Does Versant offer factoring in all U.S. states?
Does Versant require certified financial statements in the application process?
No, there are no financial statement requirements.
Does a company have to be profitable to qualify for factoring?
Not always, some clients are new companies that have not yet turned a profit, or they have suffered recent financial losses. Versant looks at the quality of a company’s customers rather than its specific financial condition.
How long does the closing process take?
A typical deal can be closed and funded within one week of the initial referral – in some cases a closing can be expedited.
What industries will Versant purchase accounts receivable from?
Almost all industries – except medical, trucking and construction – where clients sell a service or goods and their account debtors (customers) have good credit.
Is there a minimum volume of receivables that needs to be committed to in order to qualify for factoring?
In most cases, Versant will look for a minimum monthly volume of no less that $100,000 per month.
Does Versant require personal guarantees?
No – this is because Versant takes the credit risk based on the factored invoices. Versant does require a Performance Guarantee to assure that the invoices are valid. The principals may be responsible for loss suffered by Versant if there is a non credit problem with the accounts receivable.
Who qualifies for factoring?
A wide range of companies in a multitude of industries, including some with a negative net worth, that are losing money, and often even companies in Chapter 11 Bankruptcy. Companies that have a bank loan secured by its accounts receivable may not qualify for factoring unless the bank agrees to release its lien on the accounts receivable.
Can a company with little or no credit history qualify for factoring?
Yes, as long as they have credit-worthy customers.
Will a company seeking factoring be viewed negatively by its customers?
No, factoring is used by many large corporations in the U.S. and globally to improve cash flow, support growth and increase profits. In fact, over $100 billion worth of factoring is done every year in the U.S.
Do a company’s customers always know when a company is seeking financing through factoring?
Yes, Versant must notify the account debtor to pay the amounts due to Versant.
What are Versant’s basic requirements for factoring?
That prospective clients provide goods or services to credit worthy customers and that we can verify that the invoices being considered for factoring are accurate.