Accounts Receivable Financing

How does Receivable Financing Compare to a Business Loan?

Receivable financing 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 an advance of up to 90% of the accounts receivable amount upon completion of the work or performance of service. Factoring business invoices is a simple process; you get immediate cash when you need it most to run your business efficiently. Factoring provides you with quick, flexible money when you need it.

What Kind of Businesses Benefit from Factoring Receivable?

  • 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 Non Recourse Factoring
  • 26 years servicing industries of all kinds

Who can afford to wait 45, 60, or 90 days to receive the payment by large commercial or government customers? Factoring companies 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 is working capital 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?

Factoring cost would depend on the company you are working with. The price for unlimited working capital from Paragon can be less than 1.5% per month. This includes Credit Protection, A/R Management, and your dedicated Credit Manager! Find one backed with years of experience and offers very competitive factoring fees.

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?

Nothing is more stressful for a growing business than worrying about meeting payroll each week. Factors offer payroll solution that gets you the money you need every week. Paragon has been providing Payroll Funding to IT, telecom, staffing companies, security guard, and other service companies.

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?

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 due to the bankruptcy of the client’s customer 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, you are responsible for paying the remaining balance to the factor. Between recourse and non-recourse, it’s a natural choice, and that’s why we offer non-recourse factoring to all of our clients. Plus, there is no increase in your factoring fee. We are one of the few factoring companies to provide 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. There are factors, like Paragon Financial, that’s been dealing with the IRS for a long time. These factors don’t shy away from providing financing with tax problems or IRS issues. They will negotiate the subordination with the IRS. The factor then gets you the funds you need quickly to lift the tax lien. If your current finance company has cut you off, they can buy them out.

How much 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 loan 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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