Accounts Receivable Factoring

It is not easy to make the perfect funding choice for your business. Getting financial assistance is one of the most important choices you make as a small business owner. Considering all the pros and cons is essential and how it applies to your unique industry and financial situation. Here are the top 5 questions we get regarding Accounts Receivable Factoring: #5. How does AR Factoring Rates compare to MCA/ACH? A Merchant Cash Advance (MCA) or ACH loan much like Factoring is considered a short-term alternative financing option. While many consider getting an MCA or ACH loan easier than any

Although bank lending has become somewhat more comfortable over the past couple of years, it is still tough for many small businesses to obtain a bank loan. If a business cannot obtain a bank loan at a particular point in time, it is considered “non-bankable.” The reasons for being “non-bankable” can range widely. For example, the company may be relatively young, with little credit history. It may be experiencing financial difficulties, with an enormous debt burden relative to its earning capacity. Aside from that, it may be in a turnaround mode. Such a company may also be in or close

The textiles and apparel industry is a significant 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 ten fascinating facts about the industry: The global textile and apparel industry, which includes fabrics, clothing, footwear, and many other manufactured goods, is currently worth nearly $3 trillion. The world childrenswear market is expected to reach beyond $266 billion in 2016, marking a 31 percent increase in five years. Global bridalwear is expected to be valued

For many distressed companies, there is hope for new financing. If your company is going through a chapter 11 bankruptcy; has filed for bankruptcy protection, you may be able to take advantage of DIP financing. Debtor-In-Possession Financing helps companies owners to reverse course and return to profitability. What is Debtor-in-Possession Financing? DIP Financing is available to companies where lenders believe the company has a credible chance to turn 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

At Paragon Financial, we work with importers bringing in goods from Canada providing their businesses working capital to succeed.  Quickly and efficiently leveraging purchase order financing, cash against documents funding, accounts receivable financing and credit protection. Below are several interesting facts about Canadian goods being imported into the U.S: Canada ranks #2 behind China for the most imports into the U.S.   U.S. goods imports from Canada totaled $332.1 billion in 2013(the latest statistics available), a 2.5% increase ($8.1 billion) from 2012, and up 50% from 2003. In fact, U.S. imports from Canada are up 308% from 1993 (Pre NAFTA). Additionally,

Machine shops have come a long way since their Industrial Revolution beginnings. Today we are talking about precision automotive, aerospace, and heavy truck. Likewise, construction, medical and die/mold machining. All these shops that must meet the demands of today’s global manufacturing economy. From Columbus Ohio to Sacramento California, the industry employs over 78,000 people, 3,198 companies.  Such companies handle over 12.7 billion dollars in shipments.  For job shops and contract manufacturers, understanding the availability of working capital is essential to quickly adapt to today’s economic pressures. Factoring for Machine Shops Account receivables factoring give machine shops the ability to gain working capital

In 1817, Benjamin Franklin famously wrote. “In this world, nothing can be said to be certain, except death and taxes.” Your epic battle has ended in defeat. Despite your efforts to avoid it, the IRS has won the day and now there is a tax lien attached to your credit report. How will this affect your ability to succeed going forward? Where can you turn for additional small business working capital? Banks would seem to be off limits as they notoriously look at credit scores to make their loan decisions. Your best option would appear to be alternative forms of

Is it good business to let your customers know that you are utilizing invoice factoring to extract the working capital from your accounts receivables and that they should pay the invoice to your factoring firm? We 100% believe it is. Some business owners are concerned about letting their customers know that they have factored their accounts receivables. These owners may feel that “If my customers find out that I’m factoring my receivables, they might think that my company is having financial problems.” In our experience, this turns out not to be the case. First, customers with strong accounts payable departments

How many entrepreneurs watch Shark Tank and wish they could go from rags to riches overnight?  The sharks dangle their deep pockets and connections with the “Big Box” retailers as the prize everyone wants to attain.  A partnership with a “shark” provides the dream contacts and funding every entrepreneur longs for.  The vast majority of small business owners grow by their own devices.  Contacts with the giants, such as Walmart, Target, Sears, Costco. Kohl’s, Staples, Office Depot. Toys “R” Us and Michael ’s are more often established by persistently marketing products or lines of products to corporate buyers.  Assuming the

How Does the Security Guard Staffing Industry Meet Weekly Payroll? The Security Guard Staffing industry as a whole is responding to changing times in our country. A rise in expectation for many guards to perform a wider variety of duties in addition to their primary function of safety. There is a greater demand for specialized services. This is both in monitoring the remote systems and understanding the specific needs of different industries. Such industries include public schools, energy, and chemical to government security. There is an improvement in the training and skills levels due to the influx of former law