Funding for Bank Declines

There are many reasons a business may be declined for bank financing. At Versant Funding, most of those reasons are irrelevant. Most businesses with good quality accounts receivable are candidates for our factoring program.

There are many reasons a business may be declined for bank financing. At Versant Funding, most of those reasons are irrelevant. Most businesses with good quality accounts receivable are candidates for our factoring program.

When evaluating a company for financing, Versant focuses exclusively on the quality of their accounts receivable. That enables us to fund businesses which do not meet bank financing standards.

Program Overview

  • $100,000 to $30 Million
  • Quick AR Advances
  • No Long-Term Commitment
  • Non-recourse
  • Flexible Terms

We are a great match for businesses with traits such as:

  • Less than 2 years old
  • Negative Net Worth
  • Losses
  • Customer Concentrations
  • Weak Credit
  • Foreign Ownership
  • Character Issues

Our AR-focused underwriting allows us to move quickly and fund qualified businesses including Manufacturers, Distributors and a wide variety of Service Businesses (including SaaS) in as few as 3-5 days.

Contact me to learn how your client can use factoring as a bridge to profitability.

When evaluating a company for financing, Versant focuses exclusively on the quality of their accounts receivable. That enables us to fund businesses which do not meet bank financing standards.

Program Overview

  • $100,000 to $30 Million
  • Quick AR Advances
  • No Long-Term Commitment
  • Non-recourse
  • Flexible Terms

We are a great match for businesses with traits such as:

  • Less than 2 years old
  • Negative Net Worth
  • Losses
  • Customer Concentrations
  • Weak Credit
  • Foreign Ownership
  • Character Issues

Our AR-focused underwriting allows us to move quickly and fund qualified businesses including Manufacturers, Distributors and a wide variety of Service Businesses (including SaaS) in as few as 3-5 days.

Our AR-focused underwriting allows us to move quickly and fund qualified businesses including Manufacturers, Distributors and a wide variety of Service Businesses (including SaaS) in as few as 3-5 days.

Contact me to learn how your client can use factoring as a bridge to profitability.

There are many reasons a business may be declined for bank financing. At Versant Funding, most of those reasons are irrelevant. Most businesses with good quality accounts receivable are candidates for our factoring program.

Revitalizing a Manufacturer Grappling with Liquidity

Just spoke to the CEO of a Midwest-based, old-school manufacturing company.

Founded in the 1910s.

Steel is a vital input in their production.

Their customer base is full of other old-school manufacturers that use the components they produce.

The company was essentially dormant a year ago, but the new CEO is turning it around.

I had the opportunity to tell him about factoring and how we could provide the company the liquidity needed to expand.

He LOVES the concept!

We issued our proposal soon after.

I’d like nothing more than to fill our portfolio with companies like this.

Contact me to learn if your manufacturer client is a factoring fit.

Revitalizing an Old-school Manufacturer. Spoke to the CEO of a Midwest manufacturing company. I'd love to fill our portfolio with companies like this

Breathing New Life into Legacy Manufacturing: How Factoring Fuels a Turnaround

I recently had a conversation with the new CEO of a Midwest-based manufacturing company. This isn’t a tech startup or a flashy new enterprise—it’s an old-school, foundational American business. Founded in the 1910s, this company has weathered over a century of economic cycles, market shifts, and industrial evolution.

Their core operation relies heavily on steel to produce components for a customer base made up entirely of other legacy manufacturers. Yet, despite its rich history and solid market niche, the company was essentially dormant just a year ago. Now, under the guidance of a new CEO, the engines are firing back up, and a major turnaround is underway.

But as any turnaround specialist will tell you, vision and market demand are only half the battle. The other half is liquidity.

The Capital Challenge of a Turnaround

Manufacturing is exceptionally capital-intensive. Before a single finished component can be shipped to a customer, raw materials—in this case, steel—must be purchased, and overhead must be covered.

