10 Fascinating Textiles & Apparel Industry Facts

The textiles and apparel industry is a major player in the global marketplace worth several trillion dollars. With such large amounts of capital flowing through the textile and apparel industry, funding options such as non-recourse accounts receivable financing and purchase order funding are ideal.  Here are 10 fascinating facts about the industry:

  1. The global textile and apparel industry, which includes fabrics, clothing, footwear and many other manufactured goods, is currently worth nearly $3 trillion.
  2. The world childrenswear market is expected to reach beyond $266 billion in 2016, marking a 31 percent increase in five years.
  3. Global bridalwear is expected to be valued $66.6 billion by 2017.
  4. Global menswear is expected to be valued at $571 billion in 2018.
  5. Global womenswear is expected to be valued $773 billion in 2018.
  6. The global market for textiles made from organic cotton was over $16.7 billion in 2014.
  7. The US is the largest importer of garments in the world.
  8. Nearly 40% of apparel products sold in the US are imported from China.
  9. American households spend nearly $2,000 on apparel, footwear and other textile related products and services annually.
  10. The global fashion apparel industry represents nearly 2% of the world GDP. Nearly 75% of world’s fashion market is concentrated in Europe, the USA, China and Japan.

Fast funding for Textile Industry!

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Protecting Your Business from Future Uncertainty

Understanding the market trends of the future will mean success or failure for your business. It is easier to sell into an expanding marketplace than a contracting one. Think to outsource vs buggy whips and how much the economy has changed in the last fifteen years. Fifteen years ago a positive mention in PC Magazine helped propel Google, housing prices were soaring and Lehman Brothers were business as usual. Ten years ago, people were unsuccessfully predicting the rise of eBay drop-off stores and $200/barrel oil. Five years ago who had heard of Uber?

Sales success is derived from a little luck, being nimble and a decent understanding of what products and services consumers, companies and governments will need. This knowledge helps you make crucial decisions for your business and family. Do you want to know where to build your resources and network? Here are a few good bets on industries to focus on over the next decade:

  • Wood, Cement & Building Product Importing and Manufacturing – Housing prices are rebounding and people are building again. Construction spending is going up and government must deal with a crumbling infrastructure.
  • Computer System Design – The US and the world as a whole continue to race towards a fully autonomous digital world.
  • Outsourcing & Staffing – Technology cannot solve everything and large corporations and government entities do not want to add the legacy costs of full-time employees. Companies and governments of all sizes urgently need staff for IT, healthcare, warehousing, security, clerical, maintenance services and janitorial.
  • 3-D Printing – This emerging technology has the potential to transform traditional manufacturing, from textiles to breakthrough medical innovations.
  • Wine Industry – An aging US population loves its wine and is the
    number one buyer across all price points. 100 million Americans are now wine drinkers.

Factoring clients and brokers can take advantage of Paragon Financial’s forward-thinking culture and deep industry knowledge. Do you have a question about a specific industry and the trends that lie ahead? Are you worried about the unknown and protecting your family and business from future shifts in the economy?

Need help protecting your business?

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Non Recourse Factoring

What is Non Recourse Invoice Factoring?

The Benefits of Non-Recourse Factoring

Do different factoring companies have different definitions of the Invoice Factoring of Receivables Without Recourse? What is Recourse vs Non Recourse Factoring? And most importantly, how do I protect myself and my company from the “Nuclear Option”?

Statistics show that less than 20% of Accounts Receivable Financing Companies utilize credit insurance as part of their Non-Recourse Invoice Factoring product. Why is that number so low? First, you have to have a strong balance sheet and credit culture to qualify as the large insurers who offer credit insurance have very strict guidelines. Paragon passes both hurdles with flying colors. Secondly, it is not an inexpensive investment. However, Paragon being entrepreneurial just like our clients feels it is the right thing to do when offering receivable factoring.

Why do we feel strongly about utilizing credit insurance and passing on the benefit to our clients in the form of Credit Protection? In business, there is only one thing worse than no sales and that’s selling it and not getting paid. Let’s answer the important questions about credit protection and non-recourse factoring.

Key Factors to Consider about Credit Protection via Non Recourse Invoice Factoring:

