Tag Archives: Small Business

Factoring: Use AR To Get Cash for a Successful Summer

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Summer acts as a brutal stress test for business cash flow. For seasonal industries, it’s a chaotic sprint that requires immediate cash to hire seasonal staff and buy inventory. For B2B service companies, summer often brings the dreaded “vacation slump”—decision-makers are out of the office, and Net-30 invoices suddenly stretch to Net-60 or Net-90. Consider Factoring.

In both scenarios, having your capital trapped in unpaid Accounts Receivable (AR) is a massive liability. If you have $100,000 sitting in your AR aging report but can’t make a $10,000 payroll on Friday, your business is technically growing but functionally starving.

This is where invoice factoring becomes a critical tool to unlock your cash flow and keep your summer operations running smoothly.

What is AR Factoring?

Invoice factoring is not a loan; it is the sale of an asset. You are selling your outstanding B2B invoices to a third-party company (the factor) at a discount in exchange for immediate cash.

Here is how the standard mechanism works:

  1. The Advance: You sell a verified invoice to the factor. They advance you the bulk of the invoice value immediately—typically 75% to 85%—usually within 24 to 48 hours.
  2. The Collection: Your customer pays the factor directly according to your standard terms (e.g., 30 or 60 days).
  3. The Rebate: Once the customer pays the invoice in full, the factor releases the remaining 15% to 25% to you, minus their factoring fee (which generally ranges from 1.5% to 2.5% per month of the invoice value, depending on how long it takes the customer to pay and their creditworthiness).

How Factoring Solves Summer Cash Flow Bottlenecks

Relying on AR factoring shifts your business from a defensive posture (waiting for checks to arrive) to an offensive one.

1. Funding the Summer Spike

If your business peaks between Memorial Day and Labor Day, you have to spend money before you make it. You need to repair equipment, purchase bulk materials, and onboard temporary employees. Factoring allows you to leverage the work you completed in May to fund the massive projects you are taking on in June, without waiting for the bank to approve a traditional line of credit.

2. Surviving the B2B Payment Slowdown

When your clients’ accounts payable departments go on summer vacation, your invoices sit on desks. Factoring insulates your business from your clients’ slow payment habits. By advancing the cash, the factor absorbs the wait time. You get the working capital you need to cover fixed overhead costs—like rent, software subscriptions, and core payroll—regardless of whether your client takes 30 or 75 days to pay.

3. Taking Advantage of Supplier Discounts

Suppliers often offer early-pay discounts (e.g., a “2/10 Net 30” deal, meaning a 2% discount if paid within 10 days). If your cash is tied up in AR, you miss these savings. Factoring gives you the liquidity to pay your suppliers upfront. Often, the supplier discount you secure by having cash on hand will offset a significant portion of the factoring fee.

Strategic Considerations Before You Factor

While factoring is highly accessible—because factors care more about your customers’ credit scores than your own—it requires strategic management:

  • Mind your profit margins: Factoring makes the most sense for businesses with healthy margins (typically 15% or higher). If you operate on razor-thin margins, giving up 2% to 4% of your gross revenue to a factor can wipe out your profitability.
  • Recourse vs. Non-Recourse: Understand the terms you are signing. In recourse factoring (the most common and affordable type), if your customer ultimately defaults and never pays the invoice, you must buy the invoice back from the factor. In non-recourse factoring, the factor absorbs the loss if the customer goes bankrupt, but you will pay higher fees for that protection.

If unpaid invoices are the only thing standing between you and a highly profitable summer season, AR factoring is one of the fastest ways to turn your ledger into liquid capital. By treating your receivables as immediate cash, you can stop acting as a free bank for your clients and start investing in your own growth.

Contact Factoring Specialist, Chris Lehnes

Chris Lehnes – Factoring Specialist – Quick Cash Against Invoices

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Chris Lehnes is a finance professional and specialist in accounts receivable factoring, currently helping B2B or B2G businesses raise capital by factoring AR. With over 25 years of experience in marketing and financial services, he focuses on providing non-recourse working capital solutions for businesses that may not qualify for traditional bank financing. [1, 2, 3, 4]

Professional Expertise

Lehnes operates primarily as an educator and intermediary in the factoring industry, helping companies bridge cash flow gaps through their receivables. His expertise includes: [1, 2]

