German Aerospace/Specialty Coating – Accounts Receivable Financing

Helping Fledgling International Entity Take Flight

A 30 year old international specialty coating company for the aerospace industry.

Industry: Aerospace/Specialty Coating

Situation: This Croatian Company headquartered in Germany is the largest company in the world engaged in preparing and painting molded interior parts for commercial and business aircraft. They were offered an opportunity to sell to a Tier One supplier in the United States, with the caveat that they open a plant in California right next door to the supplier to minimize packaging and transportation costs. Immediately, they incorporated in the United States and began working with an international business consultant to help them through the process of building the plant.  But because the U.S. subsidiary was newly-incorporated, traditional bank financing to build their new site was not available. Their consultant, impressed by Paragon Financial Group’s experience working with foreign companies opening U.S.-based operations, referred the Company to us.

The Deal: $850,000 factoring line of credit.

Because the U.S. subsidiary was foreign-owned and had no U.S. assets, Paragon needed a cross-corporate guarantee with the parent company which was larger and more credit-worthy. We put our diplomacy and negotiating skills to work and were able to seal the three-party deal after conducting due diligence on the international ownership.

Paragon helped the fledgling U.S. Company jump through many hoops along the way. Working through several layers of legalese with lawyers on both sides of the Atlantic, we ironed out the legal issues and flew out to the building site in California to get the contract signed.

Our accounts receivable financing solution gave them immediate access to the cash flow they needed to support their U.S. growth, assistance managing their accounts receivable, and serve as their domestic credit department.

Result: By the time the new plant was completed, the U.S. entity had the financial resources they needed to hit the ground running. Paragon’s solution had helped the Company take advantage of the opportunity of a lifetime.

About Paragon: For over 23 years, Paragon Financial Group has provided working capital solutions for growing companies throughout the U.S., as well as foreign entities looking for a U.S. presence, through accounts receivable and purchase order financing up to $3 million per month in volume.  Paragon is a leading source for receivables financing, government contract financing, payroll funding, and purchase order financing.

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