Press Release: (March 26, 2026) Versant Funding LLC is pleased to announce that it has funded a $1.4 Million non-recourse factoring facility to a manufacturer of equipment used by global auto companies.
While our newest client has successfully secured contracts with some of the world’s largest manufacturers, slow-paying accounts receivable are putting pressure on the company’s cash flow and preventing them from taking on new business.
“In evaluating a funding opportunity, Versant focuses exclusively on the quality of our client’s accounts receivable” according to Chris Lehnes, Business Development Officer for Versant Funding, and originator of this transaction. “Since this company’s customers are among the strongest on the planet, our facility will essentially have no cap and will grow automatically as the company’s AR balances increase, providing our client the cash needed to expand.”
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
For many distributors, the word “factoring” carries some outdated baggage. If you’re hesitant to pull the trigger, it’s likely because of one of these common misconceptions. Let’s separate the noise from the facts:
The Myth
The Reality
“Factoring is a sign of financial trouble.”
Factoring is a sign of growth. Most companies use factoring because they are growing too fast for their cash flow to keep up. It’s a strategic choice to fuel expansion, not a last-ditch effort to stay afloat.
“My customers will think I’m going under.”
It’s a standard B2B practice. Major retailers and manufacturers deal with factors every day. In many industries, like apparel or electronics distribution, it’s actually the “gold standard” for managing receivables.
“It’s way too expensive.”
Look at the ROI. While the fee (1–3%) is higher than a bank loan, the “cost of waiting” 60 days for a check often means missing out on new inventory or early-pay discounts from your own suppliers that could actually save you more than the factoring fee.
“I’ll lose control of my customer relationships.”
You stay in the driver’s seat. Modern factoring companies act as a professional extension of your back office. They want your customers to stay happy so they keep buying (and paying). You still manage the sales and service; they just handle the math.
“It’s just like a high-interest loan.”
It’s not a loan at all. Because you are selling an asset (your invoice), you aren’t taking on debt. There are no monthly principal or interest payments to worry about—the “payment” comes from your customer, not your bank account.
The “Silent” Benefit: Professional Credit Checks
One “Reality” that distributors often overlook is that a factor acts as a free credit department. Before you ship $50,000 worth of goods to a new client, you can ask your factor to check their credit. If the factor won’t buy the invoice, that’s a massive red flag that you probably shouldn’t be selling to that customer on terms in the first place.
What you should know in selecting a factoring Partner
Choosing a factoring company is like choosing a long-term business partner. The right one will act as your back-office credit department; the wrong one can be an expensive administrative nightmare. Use this checklist to vet potential partners:
1. The Core Logistics
[ ] Industry Expertise: Do they have experience with the specific nuances of distribution (e.g., handling chargebacks, bill-backs, or progressive shipping)?
[ ] Advance Rate: Will they advance at least 80–90% of the invoice value?
[ ] Funding Speed: Can they provide “Same Day” or “Next Day” funding once an invoice is verified?
[ ] Funding Source: Are they a Direct Lender (bank-backed) or an independent factor? (Direct lenders often have lower rates and more stability).
2. Transparency & Fees
[ ] The “All-In” Rate: Ask for a breakdown of all fees. Look out for hidden “junk fees” like application fees, wire fees, or credit check fees.
[ ] Recourse vs. Non-Recourse: * Recourse: You must buy back the invoice if your customer doesn’t pay. (Lower fees).
Non-Recourse: The factor takes the credit risk if the customer goes bankrupt. (Higher fees).
[ ] Volume Requirements: Are there “Monthly Minimums”? If you don’t hit a certain volume, will you be penalized?
3. The “Relationship” Factor
[ ] Dedicated Account Manager: Will you have a single point of contact who knows your business, or a generic 1-800 help desk?
[ ] Customer Interaction Style: How do they contact your customers for verification? You want a partner who is professional and polite, as they represent your brand.
[ ] Technology Integration: Do they sync with your accounting software (QuickBooks, NetSuite, etc.) for easy invoice uploading?