  • Target Industries: He provides funding for a variety of sectors including energy, healthcare, manufacturing, and staffing.
  • Specialized Funding: He specializes in “challenging deals,” such as startups, companies with high customer concentrations, or those with weak personal credit.
  • Financial Content: Lehnes is a prolific content creator, maintaining a YouTube channel focused on factoring tutorials, market analysis, and audiobook summaries related to leadership and business psychology. [1, 2, 3, 4, 5]
  •  

Career & Background

  • Education: He studied Economics at Lafayette College and attended River Dell Regional High School.
  • Online Presence: He actively shares insights on LinkedIn and Twitter/X, often discussing economic barometers like lumber price fluctuations and their impact on residential construction.
  • Public Speaking: He frequently appears on podcasts and webinars, such as the Credit on the Go Podcast, to explain the strategic benefits of factoring. [1, 2, 3, 4, 5]

Chris Lehnes manages non-recourse factoring at Versant Funding, where the primary requirement for funding is the credit quality of the account debtor (the customer paying the invoice), rather than the financial strength of the business itself. [1, 2, 3]

Funding Criteria & Terms

  • Sales Volume: Targets companies with B2B or B2G sales ranging from $100,000 to $30 million per month.
  • Non-Recourse Protection: Versant assumes the credit risk; if the customer fails to pay due to insolvency, the business is not required to reimburse Versant.
  • Flexible Concentration: Unlike many lenders, Lehnes often facilitates deals with 100% customer concentration, where a business has only one major client (e.g., a large municipality or multinational corporation).
  • Funding Speed: Deals can often be funded within one week because traditional underwriting of the borrower’s balance sheet is not required.
  • Typical Fees: Costs are generally around 2.5% of the invoice amount for each month it remains outstanding.
  • Excluded Industries: Generally does not factor for the medical (provider-side) or construction industries. [1, 2, 3, 4, 5, 6, 7]
  •  

Latest Market Analysis (2025–2026)

Lehnes frequently updates his YouTube and Substack with analyses of the broader economy. Recent highlights include:

Chris Lehnes frequently facilitates complex funding through Versant Funding LLC, often solving liquidity crises for businesses that traditional banks might reject. [1, 2]

Selected Case Studies

  • $30 Million Furniture Manufacturer (2025): Provided a massive non-recourse facility to replace a non-renewed loan from a previous factor. This deal supported the company through a significant corporate restructuring.
  • $1.4 Million Auto Equipment Manufacturer (2026): Funded a company supplying global automotive giants. Despite the client’s slow-paying receivables, Versant scaled the facility automatically because the customers were “the strongest on the planet”.
  • $3 Million Housewares Distributor (2025): Stepped in when the client’s existing factor imposed funding limits that prevented them from fulfilling new orders. Versant consolidated existing loans and provided an advance against all outstanding receivables.
  • $1.8 Million Adolescent Group Home (2024): Originated a facility for a newly formed social services provider. Because state and county organizations pay slowly, this factoring arrangement provided the necessary liquidity for them to expand into new regions.
  • Energy Sector Support (2026): Recently focused on the oil and gas industry, helping suppliers bridge working capital gaps caused by the long payment cycles of major energy corporations. [1, 2, 3, 4, 5, 6, 7, 9]


Contact Information

You can reach Chris Lehnes directly for a pre-qualification review or to discuss a specific transaction:

Chris Lehnes and Versant Funding prioritize non-recourse factoring because it allows them to fund high-growth or struggling businesses based solely on their customers’ creditworthiness rather than the business’s own financial history. [1, 2]

Recourse vs. Non-Recourse Factoring

The primary difference is who bears the financial risk if a customer fails to pay an invoice. [1, 2]

  • Recourse Factoring: This is the most common and typically the least expensive option. Under this arrangement, if your customer does not pay their invoice within a set period (usually 60–90 days), your business is responsible for buying back that invoice or replacing it with a fresh one. You retain the ultimate credit risk.
  • Non-Recourse Factoring: In this model, the factoring company (like Versant) assumes the credit risk. If your customer becomes insolvent or files for bankruptcy, you are not required to pay back the advanced funds. Because the factor takes on more risk, fees are typically higher, and they require strict credit approval of your customers. [1, 2, 3, 4, 5, 6, 7, 8, 9]
  •  

Referral Partnership Guidelines

Lehnes actively collaborates with intermediaries, including commercial loan brokers, accountants, and consultants, to source “difficult” deals that traditional banks cannot touch. [1, 2]