For a company that was dormant just twelve months prior, traditional financing is rarely an option. Banks and conventional lenders look backward; they require years of steady, positive cash flow and pristine balance sheets to underwrite a loan. They see a recent period of dormancy as a red flag. As a result, even the most promising turnaround can stall out before it begins simply because the capital isn’t there to fulfill incoming orders.

Why Factoring is the Perfect Fit

This is where the conversation with the CEO became interesting. I had the opportunity to introduce him to the mechanics of accounts receivable factoring and explain exactly how it bypasses the hurdles of traditional lending.

Because this manufacturer sells to a strong B2B customer base of established industrial companies, they are sitting on a highly valuable, untapped asset: their accounts receivable.

Factoring doesn’t rely on the manufacturer’s historical financial performance or recent dormancy. Instead, it leverages the creditworthiness of their customers. By selling their outstanding invoices, the manufacturer can unlock immediate working capital.

During our discussion, the CEO immediately saw the strategic advantage. Factoring provides the exact mechanism they need to:

  • Purchase Raw Materials: Secure the steel required for production without waiting 30 to 60 days for previous customer invoices to clear.
  • Fulfill Larger Orders: Take on new business with confidence, knowing the capital is available to execute.
  • Scale Without Debt: Generate liquidity organically through their own sales rather than taking on restrictive bank loans.

He loved the concept. It was the missing puzzle piece for his turnaround strategy, and we were able to issue a tailored proposal shortly after our call.

Fueling American Industry

There is something deeply rewarding about helping a century-old business get back on its feet. Providing the liquidity needed to turn the lights back on, get machines running, and put people back to work is exactly why this industry is so vital.

We are actively looking to fill our portfolio with resilient, high-potential companies just like this one—businesses that have the drive, the customers, and the product, but just need the working capital to make it happen.

If you are working with a manufacturing client—whether they are navigating a turnaround, experiencing rapid growth, or simply struggling with cash flow tied up in slow-paying B2B invoices—let’s connect. Reach out to discuss how a strategic factoring facility can provide the liquidity they need to expand.

An Innovative Funding Option for Unprofitable Businesses

Unprofitable Businesses often find securing financing a challenge. Many lenders are focused on the financial performance of their borrowers and will quickly decline businesses without sufficient historic and projected debt service coverage.

Businesses which are reporting losses often find securing financing a challenge. Many lenders are focused on the financial performance of their borrowers and will quickly decline businesses without sufficient historic and projected debt service coverage.

Versant’s factoring program can be a readily-accessible source of financing for businesses which are not generating profits, but have accounts receivable due from creditworthy customers.

When evaluating a company for financing, Versant focuses exclusively on the quality of their accounts receivable. That enables us to fund businesses which are do not meet traditional lending standards.

Program Overview

  • $100,000 to $30 Million
  • Quick AR Advances
  • No Long-Term Commitment
  • Non-recourse
  • Flexible Terms

We are a great match for businesses with traits such as:

  • Less than 2 years old
  • Negative Net Worth
  • Losses
  • Customer Concentrations
  • Weak Credit
  • Foreign Ownership
  • Character Issues

Our AR-centric approach enables us to move quickly and fund qualified businesses including Manufacturers, Distributors and a wide variety of Service Businesses (including SaaS) in as few as 3-5 days.

Contact me today to learn how your client can use factoring as a bridge to profitability.

Businesses which are reporting losses often find securing financing a challenge. Many lenders are focused on the financial performance of their borrowers and will quickly decline businesses without sufficient historic and projected debt service coverage.

Unprofitable Businesses often find securing financing a challenge. Many lenders are focused on the financial performance of their borrowers and will quickly decline businesses without sufficient historic and projected debt service coverage.

Versant’s factoring program can be a readily-accessible source of financing for businesses which are not generating profits, but have accounts receivable due from creditworthy customers.

When evaluating a company for financing, Versant focuses exclusively on the quality of their accounts receivable. That enables us to fund businesses which are do not meet traditional lending standards.

