A tool to teach financial intermediaries more about factoring as a way to diversify their product offering to clients.

1. Understanding Factoring Chris Lehnes 203-664-1535 [email_address]

3. Different Terminology Account Debtor/Customer Clients Borrower/Obligor Discount/Fee Interest Purchase and Sale Agreement Note/Loan Agreement Client or Seller of Receivables Borrower Factor or Purchaser of Receivables Lender Factoring Volume Loan Amount Factoring Facility Loan Factoring Equivalent Lending Term

8. 6 Steps - Understanding Factoring Initiating a Transaction Step 1 Step 2 Review Process - Underwriting Step 3 Application Review & Legal Documentation Step 4 Closing and Funding Step 5 When a Batch of Receivables is Fully Closed Step 6 Rolling Over New Receivables

10. 1. Find Prospect 2. Hand off to Versant with Intake Checklist and Accounts Receivable Aging 5. Prospect returns Application and Versant sends out contracts to be signed. When contracts are returned Versant makes initial funding. 3. Versant reviews aging and talks with prospect. If a deal is reached Versant issues a proposal 4. Prospect returns signed proposal with check for application fee. Versant sends prospect application

18. Competitive Landscape

21. Frequently Asked Questions and Answers

26. SAMPLE: Impact of Factoring on Profits NOTE: The profit after factoring increased both from a dollar perspective and percentage – from $5,000 to $20,000; and 5% to 10% - respectively. By investing $10,000 in factoring (assumes invoices pay in 60 days and a 2.5% per month rate), the net profit increases by $15,000. $20,000 (10%) $5,000 (5%) Net Profit $10,000 N/A Cost of Factoring $20,000 $20,000 Fixed Costs $20,000 (10%) $10,000 (10%) Variable Cost $70,000 (35%) $35,000 (35%) Gross Profit $130,000 (65%) $65,000 (65%) Cost of Goods/ Services Sold $200,000 $100,000 Revenues After Factoring Before Factoring

27. Broker Commissions Schedule

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