International Factoring Association Interviews Paragon Financial’s Jon Anselma

The Commercial Factor a Publication of The International Factoring Association Spotlight on Paragon Financial’s Jon Anselma

Can you talk about Paragon being acquired by TFS? The economics of why you sold (reasonable price, right timing, etc.)? Why that company? Do you see the industry changing and if so, how? What’s next?

john anselmaThe factoring industry has changed exponentially since the first starting Paragon in 1994. I’ve seen countless companies come and go. Paragon has always been profitable due to an emphasis on our back office and willingness to adapt to the current market. We have changed when needed, readjusted our strategies, and expanded our financial offerings to keep up with the ever-changing market.

To further expand our financial offerings, we thought it best to be acquired by a larger company that could meet the ever-changing needs of our clients. If we didn’t address those changes, we would start losing clients to companies that would. We were introduced to Trade Finance Solutions by Bruce Sim, who was very familiar with Paragon through a previous banking relationship. I was immediately interested as they wanted to maintain Paragon as a separate entity and retain the staff. TFS recognized that Paragon’s long history of success would add value to their organization.

With TFS, who is very well capitalized, we are now able to provide not just factoring and purchase order financing but also ABL, Trade Finance, Inventory Finance, International Factoring for foreign-based companies, real estate loans, and much larger credit facilities (up to $10 million) than we previously did. We are better positioned to compete being a one-stop-shop for all our client’s funding needs. Our clients are already reaping the benefits of the increased offerings.

We’re excited about what TFS is doing. They’re seeking to increase their portfolio through acquisitions rapidly. Last year they acquired a well-established asset-based lender, Gerber Finance Inc. I can tell you that the transition with Paragon was smooth and seamless.

Paragon Financial isn’t the only company to have been recently acquired. Numerous others over the past year have been sold to banks, private equity, and other finance companies. Activity is high, and the premiums being paid are good but reasonable. I’ve noticed that the well-established companies with a reliable and proven platform have seen the most activity. I’m glad to speak with any other IFA member who is considering selling their company or has questions about the process.

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