There are many different types of businesses that Versant Funding's factoring facility can help. Several scenarios are outlined in the attached presentation.

1. Factoring: How we help small
businesses get funded.
By Dan Broadley
561.405.4101
dbroadley@versantfunding.com

2. Scenarios: Examples of Deals We Have Closed
• Cash flow shortfalls / slow turning receivables
• Company emerging from bankruptcy
• Company whose lender is exiting the relationship
• Start-ups:
– With personal bankruptcy
– With cash flow issues
• Company with IRS liens and SBA loan encumbering all assets
• Company with customer concentration

3. Cash Flow Shortfall
Situation
A cash-strapped domestic furniture manufacturer in the Midwest had worked
hard to secure a $900,000 purchase order from a major department store.
Success
In just three days Versant was able to turn the company's accounts receivable
into cash with an initial advance of $280,000, enabling it to pay critical
suppliers. Through the use of the Versant factoring facility, the manufacturer
was able to nearly double its monthly production and sales.
Commissions paid: $42,256.90

4. Slow Turning Receivables
Situation
A corrugated box manufacturer was being strangled by its slow turning
receivables. Their receivables were turning on an average of 60-70
days even though the terms were 30 days, which caused undue strain
on their working capital and issues with suppliers. They were being
forced to turn away larger jobs.
Success
Versant’s initial funding of $380K provided some breathing room and
within 2 months Versant’s collection department reduced the client’s
average pay days to 40.
Commissions paid: $50,358.76

5. Coming Out of Bankruptcy
Situation
Following a Chapter 11 filing, a New Jersey manufacturer with $1.6 million of
debt was in workout with a money center bank. The company was forced to turn
down orders because it lacked the working capital to fulfill them. It had
approximately $300,000 of receivables on its books, and $1.1 million in
equipment.
Success
Versant negotiated a discounted payoff of $950,000 with the company's bank,
saving our client $650,000. In addition, Versant was able to use an industry
contact to finance the equipment to pay off the bank. Finally, by factoring the
company's receivables Versant gave them the working capital needed to fill the
orders they had previously turned down.
Commissions paid: $65,588.75

6. IRS Lien and Bank Exit
Situation
A community bank was looking to exit its relationship which consisted
of a line of credit and a term loan because of its borrower’s poor
performance and IRS liens.
Success
Versant was able to negotiate a collateral sharing agreement whereby
Versant paid off the LOC and paid down the term piece over time. In
exchange, the bank subordinated its lien against the company’s
accounts receivable. This deal provides an example of a “win-win”
situation for all parties involved as the bank got out of a deal it no
longer wanted and the company got a new source for its working
capital.
Commissions Paid: $108,700.21

7. Cash Flow Shortfall & Bank Exit
Situation
A metal fabricator encountered cash flow problems caused by large
orders from several of its most important customers. In addition, the
company had multiple liens on its assets.
Success
Versant provided a $3.5 million factoring facility that enabled the
company to quickly fill its order backlog. Versant further arranged for
another lender to be paid off. The new factoring facility gave the client
the ability to meet larger orders from its most important customers,
providing a solid foundation for future growth.
Commissions paid: $47,691.04

8. Startup: Owner with Personal Bankruptcy
Situation
Electronics Manufacturer in the midst of a personal bankruptcy had
$10MM in PO’s for the holiday season with HSN and QVC but did not
have the capital to produce the goods.
Success
Versant was able to secure them PO financing through an industry
contact and in conjunction with our factoring facility they were able to fill
the PO without using any of their own capital.
Commission Paid: $60,483.61

9. Start Up – Large PO & Negative Cash Flow
Situation
This public company, a recent start-up, had a purchase order for
40,000 units of a high-tech product from the largest U.S. home
improvement chain. The company was operating with a negative cash
flow, however, and did not have the capital to produce the units.
Success
Versant opened an irrevocable letter of credit to allow for the
production of the units. The successful, on-time delivery of the 40,000
units provided all-important credibility to the company, which leveraged
this success to secure additional orders for its technology product.
Commissions paid: $84,451.50

10. IRS & State Tax Lien Issues
Situation
A leading over-the-counter pharmaceutical manufacturer had IRS and New
Jersey state tax liens totaling almost $200,000. In addition, an SBA lender
had a blanket lien on all company assets. On the positive side, the company
had strong accounts receivable with leading retail pharmacy chains and a
strong distributor.
Success
Versant provided funding that enabled the company to pay off its IRS and
New Jersey obligations. Versant then negotiated a pay-down of $275,000 in
exchange for the SBA lender's release of its lien on the company's accounts
receivable.
Commissions paid: $56,502.23

11. Single Debtor Concentration
Situation
A U.S. Subsidiary of a European corporation needed to finance it’s
growth but did not have audited financials. In addition, 100% of it’s
sales were to a single company with whom they did in excess of
$60MM annually.
Success
Versant was able to get comfortable with the credit of their single
account debtor and because Versant is not constrained by bank
financing a single debtor concentration was not an issue.
Commissions paid: $893,185.83

12. Commission Schedule
Per Month Per Annum
Sales $750,000
Invoices Closed $750,000 $9,000,000
Factoring Fees $37,500 $450,000
Commission Per Month Per Annum
10% $3,750 $45,000
Assuming we factor $750,000 worth of receivables in a month at a 5% rate
(based on historical averages) Versant’s monthly fees would be $37,500
($750,000*5.0%). This would result in a monthly commission of $3,750 for
the life of the deal (typically 2 years) for a total commission of $90,000.

13. If you’re interested in getting more information about factoring or if
you have a company that we can help please contact me:
dbroadley@versantfunding.com
561.405.4101