  • What is the Factoring Company’s definition of Non Recourse? At Paragon we become your defacto credit department (we like to brag you get a free Credit Manager at Paragon). Each one of your customers will have a pre-determined credit limit: $20,000-$1,000,000 for example. What we advance you plus the factoring fees will be covered for bankruptcy protection via our policy. We will always pre-approve your customers before we fund your invoices.  Your salespeople will have a preapproved list on who to solicit for new sales. No wasting time on potential clients who don’t pay their bills. In addition, as your clients make payments on a regular basis with great credit history we can raise their credit protected limits. Your advance rate is also helped with nonrecourse factoring.
  • What isn’t Covered under Non Recourse Factoring? At Paragon, our product gives you Working Capital, Credit Protection, and AR management. You are in charge of keeping your customer happy. A big part of Accounts Receivable Management is confirming that your customer is satisfied with your service and product. Just like you, we want your customer’s quality, quantity and timeliness need to be met. Of course, that is your job. Hopefully, our services will let you concentrate on meeting your customer’s needs since we have alleviated your credit and working capital issues.
  • What if My Customer just doesn’t Pay Me? This is a question we hear from time to time and the million dollar answer is… Why? Creditworthy customers who have a history of paying their bills on time typically don’t turn bad overnight.  Something is going on. Improper paperwork? High return rate? Staff turnover? Fortunately, Days Sales Outstanding (DSO) typically goes down for our new clients as the AR Management and Invoice Verification process reduces errors and speeds up the Accounts Payable Department steps.
  • What if My Customers just Pay Slow? That is a great question and the answer is… We are OK with Slow Paying Customers as long as they pay within 75 days  (and we understand some industries like Oil & Gas can take longer) and we can get credit insurance on them. Again, it is all about protecting your business (and ours).
  • What is the “Nuclear Option”? Your largest (or only) customer goes bankrupt… Paragon like you wants to live to fight another day. Sports Authority, A&P, Kodak, General Motors, Radio Shack, Linens n Things, Circuit City, Blockbuster, Adelphia; the list of huge, once healthy companies filing bankruptcy is endless. That is why we can credit protect you and the value we place on it contributing to your company’s health and survival.
  • Is this For All Industries? Yes. As long as your customers are creditworthy, one the many factoring benefits is is we cover all types of account debtors. This a very popular feature in freight factoring and bill factoring. With Invoice Financing from Paragon, turn your freight bill into immediate positive cash.

Want to discuss Non-Recourse Invoice Factoring and the Safety Net it can give your business?

Apply Securely, call 888-400-5931 ext 1 or email us.

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Turning Business Tax Issues into Opportunity

One of the most frustrating things in the US is having a high growth business but dealing with legacy unpaid taxes or tax liens. It is very difficult to deal with your financial needs with the unpaid tax albatross hanging around your businesses neck. However, for 22 years we have been helping businesses get the working capital they need who have unpaid taxes or tax liens.

A few things that separates Paragon from other AR Funding & PO finance companies:

1) Is this their area of expertise? For 22 years we have been negotiating with the IRS on the client’s behalf. And many times, we have been funding clients even before a tax payment plan is in place.

2) What is their experience dealing with the IRS or other tax agency? Bureaucracy and the complications of the tax code can be very difficult. We have contacts inside the IRS and we have professionals internally with the proper knowledge.

3) Speed is critical and our tax group is built to get you funding fast.

Get fast working capital for your business today!

Apply Securely, call 888-400-5931 ext 1 or email us.

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Factoring Tax Issues

If you have debt to the IRS, obtaining financing or working capital for your business is difficult at best – unless you work with a funding source that can help fix your tax issues and provide the necessary working capital at the same time.

Factoring tax issues is a working capital solution many did not know was an option. Paragon Financial is ahead of the curve in dealing with the back-taxes problem. We have access to up-to-date information on IRS liens, levies, tax compliance history, business name discrepancies, accrued tax liabilities, and IRS installment agreements – every relevant piece of information we need to ensure that there is no risk of your receivables being taken by the IRS to fulfill back-tax obligations.

For 22 years, Paragon Financial Group has been factoring tax issues and providing working capital solutions.

Give us a call at 888-400-5931 today, fill-out the form to the right or chat with us.

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Factoring Tax Issues

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Staffing Company Growing Pains, Payroll and Booming Temp Jobs

Temp jobs in the US are booming with a 57 percent increase from 2009 to 2014. This means staffing companies are also feeling the boom. A growing staffing company equals an increased need for working capital, higher payrolls, and larger overhead overall. Nearly 3 million people are employed in temporary jobs from Lakeland, Florida to Omaha, Nebraska.

Analysis from CareerBuilder shows that number will continue to rise. Temporary employment is expected to increase 13 percent (354,877 jobs) from 2014 to 2019.  Staffing agencies need to be financially prepared to handle the additional workload.

CareerBuilder put together a list of fast-growing occupations for temporary employment. Hot areas for temporary employment include the following with the total number of higher paying temp jobs listed:

Computer Systems Analysts
(2014) 11,802
(2019) 14,024

Accountants and Auditors
(2014) 11,130
(2019) 12,654

Management Analysts
(2014) 10,923
(2019) 12,418

Computer User Support Specialists
(2014) 19,597
(2019) 22,276

Software Developers, Applications
(2014) 11,698
(2019) 13,292

Customer Service Representatives
(2014) 88,610
(2019) 100,642

Heavy and Tractor-Trailer Truck Drivers
(2014) 25,075
(2019) 28,479

Registered Nurses
(2014) 46,052
(2019) 52,296

Maintenance and Repair Workers, General
(2014) 23,806
(2019) 27,027

(2014) 21,493
(2019) 24,391

Construction Laborers
(2014) 50,505
(2019) 57,275

Secretaries and Administrative Assistants, Except Legal, Medical, and Executive
(2014) 68,486
(2019) 77,660

Computer User Support Specialists: One of the Fastest Growing Temp Staffing Jobs

Computer user support specialists provide support and assistance to individuals and organizations using computer hardware and software. From Baltimore, Maryland to San Antonio, Texas these temp jobs have seen a 47.8% in year-to-year hiring according to new research by WANTED Technologies.

