Factoring can meet the cash needs of seafood processing companies looking to expand. Contact Chris at Versant Funding to learn if your seafood client is a factoring fit
Chris Lehnes | Factoring Specialist | 203-664-1535 | chris@chrislehnes.com
Accounts Receivable Factoring can quickly meet the working capital needs of manufacturers. 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
| Factoring Program Overview $100,000 to $30 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 also include Distributors as well as a variety of Service Providers. Contact me today to learn if your client is a factoring fit. Chris Lehnes 203-664-1535 chris@chrislehnes.com Connect on LinkedIn |
Welcome to Business World Review. What you need to know. Today is Tuesday, September 2nd 2025.
Several non-Big Tech companies have been in the news over the past 24 hours. Here’s a summary of recent stories about a few of them:
Southwest Airlines: Southwest is the first airline to install new, FAA-mandated secondary flight deck barriers on its Boeing 737 MAX 8 jets. These barriers are designed to prevent cockpit intrusions and are a new safety feature for the airline.
Spirit Airlines : The low-cost carrier, Spirit Airlines, has filed for bankruptcy for the second time in under a year, continuing its financial struggles.
Nestlé : The Swiss food and beverage giant, Nestlé, dismissed its CEO after an investigation found he was in an inappropriate romantic relationship with a direct subordinate, which violated the company’s code of conduct.
Cracker Barrel : The restaurant and gift store chain faced customer backlash, particularly in its hometown, over a recent logo rebrand. Following the negative feedback, the company reversed its decision. This situation has also drawn attention to the company’s financial struggles.
Intel: The U.S. government will take a 10% equity stake in the semiconductor company, Intel, as part of a move by the Trump administration.
Anker Innovations is recalling more than 1.1 million power banks. The recall was prompted by reports of the lithium-ion batteries inside the products overheating, which poses a burn risk to consumers.
General Motors: A news report mentions that the company is facing a decline in factory output in China for the fifth consecutive month, as trade talks with the US continue.
TVS: The company aims to boost its market share in the electric two-wheeler segment with its new “Orbiter” model.
CoreWeave, a cloud computing and AI infrastructure company, has made a significant acquisition. It has purchased Core Scientific in a deal valued at $9 billion.
Factoring can meet the working capital needs of businesses impacted by rising tariffs. Contact Chris Lehnes to learn if your business is a factoring fit.
Factoring Proposal Issued – $3 Million | Non-Recourse | Manufacturer/Distributor of Soft Goods
Tariffs have disrupted the supply chain of this business which sells to major retailers and quick cash is needed to meet demand of peak fall season.
We can fund in 1 week!
Contact me to learn if your client is a factoring fit.
This podcast episode, hosted by Bob Shultz, publisher and co-founder of TCLM, and featuring Factoring Specialist, Chris Lehnes provides an in-depth exploration of factoring as a financing solution for businesses seeking improved liquidity.
Factoring is explained as the sale of a company’s accounts receivable to a third-party factor, which enables immediate cash flow without incurring debt. Lehnes outlines how the process works, from invoice verification to advancing 75 to 90 percent of its value and later releasing the balance upon customer payment, while also discussing the operational benefits, such as the factor handling collections. The conversation covers critical distinctions between recourse and non-recourse factoring, cost structures, and flexibility in factoring arrangements, including selective factoring by customer or invoice. The fees, typically 1.5 to 3 percent per month, are examined alongside aspects that influence pricing, such as credit risk, invoice volume, and payment timelines.
The discussion also offers practical guidance for businesses considering factoring, highlighting its applicability primarily for B2B and B2G companies with strong customers and urgent funding needs not being met by banks. Lehnnes addresses common concerns about customer perception, explaining that large enterprise clients are accustomed to factoring arrangements, and he emphasizes good receivables management practices to improve eligibility. The episode concludes with insights into Versant Funding’s unique position in the market, emphasizing its true non-recourse model, lack of reliance on traditional borrower qualifications, flexibility in factoring older receivables, and willingness to work with high customer concentration. This positions factoring not only as a cash flow solution but also as a strategic tool for growth, bridging financing gaps, and providing operational stability
Contact Factoring Specialist, Chris Lehnes
Factoring is a valuable financial tool for businesses facing cash flow issues due to delayed customer payments. The core concept involves selling unpaid invoices (accounts receivable) to a third-party “factor” in exchange for immediate cash. The discussion highlights “non-recourse factoring,” where the factor assumes the risk of customer non-payment, and explores Versant’s unique approach, benefits, real-world applications, cost structure, and ideal use cases.