  • Recurring Commissions: Unlike real estate or one-time loan fees, Lehnes offers recurring monthly commissions for the entire life of the deal. If a client factors for three years, the referral partner receives a check every month for those three years.
  • Strategic Bridge: He encourages partners to use factoring as a short-term bridge (often 24 months) to help companies stabilize until they can qualify for bank financing or complete an equity raise.
  • Simple Prequalification: To refer a client, you generally only need to provide the client’s industry and a list of their major customers (A/R Aging report). Because Versant does not require full financial audits of the borrower, pre-approval can happen very quickly. [1, 2, 3]

To move forward with a deal for Chris Lehnes at Versant Funding, you typically need a streamlined submission package because they do not underwrite the borrower’s financials—only the collateral (the invoices).

1. Required Documents for a Quote

You can typically get a term sheet or preliminary proposal by submitting just two or three items.

  • Current A/R Aging Report: This is the most critical document. It must show the names of the customers (account debtors), the amounts they owe, and how long the invoices have been outstanding (0-30, 31-60, 60-90 days).
  • Customer List with Limit Requests: A list of the specific customers the client wants to factor, including their addresses and the amount of credit limit requested for each. Versant uses this to run credit checks on the debtors.
  • Sample Invoices: A few examples of the invoices they intend to factor to verify they represent completed work or delivered goods (not progress billing or guaranteed sales).
  • Simple Application:
    • Note: You generally do NOT need to submit tax returns, P&L statements, or balance sheets for a preliminary quote, as Versant relies on the credit of the account debtors. [1, 2, 3]

Next Step:
If you have a client ready, you can email the A/R Aging Report directly to chris@chrislehnes.com  to request a term sheet.

The Red Line: Why U.S. Debt Topping 100% of GDP Matters

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Debt reaches $31 Trillion

For the first time since the aftermath of World War II, the United States has reached a fiscal milestone that was once a distant “what-if” scenario: the national debt has officially surpassed 100% of the country’s Gross Domestic Product (GDP).

As of March 31, 2026, the debt held by the public reached $31.27 trillion, while the total annual economic output sat at $31.22 trillion. In simple terms, we now owe more as a nation than we produce in an entire year.

While “trillions” can feel like abstract Monopoly money, this 100.2% ratio represents a fundamental shift in the American economic landscape. Here is what you need to know about why this happened and what it means for the future.

How Did We Get Here?

This wasn’t an overnight accident. It is the result of decades of “fiscal kicking the can.” The surge to 100% was fueled by three primary engines:

  1. Structural Deficits: For years, the government has spent roughly $1.33 for every $1.00 it collects in revenue.
  2. The Interest Trap: As the total debt grows, so do the interest payments. In 2026, the U.S. is projected to spend approximately $1 trillion on interest alone—surpassing the entire national defense budget.
  3. Demographic Shifts: An aging population is naturally drawing more heavily on Social Security and Medicare, programs that make up a massive portion of mandatory spending.

Why the 100% Threshold Matters

Economists often debate whether there is a “magic number” where debt becomes fatal. While 100% isn’t an immediate “cliff,” it serves as a critical psychological and economic warning light for several reasons:

  • Slower Economic Growth: Historical data suggests that when a nation’s debt exceeds 90% of GDP, average annual growth tends to slow. Resources that could be used for private investment or infrastructure are instead diverted to servicing old debt.
  • Reduced “Crisis Cushion”: When the next pandemic, recession, or war hits, the government has less “dry powder” to respond. Borrowing your way out of a crisis is much harder when your credit card is already maxed out relative to your income.
  • Generational Equity: The debt essentially represents a “tax” on future generations. Today’s spending is being financed by the earnings of Americans who haven’t even entered the workforce yet.

The Cost to the Average Household

To bring these massive numbers down to earth, the Senate Joint Economic Committee’s April 2026 update provides a sobering breakdown:

  • Debt per Person: Approximately $114,000
  • Debt per Household: Approximately $289,000

Is There a Way Out?

The U.S. has been here before. After 1945, the debt-to-GDP ratio was successfully whittled down to 34% by 1980. However, that was achieved through a unique combination of post-war industrial dominance, a massive “Baby Boom” workforce, and rapid GDP growth.

Today, the path is narrower. Solutions generally fall into three difficult categories:

  1. Entitlement Reform: Adjusting Social Security and Medicare to match modern life expectancies.
  2. Revenue Increases: Raising taxes or closing loopholes to narrow the deficit.
  3. Growth Incentives: Policies designed to make the “GDP” side of the ratio grow faster than the “Debt” side.

