangement where a business sells its accounts receivable (invoices) to a third party (a factor) at a discount in exchange for immediate cash.
- Non-Recourse Factoring: A type of factoring where the factor assumes the credit risk of the factored invoices. If a customer fails to pay an invoice, the factor is responsible for the loss, not the selling business.
- Accounts Receivable (A/R): Money owed to a company by its customers for goods or services that have been delivered or provided but not yet paid for.
- Working Capital: The difference between a company’s current assets (like cash and accounts receivable) and its current liabilities (like short-term debts). It represents the funds available for a company’s day-to-day operations.
- B2B Sales: Business-to-Business sales, where a company sells its products or services to other businesses.
- B2G Sales: Business-to-Government sales, where a company sells its products or services to government entities.
- Corporate Restructuring: A significant alteration in a company’s structure, operations, or debt to improve its business or financial situation.
- Bespoke Factoring Solution: A factoring arrangement that is customized or tailored to the specific needs and circumstances of a particular client.