Factoring, particularly non-recourse factoring, offers a powerful and flexible financial solution for businesses, especially those struggling with cash flow, seeking quick capital, or facing challenges that preclude traditional loans. Companies like Versant provide rapid funding, personalized service, and transparency, taking on significant risk in the process. While it’s important to consider the costs and potential loss of collection control, the ability to unlock potential and accelerate growth by transforming receivables into immediate cash makes factoring a compelling option for many businesses across various industries.
Contact Factoring Specialist, Chris Lehnes
Answer the following questions in 2-3 sentences each:
Within the last 24 hours, news developments concerning the US economy and businesses have been largely overshadowed by the ongoing impact of tariffs and a focus on corporate earnings reports.
Factoring can provide the working capital needed to survive in an era of increasing tariffs.
Contact me today to learn if your client is a factoring fit.
Contact Factoring Specialist, Chris Lehnes
In the complex and often volatile world of international trade, tariffs emerge as a powerful, yet double-edged, sword. These government-imposed taxes on imported goods, while ostensibly designed to protect domestic industries, often send ripple effects far beyond national borders, especially into the delicate financial ecosystems of small businesses. For these agile, yet often financially lean, enterprises, tariffs can significantly strain their working capital position – the lifeblood that fuels daily operations, manages short-term obligations, and seizes growth opportunities. Understanding this impact is crucial for small business owners seeking to navigate an unpredictable global economy.
Working capital, simply put, is the difference between a business’s current assets (like cash, accounts receivable, and inventory) and its current liabilities (such as accounts payable, short-term debt, and accrued expenses). A healthy working capital position indicates liquidity and operational flexibility. Conversely, a depleted or negative working capital can signal financial distress, limiting a business’s ability to pay suppliers, meet payroll, or invest in expansion. Tariffs, by their very nature, directly attack this critical financial metric in several profound ways.
The most immediate and discernible impact of tariffs is the increased cost of goods and materials. Small businesses that rely on imported raw materials, components, or finished products for their operations suddenly face higher acquisition costs. For instance, a small furniture maker importing specialized wood from a country subject to a 25% tariff will see the cost of that wood jump by a quarter. This additional expense is a direct drain on cash flow, as businesses must find the money to pay these tariff fees to clear customs before their goods are even released. For many small businesses operating on thin margins, this unexpected and substantial outlay can create an immediate cash crunch, diverting funds that would otherwise be used for payroll, marketing, or other operational necessities.
Beyond the direct cost, tariffs trigger a cascade of challenges that further erode working capital. Supply chain disruptions are a prevalent consequence. Established trade relationships can be upended as suppliers in tariff-affected regions become less competitive or, in some cases, unable to continue supplying at viable prices. This forces small businesses to scramble for alternative sources, which often come with higher prices, longer lead times, or different quality standards. Delayed deliveries due to customs complications or supplier adjustments mean slower inventory turnover and a longer cash conversion cycle. If products sit in transit or customs longer, the capital tied up in that inventory increases, exacerbating working capital pressure. Moreover, product shortages can compel emergency purchases from new, more expensive suppliers, further straining cash reserves.
The ripple effect extends to inventory management. To mitigate the risk of supply chain disruptions and future price hikes, some small businesses may consider increasing their inventory levels as a buffer. While seemingly a protective measure, this strategy ties up more capital in goods that haven’t yet been sold, potentially leading to excess inventory and increasing storage costs. Conversely, if tariffs make certain products prohibitively expensive, businesses might be left with unsold, high-cost inventory, leading to write-downs and further losses.
Furthermore, tariffs introduce a significant degree of uncertainty and planning challenges. The unpredictable nature of trade policies, with tariffs being imposed, adjusted, or removed with little notice, makes long-term financial planning a formidable task for small businesses. This volatility discourages investment in new equipment, technology, or hiring, as businesses become hesitant to commit capital in an unstable environment. Lenders, too, may view tariff-impacted businesses as higher risk, potentially leading to reduced credit lines or a reluctance to extend new financing, further constricting access to crucial working capital.
Historical examples highlight these impacts. The U.S. steel tariffs of 2002, while intended to protect domestic steel producers, led to higher input costs for downstream industries, such as construction and manufacturing, affecting their profitability and working capital. Similarly, the trade disputes of recent years, particularly those involving tariffs on Chinese goods, have seen anecdotal evidence of small businesses in sectors like sexual wellness and home goods struggling with increased costs, supply chain recalibrations, and the difficult decision of raising consumer prices or absorbing losses. Companies like Dame Products and Bambu Home, as seen in recent case studies, have directly experienced the strains on cash flow and the necessity of reevaluating their financial and pricing strategies.