Program Overview

  • $100,000 to $30 Million
  • Quick AR Advances
  • No Long-Term Commitment
  • Non-recourse
  • Flexible Terms

We are a great match for businesses with traits such as:

  • Less than 2 years old
  • Negative Net Worth
  • Losses
  • Customer Concentrations
  • Weak Credit
  • Foreign Ownership
  • Character Issues

Our AR-centric approach enables us to move quickly and fund qualified businesses including Manufacturers, Distributors and a wide variety of Service Businesses (including SaaS) in as few as 3-5 days.

Contact me today to learn how your client can use factoring as a bridge to profitability.

A Funding Option for Customer Concentrations

Businesses with customer concentrations often find securing financing a challenge. Many lenders will decline them outright or place funding limits to reduce their exposure to what is perceived as a high-risk transaction.

Businesses with customer concentrations often find securing financing a challenge. Many lenders will decline them outright or place funding limits to reduce their exposure to what is perceived as a high-risk transaction.

Versant’s factoring program can be an ideal source of financing for businesses with customer concentrations, including those with only a single customer (100% concentration.)

When evaluating a company for financing, Versant focuses exclusively on the quality of their accounts receivable. That enables us to fund businesses with high customer concentrations provided those customers possess a strong credit profile.

Program Overview

  • $100,000 to $30 Million
  • Quick AR Advances
  • No Long-Term Commitment
  • Non-recourse
  • Flexible Terms

We are a great match for businesses with traits such as:

  • Less than 2 years old
  • Negative Net Worth
  • Losses
  • Customer Concentrations
  • Weak Credit
  • Foreign Ownership
  • Character Issues

Our AR-centric approach enables us to move quickly and fund qualified businesses including Manufacturers, Distributors and a wide variety of Service Businesses (including SaaS) in as few as 3-5 days.

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

Businesses with customer concentrations often find securing financing a challenge. Many lenders will decline them outright or place funding limits to reduce their exposure to what is perceived as a high-risk transaction.

A Funding Option for Foreign Ownership

Recent changes to SBA loan regulations have rendered businesses which are not 100% owned by US citizens ineligible for SBA financing. This update has left many businesses with partial ownership by foreign nationals scrambling for an alternative source of financing

Recent changes to SBA loan regulations have rendered businesses which are not 100% owned by US citizens ineligible for SBA financing. This update has left many businesses with partial ownership by foreign nationals scrambling for an alternative source of financing

When evaluating a company for financing, Versant focuses exclusively on the quality of accounts receivable. The personal credit, management experience and nationality of the owners are not part of our underwriting.

Versant’s factoring program can be a convenient source of financing for businesses which are no longer candidates for SBA financing and need an immediate source of working capital.

Program Overview

  • $100,000 to $30 Million
  • Quick AR Advances
  • No Long-Term Commitment
  • Non-recourse
  • Flexible Terms

We are a great match for businesses with traits such as:

  • Less than 2 years old
  • Negative Net Worth
  • Losses
  • Customer Concentrations
  • Weak Credit
  • Foreign Ownership
  • Character Issues

Our AR-centric approach enables us to move quickly and fund qualified businesses including Manufacturers, Distributors and a wide variety of Service Businesses (including SaaS) in as few as 3-5 days.

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

Chris Lehnes

203-664-1535

clehnes@VersantFunding.com

Learn more about factoring

US Debt Reaches $40 Trillion – What Now?

Total U.S. debt has surpassed $40 trillion, a new milestone in the country’s accumulation of budget deficits.

US “total public debt outstanding” officially surpassed $40. trillion according to the U.S. Department of the Treasury.

While that figures is symbolically significant, it is not economically significant. Most investors and economists focus on other metrics, like the Debt to GDP ration, a better sense of an country’s borrowing ability.

But, $40 trillion is a big number, and will draw attention to an unsustainable fiscal trajectory.