4. Contract Flexibility
[ ] Contract Length: Avoid multi-year lock-ins. Look for month-to-month or one-year terms with clear exit clauses.
[ ] Termination Notice: How much notice is required to leave? (Usually 30–90 days).
[ ] Personal Guarantee: Is a personal guarantee required? (Standard for many small business factors, but worth clarifying).
(March 19, 2026) Versant Funding LLC is pleased to announce that it has funded a $5 Million non-recourse factoring facility to a 90+ year-old company that provides services to major consumer brands.
After acquisition by a Private Equity Group, our latest client’s new management team implemented a turnaround plan which required additional cash. While the company was in the process of applying for an asset-based line of credit, time was of the essence and a funding date for the ABL facility was uncertain.
“Versant can fund faster than most traditional financing sources because we focus solely on the credit quality of our clients’ customers and do not perform a full underwriting or audit of the business” according to Chris Lehnes, Business Development Officer for Versant Funding, and originator of this financing opportunity. “Since this company’s customers include some of the world’s strongest consumer brands, we quickly approved the transaction and were ready to fund in about a week.”
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
The first few warm days of spring mean flowers, baseball, and for many small business owners in March 2026, the annual financial checkup. If you’ve looked at your numbers and realized you need a cash injection for new equipment, that third location, or an aggressive inventory build, you know the drill: It’s time to find the capital. While large national banks are the obvious choice, they are often difficult, impersonal, and slow. By comparison, credit unions have become the unexpected superstars of commercial lending, especially for small and medium-sized enterprises (SMEs).
If you are hunting for a business loan this month, you need to understand why credit unions are dominating and how to find the one that will actually make that critical “yes” happen for your business.
The Not-So-Secret Advantage of the Member-Owner
To understand why credit unions often beat banks on business lending, you have to look at their structure.
Banks answer to shareholders who demand profits and high returns on equity. Every decision, including who gets a loan, is filtered through the lens of maximizing shareholder value.
Credit unions, however, are not-for-profit cooperatives. They do not have public stock. Their members (you, me, and other account holders) are the owners.
This single difference ripples through every interaction. For business lending in 2026, it means:
1. Rates and Fees That Just Make More Sense: Instead of returning profit to Wall Street, credit unions reinvest earnings back into the institution and their members. This often manifests as lower interest rates on commercial loans and significantly lower loan-origination and maintenance fees. In 2026, when inflation has been a recent headache, a difference of 0.5% on a large loan term can mean thousands of dollars saved.
2. Hyper-Local Expertise: When you sit down with a commercial lender at a bank, their rules, algorithms, and models might be set at headquarters 2,000 miles away. They may not understand the specific micro-market in Newtown, Connecticut, where you are operating. But your local credit union officer lives here. They understand why opening a second pizza parlor on the new development is a smart bet, not a risky venture. They lend based on local market knowledge.
3. Relationships Over Risk-Scores: A bank will look at your credit score and financial statements, enter them into a model, and receive a automated “Approve” or “Deny.” Credit unions, especially smaller, focused ones, prioritize relationships. They are more likely to have a real human look at your complete business plan, understand your unique vision, and listen to the story behind your application, not just the numbers on the page.
The “New Reality” of SBA Lending
One of the most important developments in 2026 is that the Small Business Administration (SBA) has made it significantly easier and faster for credit unions to facilitate SBA 7(a) and 504 loans.
For many small businesses, these government-backed loans are the Holy Grail: long terms, lower interest rates, and lower down-payment requirements. Previously, massive banks dominated this space because the paperwork was crushing.
However, the “Streamline and Connect Act” of 2024 (as we projected) drastically simplified the SBA application process and created digital interfaces specifically designed for smaller community financial institutions.
This means that in March 2026, the local credit union you never expected to handle an SBA application is now a Preferred Lender, capable of getting your government-backed loan approved in weeks, not months.
