- Immediate increase in cash flow. Under conventional
methods, a company must sometimes wait 30, 60, 90 and sometimes 120
days to collect on an invoice. With factoring, we immediately purchase
your invoices and advance an initial payment up to 95% of the invoice
amount. When the invoices are paid, you receive the remaining 20% less
our fees.
- What does it cost? Practically nothing when you consider
how much is lost having to wait 60-90 days to get paid on services or
products which you have already provided or paid for. This money could
be placed in an interest bearing account or be reinvested into your
company to help it grow and produce additional revenues. And, keep in
mind that Paragon Financial will take over all your labor and other
costs for debt collection and credit administration, leaving your employees
free for other tasks-or allowing you to cut staff and costs. Think a
moment about the discounts your supplier's offer for quick payment and
what those discounts would amount to in a year. What does it cost to
pay your staff to send out invoices, deposit checks, log payments, produce
reports and handle collections? How many personnel hours does all this
require?
- Professional collections. Paragon Financial can handle
collections (at your request) more professionally and more productively
than you can so you can eliminate the overhead cost associated with
having someone internally handle collections.
- Invoice processing. Paragon Financial will handle
much of the work associated with processing invoices, including mailing
them to customers (addressing envelopes, stuffing them, paying for postage),
posting invoices to a computer system, depositing checks, entering payments
on the computer, and producing regular reports. Again, you can greatly
reduce your current overhead cost associated with these tasks.
- Offer credit terms to customers. With Paragon, you
can offer credit terms (or extended credit terms) to your customers
without negatively impacting your cash flow. You can grow your business
by making it easier for your customers to buy from you.
- Unlimited capital. Factoring is the only source of
financing that grows with your sales. As sales increase, more money
becomes immediately available to you. This allows you to constantly
be able to meet increasing the increasing demands within your industry.
- Take advantage of early payment discounts. Factoring
will allow you to take advantage of early payment terms offered by your
suppliers. If you can save two percent of your raw materials cost because
you have the cash to pay the bills within ten days, then you can use
those extra savings towards other areas of your business.
- Invoices are paid faster. Many people don't realize
that some debtors pay factored invoices faster than non-factored invoices.
The reason is that factors may report payment experiences to Dun &
Bradstreet or other credit agencies, and most clients do not. A debtor
who is aware of this knows he may impair his credit rating by paying
a factor slowly, whereas paying the client slowly may not affect his
credit rating at all.
- Credit screening. Paragon Financial will provide
you with credit information on new customers, which enables you to make
better credit decisions. Paragon will also provide ongoing credit monitoring
of existing customers to make sure there is no significant diminution
in their credit status.
- Factoring helps build credit. Once you begin factoring
and you have adequate cash flow, you can begin to pay your bills in
a more timely manner and start establishing, or improving, your credit.
This improves your chances of getting credit terms from suppliers and
improves your chances of getting conventional financing in the future.
We can even work with you if you have tax problems or are in bankruptcy.
- Leverage off your customers' credit. A company does
not need to be credit worthy to factor. You don't need to be profitable
or in business for at least three years or meet any of the other assorted
credit criteria required by banks and other commercial lenders. If you
have credit-worthy customers, you can get financing through Paragon
Financial.
- Detailed management reports. Paragon Financial provides
you with detailed management reports enabling you to better run your
business and manage your cash flow. You no longer have to pay someone
internally to produce such reports.
- Financial Flexibility. Paragon Financial Group can
work in conjunction with your other lenders if they are not providing
you all the money your business needs.
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