Industry: Lighting and Energy Conservation
Situation: Located in Boston, MA, this forward-thinking company provides cost-effective turnkey lighting solutions from design through installation and ongoing service. Working for commercial, industrial and utility markets, each project is a huge, labor-intensive undertaking, and they relied on factoring to meet payroll. They had been working with Paragon on a steady basis until they perceived they needed to move toward a more traditional finance relationship, but we kept in touch. After four years with another finance company, the Company called Paragon and asked to come back “home.” The relationship with the other finance company had soured. What’s worse, the finance company looked like they were going to go out of business and couldn’t fund any longer. The Company needed to get out of a bad situation quickly.
The Solution: Paragon immediately responded with a $1.5 million factoring deal, working under tight time constraints to get the other finance company paid off. Though being familiar with the Company made it easier, we still had to do the buyout agreement, get all the contracts signed and do all the verifications within five days. We worked around the clock and got it done on time.
Result: With a new, reliable source of working capital in place, The Company was able to meet payroll and continue taking on new projects without a single hiccup.
“Having a customer return after four years demonstrates the strength of the relationships we develop. They were comfortable with our people and happy with our flexibility, which made it easy for them to return,” said Michael Rossi, president of Paragon.