How to Evaluate a Credit Union in March 2026
You can’t just walk into the nearest credit union and expect a perfect loan offer. To find the “best” one for your business right now, you must be strategic:
Step 1: Membership Criteria (The Gateway)
Credit unions can’t just lend to anyone. They operate under a specific “field of membership” (FOM). While some have broadened their charters, many are still strictly limited. To find the “best,” you must find the one you can actually join.
Geographic FOM: Are you eligible because your business is located in Newtown, CT, or the surrounding county? This is the most common path.
Associational or Professional FOM: Are you a veteran? An educator? A first responder? A member of a specific local church or union? There are niche credit unions specialized for these groups, and they often offer highly beneficial industry-specific lending programs.
Step 2: Technology and Speed
While personal relationships are the hallmark of credit unions, it’s 2026. You should not have to wait 30 days for a response to your application. A strong, business-friendly credit union will have a fast, streamlined digital application portal.
They should have digital tools that connect directly to your accounting software (like QuickBooks or Xero), allowing their lenders to instantly verify your cash flow without forcing you to hunt down piles of paper bank statements. If a credit union’s website looks like it hasn’t been updated since 2018, that is a massive red flag.
Step 3: Ask About Specific Business Expertise
The credit union that is excellent for a car loan or a personal mortgage is not necessarily the best choice for a $500,000 commercial line of credit to finance inventory for a manufacturing business.
When you interview a prospective credit union, ask about their experience in your industry. A credit union that specializes in healthcare practice lending will have different perspectives and better loan structures than one that primarily works with general contractors.
The March 2026 Takeaway: Don’t Lead with a Bank
Your default shouldn’t be the massive financial conglomerate that you can only reach via an 800-number. Your first stop in 2026 should be your local, community-focused credit union. They are built to serve owners like you, and they have the tools and local knowledge to help your business take flight this spring.
Factoring: Cash for Suppliers to the Healthcare Industry – Accounts Receivable Factoring can quickly meet the working capital needs of manufacturers and distributors which serve the healthcare industry.
Program Overview:
$100,000 to $30 Million
Quick AR Advances
No Audits
No Financial Covenants
Most Suppliers are Eligible
We specialize in challenging deals :
Start-ups
Turnarounds
Historic Losses
Customer Concentrations
Poor Personal Credit
Character Issues
Versant focuses on the quality of your client’s accounts receivable, ignoring their financial condition.
This enables us to move quickly and fund in as few as 3-5 days. Contact me today to learn if your client is a factoring fit.
While the macro economy is feeling the “pump shock,” the impact on small business lending and accounts receivable (AR) factoring is more nuanced. For many industries, rising oil prices act as a catalyst for alternative financing, as traditional bank credit tends to tighten just when operational costs spike.
1. Impact on Small Business Lending
Traditional bank lending to small businesses is becoming more restrictive as energy-driven inflation persists.
The “Double Squeeze”: Small businesses are facing higher input costs (fuel/transport) alongside high interest rates. Banks, wary of compressed profit margins, are increasing their underwriting scrutiny.
The Approval Gap: As of early 2026, large banks are approving only about 68% of small business loans, compared to 82% at smaller, community-focused institutions.
Pivot to High-Cost Credit: With traditional loans taking weeks to approve, many businesses are turning to credit cards (averaging 18%–36% interest) to cover immediate fuel and supply chain gaps, significantly increasing their long-term debt burden.
2. The Surge in AR Factoring Demand
In a high-oil-price environment, factoring often shifts from a “last resort” to a strategic cash-flow tool, particularly for energy-intensive sectors.
Fuel as a Fixed, Immediate Expense: In industries like trucking and oilfield services, fuel must be paid for daily or weekly, while customers (shippers or large operators) often demand 30- to 90-day payment terms. Factoring bridges this “cash gap” without adding traditional debt to the balance sheet.
Sector-Specific Trends:
Transportation/Trucking: Factoring companies are seeing record demand. These businesses often enjoy the highest advance rates (90%–97%+) because their invoices are backed by tangible freight delivery.