While the challenges posed by tariffs are substantial, small businesses are not entirely without recourse. Proactive strategies can help mitigate their impact on working capital:
In conclusion, tariffs represent a significant exogenous shock to the working capital position of small businesses. They directly increase costs, disrupt supply chains, complicate inventory management, and intensify competitive pressures, all of which strain a business’s liquidity and operational capacity. However, by adopting proactive strategies such as diversifying suppliers, optimizing cash flow, and seeking appropriate financial support, small businesses can enhance their resilience and navigate the turbulent waters of global trade, protecting their vital working capital and ensuring their continued viability and growth.
Accounts Receivable Factoring can quickly meet the working capital needs of a manufacturer.
Versant’s 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.
Factoring Program Overview
We fund challenging deals:
In about a week, we can advance against accounts receivable to qualified businesses which include Distributors as well as Service Providers.
Contact me today to learn how your client would benefit.
Accounts receivable factoring is a financial strategy that allows businesses to convert their outstanding invoices into immediate cash. This comprehensive summary explores the significant benefits that accounts receivable factoring offers, particularly for small and medium-sized enterprises (SMEs) and businesses experiencing rapid growth or facing cash flow challenges.
At its core, accounts receivable factoring involves a business (the seller) selling its invoices to a third-party financial institution (the factor) at a discount. In return, the business receives a substantial portion of the invoice value upfront, typically between 70% and 95%. The remaining balance, minus the factor’s fee, is paid to the business once the customer settles the invoice with the factor. This mechanism effectively transforms a future payment into current working capital, bridging the gap between providing goods or services and receiving payment.
One of the most compelling benefits of accounts receivable factoring is its ability to improve cash flow instantly. Many businesses, especially those operating on credit terms (e.g., Net 30, Net 60), often face periods of tight cash flow due to delayed payments from customers. Factoring eliminates this waiting period, providing immediate access to funds that can be used to cover operational expenses, purchase inventory, meet payroll, or seize new opportunities. This rapid liquidity is a game-changer for businesses that cannot afford to wait weeks or months for their invoices to be paid.
Beyond immediate cash, factoring offers enhanced working capital. Unlike traditional loans, factoring is not a debt. It’s the sale of an asset (your invoices). This means it doesn’t add liabilities to your balance sheet, making your financial position appear stronger to potential lenders or investors. The funds obtained through factoring can be continuously reinvested into the business, supporting ongoing growth and stability without incurring new debt.
Another significant advantage is access to funding regardless of credit history. Traditional bank loans often require a strong credit score, substantial collateral, and a lengthy application process. Accounts receivable factoring, however, primarily focuses on the creditworthiness of your customers. If your customers have a good payment history, your business is likely to qualify for factoring, even if your own credit history is less than perfect or if you’re a new business with limited financial history. This makes it an accessible funding option for a wider range of businesses.
Factoring also provides protection against slow-paying customers, particularly with “non-recourse” factoring. In non-recourse factoring, the factor assumes the credit risk associated with the invoice. If the customer fails to pay due to bankruptcy or insolvency, the factor bears the loss, not your business. This offers a valuable layer of financial security, allowing businesses to extend credit terms with greater confidence. While non-recourse factoring typically comes with a slightly higher fee, the peace of mind it offers can be invaluable. Even in “recourse” factoring, where your business remains responsible for unpaid invoices, the immediate cash flow benefit is still substantial.
Furthermore, factoring can reduce administrative burden and collection costs. When you factor your invoices, the factor often takes over the responsibility of credit checking customers and collecting payments. This frees up your internal resources, allowing your team to focus on core business activities like sales, production, and customer service, rather than spending time on collections. For businesses without dedicated collections departments, this can be a significant cost and time saver.
For businesses experiencing rapid growth, accounts receivable factoring provides the necessary capital to scale operations. As sales increase, so does the need for working capital to fund production, acquire raw materials, and manage increased overheads. Factoring ensures that cash flow keeps pace with growth, preventing a cash crunch that could otherwise hinder expansion. It provides a flexible funding solution that grows with your sales volume – the more invoices you generate, the more funding you can access.
Lastly, factoring can offer improved financial predictability. By converting fluctuating customer payment cycles into a consistent influx of cash, businesses can better forecast their finances and plan for future expenditures. This stability allows for more strategic decision-making and reduces the stress associated with unpredictable cash flow.
While accounts receivable factoring offers numerous benefits, businesses should also consider the costs (the factoring fee), the relationship with the factor, and how the process might impact customer relations (as customers will be dealing with the factor for payments). However, for many businesses seeking immediate liquidity, flexible funding, and reduced financial risk, accounts receivable factoring stands out as a powerful and effective financial tool. It empowers businesses to unlock the value of their outstanding invoices, turning potential cash flow challenges into opportunities for growth and stability.