Total U.S. debt has surpassed $40 trillion, a new milestone in the country’s accumulation of budget deficits.

Contact Factoring Specialist, Chris Lehnes

Versant Funds $1 Million Non-Recourse Factoring Facility – Service Provider

(August 19, 2026) Versant Funding LLC is pleased to announce that it has funded a $1 Million non-recourse factoring facility for a well-established service providers that works with major hospital systems.

Versant Funding LLC is pleased to announce that it has funded a $1 Million non-recourse factoring facility for a well-established business that provides services to major hospital systems

This private equity-owned company had an imminent, short-term cash need. Its management realized that factoring a subset of their accounts receivable due from financially strong hospitals could be a source of immediate liquidity without requiring their sponsor to invest more capital into the operation.

“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 major health networks, we quickly approved the transaction and were able to meet the company’s funding deadline.”  

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 | clehnes@VersantFunding.com

VERSANT FUNDING DEAL ANNOUNCEMENTS
Secured Finance Network
International Factoring Association: Commercial Factor

In the News: Industry publications

July Job Growth Stalls

Job Growth: The U.S. labor market lost jobs in July, an surprising contraction likely to reignite questions about the economy’s strength when it is also facing elevated inflation.

The latest U.S. Department of Labor report showed that the economy lost 23k jobs in July, a large shortfall undercutting the gain of 83k that economists surveyed by The Wall Street Journal had expected.

Revisions to prior month results showed that the economy added 103k fewer jobs in May and June.

The unemployment rate reduced to 4.1%, from 4.2% in June, even though fewer people were working due to even more individuals existing the workforce.

July Job Growth Stalls

In yet another troubling sign for the labor market, the Bureau of Labor Statistics said that it revised down the prior two months by a combined 103,000. May’s jobs total was cut by 66,000 to 129,000 total jobs added, while June’s total was lowered by 37,000 to a total gain of 57,000.

Economists had been expecting wages to continue pacing at 3.5% from a year ago, but instead wage growth slowed.

“The labor market is stalling again,” wrote Heather Long, chief economist at Navy Federal Credit Union, who called the report “bleak.”

The BLS said employment contracted the most in “local government education,” which declined by 50,000 roles, likely reflecting teachers during summer break. It also flagged a contraction of 19,000 roles in the retail industry. The financial industry shed 14,000 roles.

The agency’s data also showed a 5,000 payroll gain in the manufacturing sector in July and an additional 22,000 roles in construction. These bright spots come as the AI data center boom has benefited some industries, but deeply divided many communities where the centers are located.

Friday’s report likely eases some pressure on the Federal Reserve, which had been widely expected to hike the federal funds rate — potentially as soon as September.

Contact Factoring Specialist, Chris Lehnes

The Illusion of the Small Business Boom

The Illusion of the Small Business Boom
  • A “Side Hustle” Economy Not a Small Business Boom While 2025 saw a record 6 million new business applications, 70% were identified by the Census Bureau as “likely non-employers.” Only 1.7 million actually intend to hire paid employees [53:18].
  • The Founder Obsession: Scott argues this isn’t an entrepreneurial boom, but rather young people disillusioned by corporate jobs starting side gigs. This trend is highlighted by a 69% surge in users adding the title “Founder” to their LinkedIn profiles [01:07:03].
  • Career Advice: Scott strongly advises young professionals against romanticizing entrepreneurship, noting that the fastest and safest path to wealth is often joining an established, fast-growing corporation as an early employee (e.g., employee 10 to 1,000) rather than taking on the brutal emotional and financial toll of starting a company from scratch [01:01:09].

According to the Census Bureau, Americans filed nearly 6 million applications to start new businesses last year. While that is the most on record, the data doesn’t tell the whole story. Only 1.7 million of those applications were identified as high-propensity businesses, meaning they actually intend to hire paid employees. The vast majority of the applications were for entrepreneurs with no plans to hire anyone.