Oilfield Services: As drilling activity ramps up in response to higher prices (especially in the Permian Basin), service providers are using factoring to scale quickly—buying new equipment or meeting surge payroll without waiting for 60-day payouts from major oil producers.
Manufacturing: With raw material costs rising alongside energy, manufacturers are factoring invoices to maintain liquidity reserves to buy inventory before prices hike further.
Factoring vs. Traditional Lending in 2026
Feature
Traditional Bank Loan
AR Factoring
Approval Basis
Business credit & history
Customer (Debtor) credit
Speed of Funding
2 – 7 weeks
24 – 48 hours
Debt Load
Increases liability on balance sheet
No new debt (selling an asset)
Scalability
Fixed limit
Grows with your sales volume
Cost
Lower interest (6%–12%)
Higher fees (1%–5% per 30 days)
Strategic Outlook
For the remainder of 2026, businesses that rely on “floating” cash flow are likely to prioritize speed over cost. While factoring fees are higher than bank interest, the ability to access cash within 24 hours to pay for $4.00/gallon diesel is often the difference between staying operational and grounding a fleet.
In a volatile economy where oil prices are surging and traditional banks are pulling back, choosing the right financing tool is a high-stakes decision. For B2B businesses—especially those in staffing, digital marketing, and manufacturing—the choice often comes down to the speed of Factoring versus the lower cost of a Bank Loan.
Below is a strategic comparison designed to help you evaluate which path aligns with your current cash flow needs.
Factoring vs. Bank Loans: 2026 Strategic Comparison
Feature
Accounts Receivable Factoring
Traditional Bank Loan
Speed to Cash
Ultra-Fast: Funds usually arrive within 24–48 hours after invoice setup.
Slow: Approval typically takes 30–90 days of underwriting.
Credit Focus
The Debtor: Decisions are based on your customer’s credit and payment history.
The Business: Based on your FICO score, tax returns, and years in business.
Balance Sheet
Debt-Free: It is the sale of an asset (invoices), not a liability.
Debt-Heavy: Adds a liability that can impact your debt-to-income ratio.
Scalability
Unlimited: As your sales grow, your available cash grows automatically.
Fixed: You are capped at a set amount and must re-apply to increase it.
Total Cost
Higher Fees: Usually 1%–5% per 30 days (effective APR is higher).
Lower Rates: Typically 6%–12% APR for qualified businesses.
Risk
Low: No collateral like your house or equipment is typically required.
High: Often requires a blanket lien on assets or personal guarantees.
Export to Sheets
The “Why Now?” Factor: Navigating 2026 Volatility
Pros of Factoring in This Market
Immediate Fuel/Supply Buffer: With diesel prices fluctuating, factoring gives you the cash today to buy inventory or fuel before the next price hike.
Protects Your Growth: In sectors like digital marketing or staffing, you can’t wait 60 days for a client to pay to meet your weekly payroll. Factoring ensures your team stays paid regardless of when the client cuts the check.
No “Covenant” Stress: Bank loans often come with strict “covenants” (rules about your profit margins). If high oil prices temporarily squeeze your margins, a bank might call your loan; a factor simply keeps funding your sales.
Cons to Consider
Margin Impact: If your profit margins are already thin (common in food production or distribution), the 1%–3% factoring fee could eat up a significant portion of your net income.
Customer Perception: While widely accepted today, some ultra-conservative clients might still prefer to pay you directly rather than a third-party factor.
The Bottom Line
If you have long-term stability and time to wait, a Bank Loan is cheaper. However, if you are growing rapidly or facing unpredictable costs, Factoring acts as a flexible insurance policy for your cash flow.
Economy Sheds 92,000 Jobs. The American labor market hit a significant speed bump last month, as the Bureau of Labor Statistics (BLS) reported a loss of 92,000 jobs for February 2026. This unexpected contraction caught economists off guard, as many had projected a modest gain of roughly 60,000 positions.