“Staffing firms are being hired to fill excess jobs that HR teams can’t fill internally either due to overall challenging conditions or lack of internal recruiting time and resources especially for these jobs with niche skill sets,” said Meredith Amdur, president and CEO of WANTED Technologies.

17,895 computer user support specialist temp staffing jobs were added between 2013 – 2014.

Computer user support specialists have the highest salaries in Connecticut, where they earn an average compensation of $60,200. Employees who work in this job make the most money in Mining, Quarrying, and Oil and Gas Extraction, which has average pay scales of $60,610.

For over 21 years, Paragon Financial has helped successful staffing companies grow their business through payroll financing, invoice factoring, receivable financing, AR management and credit protection.

Give us a call at 888-400-5931 today, fill-out the form to the right or chat with us to find out how we can help you.

Financing for Staffing Companies

Founded in 1994, Paragon offers Fast Growing Labor, Guard, IT & Staffing Companies an alternative to bank financing. When banks either WILL NOT loan or offer TOO LITTLE funds, Paragon promptly supplies a steady stream of cash through Invoice Factoring.

Our Programs

  • Invoice Factoring, Accounts Receivables Financing & Credit Protection
  • 90% Advance Rates with Online Invoice Submission, Reporting and D&B Reports
  • The Famous Paragon “Soft Touch” with your Clients
  • Paragon can move Quickly on New Client or High Growth Client Approval versus slow Bank Underwriting. Optional Back Office services are also available.

Target Clients

  • Startups, Turnarounds, Bank Exiting and Non or Under-Bankable Relationships
  • Personal Credit of Owner is not an issue; we look at your customer’s ability to pay
  • Fast Growing Client with sales of $25,000-$3,000,000 per month
  • Companies Looking for Payroll Financing
  • Paragon can fund with Client Concentration & Tax Issues!
  • Staffing Companies for All Industries in All 50 States
  • What is needed to get started? A Simple One-Page Application!

For 22 years, Paragon Financial Group has provided working capital solutions for growing and non or under-bankable companies throughout the United States.

For fast funding or more information, please contact Chris Curtin, National Sales Manager at helpdesk@ParagonFinancial.net, 561-758-6285 (cellular) or toll-free 888-400-5931.

Supply Chain Financing

If you are a small business owner who supplies goods or services to large customers, you may be able to obtain needed cash flow through supply chain financing.

Supply chain financing or reverse factoring is typically a three-way relationship among a supplier, a large customer, and a factoring firm. The customer in effect pre-approves invoices from a given supplier and commits to paying the invoices. Because of the customer’s higher credit rating, the factor is willing to conduct the transaction at a lower fee to the supplier. The factor pays the supplier based on the customer’s credit and will then collect on the invoice from the customer.

In this relationship, the supplier gains by obtaining immediate cash flow for working capital purposes while paying a lower factoring fee. Further, if the supplier has a particularly weak credit history or poor current and projected financials, it benefits through reverse factoring by gaining access to credit that it might not otherwise be able to obtain.

>> Click here for more information on how Supply Chain Financing helps you.

Debtor-in-Possession Financing Can Help Turn a Company Around Following Bankruptcy

For many distressed companies, there is hope for new financing. If they file for bankruptcy protection, they may be able to take advantage of debtor-in-possession (DIP) financing to help them reverse course and return to profitability.

It is typically available to companies where lenders believe the company has a credible chance and a viable plan to turn itself around from bankruptcy. The term “Debtor-in-Possession” refers to the fact that the current management and board of directors remain “in possession” of the company following its bankruptcy filing. Many small business owners are not aware that they can obtain financing to turn their company around after they have declared bankruptcy.

Many lenders see DIP financing as an attractive lending opportunity because of the special treatment of DIP loans under U.S. bankruptcy law. Under the law, DIP creditors must be repaid before other creditors. In fact, many lenders will commit to a DIP loan while they would not make a loan commitment to the same company in the absence of a bankruptcy filing.

DIP Financing Using Accounts Receivable Factoring

Companies can also use factoring as a financing tool in DIP financing – a possibility that many small business owners do not realize. In fact, accounts receivable financing can be one of the most flexible ways to obtain financing during the bankruptcy process. Factoring can be a win-win for both the borrowing company and the factoring firm. The borrower obtains needed financing that is not based on its own credit status, and the factoring firm achieves priority status under the Bankruptcy Code.

>> Find out more about DIP Financing and how it helps you.

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