Accounts Receivable Financing

How does Receivable Financing Compare to a Business Loan?

Receivable finance helps grow your small business and meet your cash flow needs. If you have the financial inability to get a bank loan or are considered non-bankable, invoice factoring gives you the working capital you immediately need. Many times, traditional bank financing is not possible for small businesses or the approval process takes an excruciatingly long duration.

The factoring process allows for the advance of up to 90% of the accounts receivable amount the day the work is completed, or the service is performed. Factoring business invoices is a simple process; you get immediate cash when you need it most to run your business efficiently. This type of financing provides you with quick, flexible money when you need it.

What Kind of Businesses Benefit from Factoring Receivable? Companies that have:

  • Slow paying customers
  • IRS issues
  • Payroll problems
  • Start-Ups & Turn down by Banks
  • Under-performing banking relationships
  • Rapid Growth with sales of $30,000 – $10,000,000 per month
  • Credit protection against bankruptcy through Paragon’s Non Recourse Factoring
  • 25 years servicing industries of all kinds

Who can afford to wait 45, 60 or 90 days to receive the payment by your large commercial or government customers? Factoring companies like Paragon look at your customer’s ability to pay, not your credit. Receivables factoring provides you with the working capital your company needs. Contact us today for the perfect factoring program that works for you.

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Accounts Receivable Factoring Provides Many Benefits to Small Businesses:

How much working capital is advanced?

You can get an advance of 80 to 90% of the invoice amount. The exact advance rate is dependent on your industry and specific funding arrangement for your company.

How long does it take to get the cash?

Cash can be received as quickly as 24 hours once your account is set-up and ready to go.

What is the cost of factoring and the associated rates?

Backed with 25 years of experience, we offer very competitive factoring fees. Costs for unlimited working capital from Paragon can be less than 1.5% per month including Credit Protection, A/R Management, and your own dedicated “Credit Manager”!

Who collects payment?

We currently manage the A/R credit protection, collections and cash advances for clients receiving payment to us on their behalf from WalMart, Comcast, Neiman-Marcus, Textron, Time-Warner, AT&T, the US military, and many state/local/city governments. We are not a collection agency hounding companies for bad debt. If we do not make your customers happy, we do not get to manage your A/R. Paragon is famous for our “soft touch” with account debtors (your clients).

What if I'm behind on payroll?

Paragon has been providing Payroll Funding to IT, telecom, staffing companies, security guard, and other service companies, for over 25 years. Nothing is more stressful for a growing business than worrying about meeting payroll each week. Our payroll solution gets you the money you need on a weekly basis.

Does factoring work if my credit is bad?

Factoring looks at the credit standing of your customer to determine if you qualify for funding. Personal credit issues are not a problem.

What happens if my client never pays the invoices?

Credit protection against bankruptcy through Paragon’s Non-Recourse Factoring arrangements Non-Recourse Factoring or Without Recourse Factoring is an agreement within a factoring agreement. The factor’s client does not have to pay back the factoring company if nonpayment of the invoice is an invoice due to the bankruptcy of the client’s customer (the Account Debtor) under an invoice with credit protection in place. Paragon proudly offers Credit Protection as part of our Non-Recourse Program.

Recourse means if a customer fails to pay, your company is fully responsible for paying back the balance left to the factor. Between recourse and non-recourse, it’s an easy choice, and that’s why we offer non-recourse factoring to all of our clients. Plus your factoring fee is not increased. We are one of the few factoring companies to offer credit protection at no additional cost to you.

I have IRS issues, can I get funding?

IRS tax liens and other IRS issues can often be worked around. At Paragon Financial, we have been dealing with the IRS since 1994. We don’t shy away from providing financing with tax problems or IRS issues. We will negotiate the subordination with IRS and get you the funds you need quickly to get the tax lien lifted. If your current finance company has cut you off, we can buy them out.

What does Accounts Receivable Factoring Cost?The Benefits of Accounts Receivable Financing ar factoring calculator

Are you wondering how the cost and fees stack up compared to MCA loans, bank business loans rates, SBA loan rates, other lenders and their financing packages? Use our powerful receivable factoring calculator to compare factoring rates.

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Accounts Receivable Financing

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