Coupled with the job losses, the national unemployment rate ticked up to 4.4%, rising from 4.3% in January. While the figure remains low by historical standards, the sudden reversal in momentum has reignited concerns about the underlying health of the economy amidst ongoing geopolitical tensions and domestic labor disputes.
The Numbers at a Glance
The February report was a stark contrast to the start of the year, which initially saw a healthy gain in January. However, even those numbers were revised downward, painting a picture of a job market that is struggling to maintain its footing.
Metric
February 2026 Data
Comparison
Nonfarm Payrolls
-92,000
Down from +126,000 (revised) in Jan
Unemployment Rate
4.4%
Up from 4.3%
December Revision
-17,000
Revised down from +48,000
Labor Force Participation
62.0%
Lowest level since December 2021
Key Drivers of the Decline
Several factors converged to create the “perfect storm” that led to February’s disappointing figures:
Labor Disputes: The healthcare sector, usually a reliable engine of growth, shed 28,000 jobs. Much of this was attributed to a major strike involving over 30,000 workers at Kaiser Permanente in California and Hawaii.
Harsh Winter Weather: Severe storms across the country likely hampered hiring in the construction sector, which saw a decline of 11,000 jobs.
Sector-Specific Weakness: The Information and Transportation/Warehousing sectors both lost 11,000 jobs, while the Federal Government continued its downward trend, losing 10,000 positions.
Geopolitical Uncertainty: The escalation of the conflict in the Middle East has driven up crude oil prices, injecting a new layer of caution into business spending and hiring plans.
“Just when it looked like the labor market was stabilizing, this report delivers a knock-down blow to that view. It’s bad news whichever way you look at it.”
— Olu Sonola, Head of U.S. Economics at Fitch Ratings.
Silver Linings and the Path Forward
Despite the gloomy headline, there were a few areas of resilience. Average hourly earnings rose by 0.4% for the month, representing a 3.8% increase year-over-year. This suggests that while hiring has slowed, those currently employed are still seeing wage growth that is largely keeping pace with inflation.
The Federal Reserve now faces a delicate balancing act. While the job losses might typically signal a need for interest rate cuts to stimulate the economy, the surge in energy prices due to the war in Iran keeps the threat of inflation high.
Economists will be looking toward the March report (scheduled for release on April 3rd) to determine if February was a temporary blip caused by weather and strikes, or the start of a more concerning long-term trend.
IEEPA Tariff While the Supreme Court invalidated the Administration’s ability to impose tariffs under IEEPA (International Emergency Economic Powers Act), it was deliberately silent with respect to refunds.
As the Administration’s stance is likely to be adversarial, it could take months if not years for businesses to receive IEEPA tariff refunds via conventional channels.
Prior to the Supreme Court Ruling, Hedge Funds were purchasing IEEPA tariff claims at an average of only 22% of the total claim due to the high risks involved. After the Ruling, due to mitigation of some of the uncertainty, they are currently purchasing claims at 75% of the refund amount. Rates are based on claim size and credit quality as tariff refund claims are not assignable. Importers with IEEPA tariff refund claims starting at $500,000 are eligible and there is no maximum limit. AES has monetized $20 million in refund claims since its involvement in brokering IEEPA tariff refund claims commenced 5 months ago. Clients include those in the food, seasonal decoration, apparel and home goods industries.
Instead of waiting 6, 12, 24 months or even longer to receive an IEEPA tariff refund, Hedge Funds can purchase claims within approximately 4 to 6 weeks depending on the quality of documentation assembled by the business.
How the Process of Selling an IEEPA Tariff Claim Works
Concept is: As an example, Company X has paid ($10 Million) in tariffs since April 7, 2025 Company X wants to de-risk prior to determination and finalization of the IEEPA tariff
Refund Process. Company X sells (50%, 100%, or some other percentage) of its tariff ‘claim’ to Buyer A in the form of a participation.
The Trade is nonrecourse to Company X as to the outcome of the Refund Process; but recourse to Company X only if the amount / validity of the claim is proven to be false, or too high.