The Bottom Line

Crossing the 100% threshold is a “reckoning” moment. It signals that the era of “cheap” borrowing is over. As interest payments continue to eat a larger slice of the federal pie, the pressure on the American taxpayer—and the pressure to make hard political choices—will only intensify.

The red line has been crossed. The question now is whether we have the political will to head back toward the black.

Contact Factoring Specialist, Chris Lehnes

Why Importers Are Aggressively Selling IEEPA Tariff Refund Claims

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We continue to assist companies nationwide in converting IEEPA tariff refund claims into immediate cash, even after the launch of U.S. Customs and Border Protection’s(“CBP”) CAPE refund portal and the latest April 28th update from the U.S. Court of International Trade (“CIT”).  

CIT’s April 28th status review confirmed that the lead IEEPA refund litigation has largely moved from the legal entitlement phase into the implementation and payment phase. In simple terms, the question is no longer primarily whether many importers are entitled to refunds, the issue is when those refunds will actually be paid.  

While CBP officially launched CAPE on April 20th to process refunds, there was no new court order requiring immediate payment of all claims. Instead, the CIT is supervising execution, while Customs works through claim submissions, liquidation status, eligibility reviews, and administrative processing.   This distinction matters. CBP has indicated that certain accepted claims may be paid within approximately 45–60 days plus statutory interest.

However, “acceptance” is not the same as submission. Importers must first complete filing requirements, resolve broker authority issues, verify liquidation status, satisfy procedural review, and clear compliance review before the payment clock truly begins.   For many importers, especially those with older entries, previously liquidated claims, multiple brokers, documentation issues, or claims that may fall outside CAPE Phase 1, the actual recovery timeline could extend for many months or significantly longer. As a result, our buyers remain highly active in purchasing IEEPA tariff refund claims, with transactions from $250,000 to $7 million purchased at a Buy Rate of 85%, while claims exceeding $7 million have a Buy Rate of 90%.    

Why Importers are still Selling Tariff Refund Claims after CAPE Opened

Judge Eaton of CIT did not order immediate universal payment of all claims. CBP’s estimated payment window begins only after formal claim acceptance, not submission.

Many claims do not clearly qualify for CAPE Phase 1 and may require later phases. Finally liquidated entries remain one of the largest unresolved issues. Previously liquidated entries may still require protests, reliquidation, or additional litigation. The right to a refund is clearer—but the timing of payment remains uncertain.

CSV upload issues, ACE access problems, and broker mismatches can delay acceptance. Documentation gaps and reconciliation issues remain common. Customs audit and compliance review may delay payment even after filing.

Trump Administration appeal deadlines and future legal developments could delay the timing of refund payments. Processing millions of entries may create substantial administrative backlogs. Port-by-port inconsistencies may slow recovery for certain importers. Working capital needs often cannot wait for government processing timelines/.


Importers Are Choosing To Monetize Now

Immediate working capital for inventory, payroll, and vendor obligations. Reduced lender pressure and improved borrowing base flexibility. Elimination of refund timing risk and litigation uncertainty. Improved balance sheet certainty. Faster access to liquidity without waiting for government disbursement. Stronger buyer pricing now that CAPE implementation is underway as Buy Rates increased from 45% in February to 85% today  

For many businesses, immediate liquidity today is worth more than waiting for a larger payment later. Many importers are no longer asking. “Will I get paid?”, They are asking, “Is waiting worth the delay, uncertainty, and operational risk?”. For many companies, the answer is no.   We work with importers with claims starting at $250,000, with no maximum limit across industries including food, seasonal goods, apparel, and home products.  

Most transactions can be completed in approximately 10 business days, assuming proper documentation and credit quality.  

To learn more about IEEPA Tariff Claim Refunds, Contact Factoring Specialist Chris Lehnes

https://www.cbsnews.com/news/tariff-refund-portal-trump-cbp

Destroy Cash Flow Gaps with Factoring

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

Factoring Program Overview

  • $100,000 to $30 Million
  • Competitive Advance Rates
  • Non-Recourse
  • No Audits or Financial Covenants
  • Most businesses with strong customers are 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 Chris@chrislehnes.com

The Purchase Price of IEEPA Tariff Refund Claims has Increased to up to 85% of the Claim Amount

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Convert IEEPA Tariff Claims to Cash on an Expedited Basis  

I have been actively assisting companies nationwide in converting their IEEPA tariff refund claims into immediate cash.  