This really grabbed my attention because I’ve been seeing arguments that we are in the midst of a small business boom. I was ready to run with it—it’s a reason to be optimistic. The number of new business applications has exploded, up 10% year-over-year to hit record highs, and this trend has continued into the first half of this year. However, most of these businesses are categorized as “likely non-employer businesses,” meaning they have a very low likelihood of producing actual payrolls.

The Census Bureau uses a methodology that looks at indicators like, Have you indicated that you’re hiring?, Have you provided a first wages-paid date?, and Are you in an industry with strong employment demand? It turns out that more than 70% of these new businesses we were supposed to be celebrating are likely non-employers. This seems like a bit of a fake boom.

The Illusion of the Small Business Boom

This blew me away. In terms of how the sausage gets made here, we do editorial calls where analysts pitch stories, and I comment on them, and our producer decides what we’ll cover. This story just blew my mind because I have this whole “AI optimist” pitch, and one of my favorite stats is that new business formation is at a record high. This data completely punctured that argument because, once again, numbers can be misleading. Six million new business applications sounds like a renaissance of the American entrepreneurial spirit. But, as you pointed out, only 1.7 million (about 30%) were high-propensity.

The other 4 million-plus applications represent one person, a laptop, and an LLC. When you try to start a restaurant, you’re going to hire 10, 20, or 30 people. When you’re starting a food blog as a side hustle, that’s not exactly great for the employment market. What the data actually shows is that this isn’t a small business boom; it’s a side-hustle economy dressed up in Census Bureau language.

In some ways, it probably reflects something unhealthy about the economy. One in three adults says they are planning a business or side hustle in 2026, which is up 94% year-over-year. There’s something very good about that, but the question is: is it entrepreneurial confidence, or economic anxiety wearing a founder’s hoodie? People aren’t starting these companies because times are good; they’re hedging because they can’t afford to pay their rent with their main job. This is one of those times I realized I don’t know what I don’t know, and this supposed new business boom isn’t really a boom at all.

The Illusion of the Small Business Boom

I think this is an important data point, and I want to clarify it for everyone: 70% of these new businesses are likely non-employers according to the census. If you compare this to the mid-2000s, the share of likely non-employer businesses has doubled. So yes, we are seeing new businesses, but most of them are not actually contributing to the broader economy.

Why is this happening? One theory is the rise of the AI-enabled solopreneur—that AI allows you to form your own business easily. That might be part of it, but this trend began way before AI. It exploded during COVID, where suddenly, all of these non-employer businesses skyrocketed. Another theory is that more people are self-employed now—they quit their jobs and are running solo companies. But if you look at the self-employment rate, the number of self-employed Americans is actually down significantly over the past few years.

This leads me to one logical conclusion: these are mostly side gigs. It’s someone who is bored at work. They are still employed and working remotely, but they want to start a lifestyle brand, make an Instagram account, or write a Substack. If they get really excited, they might create an LLC. But to be clear, that’s not a business that is contributing to the economy. It’s essentially a hobby and a legitimized vehicle to express yourself out of the boredom you feel at your actual job.

This is becoming a real trend, especially among young people, because they are so disillusioned by the notion of traditional work—being an employee and receiving a wage. It reflects that philosophy of ‘don’t be a wage slave, start your own business, be an entrepreneur, be a hustler.’ The entrepreneurship mindset has become such a hot topic in our digital, social media-driven world that we are all fantasizing about it. People create these little side hustles so they can say, ‘I’m an entrepreneur now.’ But in reality, you aren’t, because you still work for a company and you aren’t generating a livable income off the side business that supposedly makes you a founder.”

The Illusion of the Small Business Boom

Versant funding

Food processing companies can fund their growth using the cash provided by accounts receivable factoring. Contact Chris at Versant Funding to learn if your client is a fit for factoring. Factoring can also meet the cash needs of staffing companies looking to expand. Contact Factoring Specialist Chris Lehnes to learn if your staffing client is a factoring fit.