Process for Selling IEEPA Tariff Claims: As an example, Company X has paid $10 million in IEEPA Tariffs.
Company X agrees to “sell” its tariff claim to Buyer for 75% of the claim amount, i.e. $7.5 million.
Buyer sends Seller a Confirm, and then ultimately a Participation Agreement which will govern the transaction. IMPORTANT – Company X retains its status as the “Plaintiff” / “Claimant” since these tariff claims are not transferable.
Buyer might ask Company X to commence litigation for the return of the IEEPA tariffs paid. The rationale for this is that it is possible that only those parties who have commenced actual litigation are entitled to refunds. Thus, Company X will need to commence litigation in order to receive their refund.
Buyer will continue to monitor the situation and inform Company X of developments. If and when the refund is received on the claim, Company X will receive the refund and forward to the Buyer.
Using an IEEPA Tariff Claim as Collateral for a Loan
In lieu of selling an IEEPA Tariff Claim at a discount, it is possible to use this claim as collateral for a term loan. This term loan would be on a “recourse: basis to the borrower.
The potential loan amount could be up to approximately 50% to 60% of the total IEEPA claim amount. However, the claim must exceed $20 million to qualify for a loan. The interest rate would be in the low to mid-teens.
Key Points Regarding the Sale: Company X (as seller of the Claim) must be a financially healthy enough counterparty for Buyer A to enter into what could be a 2-to-5-year process of obtaining the refund. Legal fees are split going forward based on risk percentage. If Company X sells 100% today, Buyer A will pay 100% of legal costs today.
Buyers are currently paying up to 75% to companies seeking to sell their IEEPA tariff claims. However, this is an evolving market and these percentages can either increase or decrease depending on the markets’ reaction to the Trump Administration’s expected obstructionism and the unresolved Court of International Trade’s procedural issues. Prior to the Supreme Court decision, buyers were purchasing tariff claims at an average of 22% due to the high risks involved.
We will be monitoring on a daily basis the rates at which Buyers are purchasing IEEPA claims and we will update our website accordingly. Feel free to email us to ascertain what the rate is on any particular day.
There would likely be an administrative process instituted such that companies that have paid these IEEPA tariffs will need to file special claims and wait to get refunded by the government. The process of receiving the refund payment from the government could take up to 2 to 5 years according to trade experts.
This details how investment firms are turning a legal and political mess into a new trading opportunity.
The situation stems from a recent Supreme Court ruling that tossed out several of President Trump’s sweeping tariffs. This has created a scramble for companies to claw back the levies they have already paid—estimated to be as high as $133 billion.
The Rise of “Claims Trading”: Large corporations (like retailers and manufacturers) that paid billions in tariffs are now selling the rights to their potential government refunds to Wall Street investors.
Why Companies Are Selling: Rather than waiting years for the government to process refunds or navigate complex litigation, companies are opting for immediate cash by selling their claims at a discount.
The Players: Specialist investment firms—including King Street Capital Management, Anchorage Capital Advisors, and Fulcrum Capital—are among those pouncing on these claims. They are betting that they can eventually collect the full refund from the Treasury, netting a significant profit.
Legal Uncertainty: The Supreme Court has not yet explicitly ruled on whether the government must issue refunds for the tariffs already collected. Despite this, investors are moving quickly to snap up these rights, treating them similarly to how they trade the debt of bankrupt companies.
The “Chaos” Factor: The process is currently a “long, drawn-out mess” with high administrative hurdles. Traders are effectively providing a “liquidity service” to companies that want the tariff money back on their balance sheets now rather than later.
In short, while the reversal of the tariffs has caused massive administrative and fiscal confusion for the government, Wall Street has identified it as a lucrative new asset class.
Factoring Proposal: After recently recovering from the devasting impacts of tariffs, this company requires PO financing to rebuild inventory. Their existing factor is uncooperative and must be replaced by Versant which has the ability to facilitate PO funding though a trusted partner.
