Versant Funding Closes $4MM Factoring Facility for Airplane Parts Manufacturer

Versant Funding funded a $4 million non-recourse factoring facility to a manufacturer of precision airplane parts with commercial and military applications.

The financial performance of the manufacturer was negatively impacted by the COVID-19 pandemic and its existing asset-based lender was putting pressure on the business to refinance its facility as soon as possible.

“Versant’s offering was an excellent match for this cash-stressed business,” Chris Lehnes, business development officer for Versant Funding and the originator of this financing opportunity, said. “We are strictly focused on the strength of our clients’ customers and do not underwrite their financial performance. Therefore, the pandemic’s impact on the company’s P&L was not an issue for us.”

This factoring transaction was further complicated because the manufacturer had multiple liens in place from MCA and equipment lenders, but Versant negotiated intercreditor agreements, obtained the necessary subordinations and even agreed to make an over-advance to satisfy the company’s outstanding obligations and provide additional working capital at closing.