U.S. Customs and Border Protection is rolling out a centralized system (CAPE) to process refunds, and some trade experts believe that certain importers could begin receiving refunds within the next six months. However, there remains significant uncertainty around timing, and many industry participants believe that a large portion of claims could still take years to fully resolve.

  Convert IEEPA Tariff Claims to Cash on an Expedited Basis  

This divergence is driven by several factors, including:
The complexity and scale of processing millions of entries
The possibility that certain categories of claims may be prioritized over others, delaying recovery for more complex or lower-volume importers
The need for new administrative procedures, as IEEPA does not clearly define a refund mechanism
The potential for case-by-case eligibility determinations

Ongoing legal and procedural developments, including possible appeals by the Trump Administration and implementation challenges

Liquidation Status – Whether entries have already been liquidated, which in many cases may require formal protests or litigation to reopen and recover duties
The likelihood of inconsistent treatment across ports (port-by-port) or entry types as CBP implements new processes in phases
Documentation gaps and data reconciliation issues, particularly for older entries or those filed across multiple brokers
The absence of clear guidance on how interest on refunds will be calculated and paid, which could lead to further disputes


Capacity constraints within CBP and the potential for processing backlogs as refund volumes scale

Continued legal challenges around the scope of eligibility, including disputes over classifications, valuation, or origin that could delay specific claims


As a result, while some importers may receive refunds within six months, others, particularly those with more complex or previously liquidated entries, could face a multi-year recovery timeline. To address this uncertainty, financial institutions and hedge funds are actively purchasing IEEPA tariff refund claims at a discount.

Current buy rates are as high as 85% of the expected refund value, depending on claim size, credit quality of the importer and documentation quality as these claims are not directly assignable. AES works with importers with claims starting at $250,000, with no maximum limit. Since entering this market five months ago, AES has facilitated the monetization of approximately $20 million in claims across industries including food, seasonal goods, apparel, and home products.  

Market pricing has evolved significantly: Prior to the February 20, 2026, Supreme Court ruling, claims traded at approximately 20–25%
Following the ruling, pricing increased to 40–50%
More recently, improving legal clarity and market participation have driven pricing to current levels of up to 85% of the IEEPA tariff refund amount


While some importers initially adopted a “wait and see” approach in anticipation of near-term refunds, the combination of timing uncertainty and significantly improved pricing has led many to explore monetization as a way to eliminate risk and accelerate liquidity. The Funds AES works with are able to complete transactions in approximately 2–3 weeks, depending on the completeness and quality of documentation.  

For more information on this process, contact Factoring Specialist, Chris Lehnes

PRESS RELEASE: Versant Funds $1.4 Million Factoring Facility to Manufacturer

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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

ABL Advisor: Versant Funds $1.4MM Non-Recourse Factoring Facility to Manufacturer

ABF Journal: Versant Funding Provides $1.4MM Factoring Facility to Manufacturer

LinkedIn Newsletter: Just Funded! $1.4 Million Non-Recourse Factoring to Manufacturer

Secured Finance Network: Versant Funds $1.4 Million Non-Recourse Factoring Facility to Manufacturer

IFA Commercial Factor: Versant Funds $1.4 Million Non-Recourse Factoring Facility to Manufacturer

CT Turnaround Management Association: Member News – Versant Funds $1.4 Million to Manufacturer

Factoring Myths vs. Reality: Clearing the Air

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Factoring Myths vs. Reality: Clearing the Air

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 MythThe 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.

Contact Factoring Specialist, Chris Lehnes

Selecting a Factoring Partner: An Helpful Distributor’s Checklist

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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).

Contact Factoring Specialist, Chris Lehnes

Announcement: Versant Funds $5 Million Factoring Facility to 90 Year Old Service Provider

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(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

Press Coverage

SFNET: Versant Funds $5 Million Non-Recourse Factoring Facility to Service Provider

abfjournal: Versant Funds $5MM Non-Recourse Factoring Facility to Service Provider

ABL Advisor: Versant Funds $5MM Non-Recourse Factoring Facility to Service Provider

LinkedIn Newsletter: Announcement: Versant Funds $5 Million Factoring Facility to 90 Year Old Service Company

IFA Commercial Factor: Versant Funds $5 Million Non-Recourse Factoring Facility to Service Provider