Start-ups – New Podcast: Factoring – A Funding Source

New Podcast Episode: Factoring – A Funding Source for Start-ups.

New Podcast Episode: Factoring - A Funding Source for Start-ups.

Questions about what you’ve heard? Contact Chris Lehnes | 203-664-1535 | clehnes@chrislehnes.com | www.chrislehnes.com

https://www.youtube.com/watch?v=pApeFoi8m_M

Key Concepts Review Factoring: A financial transaction where a business sells its accounts receivable (invoices) to a third party (a factor) at a discount to receive immediate cash. Accounts Receivable: Money owed to a company by its customers for goods or services provided on credit. Working Capital: The capital available to a company for day-to-day operations. Calculated as current assets minus current liabilities. Start-ups: A new business venture, typically characterized by high uncertainty and rapid growth potential. Invoice: A commercial document that itemizes and records a transaction between a buyer and a seller. Glossary of Key Terms Accounts Receivable: Money owed to a company by its customers for goods or services provided on credit. Represented by invoices. Factoring: A financial transaction where a business sells its accounts receivable (invoices) to a third party (a factor) at a discount to receive immediate cash. The factor takes on the responsibility of collecting payment from the customer. Invoice: A commercial document that itemizes and records a transaction between a buyer and a seller. It specifies the goods or services provided, the quantity, the agreed-upon price, and payment terms. Startup: A new business venture, typically characterized by high uncertainty and rapid growth potential. Often faces challenges in securing traditional financing due to a limited track record. Working Capital: The capital available to a company for day-to-day operations. Calculated as current assets minus current liabilities. Adequate working capital is essential for a business to meet its short-term obligations and fund its growth. Business Development Officer: A professional who focuses on generating new leads, nurturing relationships with prospective clients, and promoting business growth. Startups are often overlooked for traditional financing: Lehnes directly addresses the common misconception that startups are not suitable candidates for factoring. He states, “a lot of people don’t consider [startups] as a potential candidate for factoring.” This highlights a gap in financing options for new businesses that might not qualify for conventional loans. Factoring provides immediate working capital: The core benefit of factoring is the immediate cash flow it provides. Lehnes explains, “what our client gets is immediate access to the working capital to build this client relationship, hopefully bring on new clients and become a much stronger business.” This allows startups to cover expenses like payroll and supplier costs, supporting operations and growth. Example Scenario: Seafood Startup: Lehnes presents a specific example of a seafood startup that wants to fulfill a large order from a grocery store chain with 30-day payment terms. Factoring allows the startup to accept the order by bridging the cash flow gap between delivery and payment. “Our client makes a delivery to this customer, invoices, we factor the invoice, purchase it, advance them 75% of the cash immediately, and they can use that cash to pay their employees, pay their suppliers, and keep the wheels in motion.” Focus on Customer Creditworthiness: Versant Funding prioritizes the financial stability of the start-up’s customers over the startup’s own history. As Lehnes emphasizes, “we will do a deal for a company that’s brand new… for us, what’s important is that that one customer be strong.” This is a crucial distinction, as it opens up financing opportunities for startups with strong customer relationships. Cost of Factoring: Lehnes mentions a typical factoring fee of approximately 2.5% per month. He states, “…taking out a fee which in a case like this is usually about 2 and a half % per month.” While this is a cost to the startup, it is presented as worthwhile for the access to immediate capital and growth opportunities. Important Facts/Details: Advance Rate: Versant Funding typically advances 75% of the invoice amount upfront. Fee Structure: The factoring fee is around 2.5% per month. Versant Funding’s Target Client: Start-ups with creditworthy customers, even those with limited operating history. Quotes for Emphasis: “Start-ups are welcome.” “what our client gets is immediate access to the working capital” “for us what’s important is that that one customer be strong” factoring as a valuable financial tool for startups that are seeking to grow but may be excluded from traditional lending options. By focusing on the creditworthiness of the startup’s customers, Versant Funding can provide much-needed working capital, enabling startups to fulfill large orders and expand their businesses. The 2.5% monthly fee is framed as a worthwhile investment for the benefits of immediate cash flow and accelerated growth.

Contact Factoring Specialist, Chris Lehnes – 203-664-1535 | clehnes@chrislehnes.com

Funding for Working Capital Shortfalls

Funding for Working Capital Shortfalls

Our accounts receivable factoring program can help businesses meet payroll or other essential obligations in as quick as a week.

Funding for Working Capital Shortfalls
Funding Working Capital Shortfalls

Factoring Program Overview

  • $100,000 to $10 Million
  • Competitive Advance Rates
  • Non-Recourse
  • No Audits
  • No Financial Covenants
  • Most businesses with strong customers eligible

We specialize in difficult deals:

  • Start-ups
  • Weak Balance Sheets
  • 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 in as few as 3-5 days. Contact me today to learn if your client is a fit.
 
Chris Lehnes 203-664-1535 clehnes@chrislehnes.com

Press Release: Maintenance Company with State Contract

Press Release: Versant Funds Non-Recourse Factoring Transaction to Maintenance Company with State Contract

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.”

Press Release: Maintenance & Repair Co. w/State Contracts
Maintenance & Repair Co. w/State Contracts

About Versant Funding Press Release

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

Spot Factoring Proposal Issued – $1,300,000 – Single Invoice from Payroll Company

 Spot Factoring Proposal Issued – $1,300,000 | Single Invoice Due from Payroll Company

Spot Factoring Proposal Issued
Spot Factoring Proposal Issued

This consulting firm has one large invoice due in 30 days, but needs cash now to meet obligations.

Connect with Factoring Specialist, Chris Lehnes

Learn more about accounts receivable factoring

Invoice Factoring – Quick Summary – Essential Facts

Factoring: Fast Cash for Business Growth
Factoring: Fast Cash for Business Growth

Invoice Factoring – Quick Summary – Essential Facts – A Primer

Get your qualified Clients Funded in About a Week.

$100k to $10 Million

Non Recourse

No Financials Required

No Audits

Great for B2B and B2G Businesses

Contact me today to learn if your client is a fit.

Chris Lehnes | 203-664-1535 | clehnes@chrislehnes.com

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