Selling Factoring Chris Lehnes 203-664-1535 [email_address]

Factoring How to sell factoring How Versant and Brokers make money Where to find deals

How to sell factoring

How Versant and Brokers make money

Where to find deals

Selling Factoring Our Market Our target market consists of companies that have quality receivables and can’t get conventional financing. Our objective is to make you as efficient as possible as your time is a valuable and finite resource.

Our Market

Our target market consists of companies that have quality receivables and can’t get conventional financing.

Our objective is to make you as efficient as possible as your time is a valuable and finite resource.

How to Sell Factoring Sell the positives Factoring can really help businesses Allows for: Increased production to take on new business Business acquisitions Non-Recourse We take the credit risk on their debtors Speed No financials or audits required Can close in 3-5 business days Dependability Management has over 20 years of industry experience Division of a public company as evidence of financial strength.

Sell the positives

Factoring can really help businesses

Allows for:

Increased production to take on new business

Business acquisitions

Non-Recourse

We take the credit risk on their debtors

Speed

No financials or audits required

Can close in 3-5 business days

Dependability

Management has over 20 years of industry experience

Division of a public company as evidence of financial strength.

How to Sell Factoring (continued) Rebuttals for the negatives “ 2.5% a month is 30% per year” Alternative is Venture Capital so we are cheap. Focus on profits from additional business not the annualized cost of the money. “ 75% Advance rate too low” You can only get 100%, once the facility is flowing advances and rebates will blend together. “ Customers will know” All in the presentation. We present it as growth financing. “ Lose control of AR” AR performs better with us. You have to run your entire business. All we focus on are your receivables. Web based reporting.

Rebuttals for the negatives

“ 2.5% a month is 30% per year”

Alternative is Venture Capital so we are cheap.

Focus on profits from additional business not the annualized cost of the money.

“ 75% Advance rate too low”

You can only get 100%, once the facility is flowing advances and rebates will blend together.

“ Customers will know”

All in the presentation. We present it as growth financing.

“ Lose control of AR”

AR performs better with us.

You have to run your entire business. All we focus on are your receivables.

Web based reporting.

How Versant Makes $$ Versant makes its money by charging a discount rate on the invoices we purchase. The rate is based on the time it takes for an invoice to pay. If an invoice pays within 30 days we charge 2.50% of the invoice amount. If it pays in 45 days we charge 4.18% and so on. If we bought $1,000,000 of receivables and they paid in 45 days we would earn $41,800 based on the above rate structure. Rate structure varies from 2-3% per month and is based upon the length of the contract, volume committed, dilution, strength of debtors and so on…

Versant makes its money by charging a discount rate on the invoices we purchase.

The rate is based on the time it takes for an invoice to pay.

If an invoice pays within 30 days we charge 2.50% of the invoice amount. If it pays in 45 days we charge 4.18% and so on.

If we bought $1,000,000 of receivables and they paid in 45 days we would earn $41,800 based on the above rate structure.

Rate structure varies from 2-3% per month and is based upon the length of the contract, volume committed, dilution, strength of debtors and so on…

How Brokers Make $$ Using the above rate structure let’s go through an example: Assume we factored $1,000,000 worth of receivables in a month and we were paid the full balance on the 45 th day from the invoice date. The fee Versant earned would be $41,800 ($1MM*4.18%). Resulting in the following Monthly Broker commission for the life of the deal: Brokers are paid a percentage of Versant’s Gross Factoring Fees

Where To Find Deals Financial consultants Workout groups/specialists Private Equity groups Boutique M&A shops CPA’s Current borrowers Attorneys (esp. bankruptcy)

Financial consultants

Workout groups/specialists

Private Equity groups

Boutique M&A shops

CPA’s

Current borrowers

Attorneys (esp. bankruptcy)

For more information: Chris Lehnes Versant Funding 888 7 th Avenue Suite 503 New York, NY 10106 203-664-1535 [email_address]