Versant purchases a client's accounts receivable and collects payment from customers directly. The client receives an initial cash advance of 75% of the receivables' face value from Versant. The remaining 25% is paid to the client when Versant collects from customers, less a 2.5% monthly fee. This ongoing arrangement provides the client with consistent cash flow for the term of the agreement as new invoices are purchased.

1. Factoring Mechanics
• Versant purchases the client’s accounts receivable and assumes
responsibility for their collection.
• Client is typically advanced 75% of face value of approved
receivables.
– The balance is paid when the receivables are collected.
100% face value of receivables
75% of face value in cash of initial funding
Client Versant

2. Factoring Mechanics
Cash due
against invoice
The Advance —
75% of the face value of the
accounts receivable.
The Rebate —
The remaining 25% of the
face value of the A/R less the
factoring fee (2.5% of the face
value of the A/R per month
outstanding.)
Versant Client
Client’s
Customer

3. Factoring Mechanics
• For the term of the agreement (typically 1 to 2 years),
Versant provides constant cash flow to the client.
• New invoices issued by the client are purchased by Versant based
on predetermined terms.
Client’s
Customer
Versant Client
Cash due
against invoice
Goods/Services
100% of face value of receivables
75% of face value in cash – up front
Face value (100%) less cash advance
(75%) less 2.5% of face value for each month
outstanding upon closing the batch.