One client, multiple financial solutions
Invoice Factoring, Vendor Guarantees, Cash Against Documents Financing
Client: An importer of French and Chinese goods with corporate offices in Orlando, FL
Industry: Consumer Goods
Situation: The Company imports consumer goods such as Ferrari Bicycles, Ferrari Baby gear, and The Checker Flag motorsport apparel and resells them to retail stores in the United States. They have an agreement with one French manufacturer to be their U.S. distributor. They had an opportunity to work with retail giants Burlington Coat Factory and Buy Buy Baby, but didn’t have the cash they needed to purchase enough product to fill the purchase orders.
The Deal: In comparing financing options, the Company chose Paragon Financial over other companies because we could offer three different financing solutions all in one place, a rarity. We provided:
- A $1 million Invoice Factoring line of credit.
- Vendor Guarantees based on our capital strength to get imported goods released from the freight forwarder.
- Cash Against Documents Financing that was required by some of the Company’s manufacturers before the goods could be released from the freight forwarder.
Paragon took care of all the due diligence for the Cash Against Documents financing and negotiated with the vendors to accept the Vendor Guarantees to complete the deal seamlessly.
Result: Our one-stop-shop financing options gave the Company the ability to pay suppliers, get the goods shipped and fill purchase orders. It also gave them the working capital they needed to grow the business: since beginning our relationship the Company has expanded 30 percent.
About Paragon: For over 24 years, Paragon Financial Group has provided working capital solutions for growing companies throughout the U.S. They serve small to large-size companies across a wide variety of industries through accounts receivable, invoice factoring, 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.