Why Factor With Paragon Financial Group?
Immediate Increase In Cash Flow
Under conventional methods, a company must sometimes wait 30, 60, 90 and sometimes 120 days to collect on an invoice. With factoring, we immediately purchase your invoices and advance an initial payment up to 90% of the invoice amount. When the invoices are paid, you receive the remaining 20% less our fees.
What Does It Cost?
Practically nothing when you consider how much is lost having to wait 60-90 days to get paid on services or products which you have already provided or paid for. This money could be placed in an interest bearing account or be reinvested into your company to help it grow and produce additional revenues. And, keep in mind that Paragon Financial will take over all your labor and other costs for debt collection and credit administration, leaving your employees free for other tasks-or allowing you to cut staff and costs. Think a moment about the discounts your supplier’s offer for quick payment and what those discounts would amount to in a year. What does it cost to pay your staff to send out invoices, deposit checks, log payments, produce reports and handle collections? How many personnel hours does all this require?
Paragon Financial can handle collections (at your request) more professionally and more productively than you can so you can eliminate the overhead cost associated with having someone internally handle collections.
Paragon Financial will handle much of the work associated with processing invoices, including mailing them to customers (addressing envelopes, stuffing them, paying for postage), posting invoices to a computer system, depositing checks, entering payments on the computer, and producing regular reports. Again, you can greatly reduce your current overhead cost associated with these tasks.
Offer Credit Terms To Customers
With Paragon, you can offer credit terms (or extended credit terms) to your customers without negatively impacting your cash flow. You can grow your business by making it easier for your customers to buy from you.
Invoice factoring is the only source of financing that grows with your sales. As sales increase, more money becomes immediately available to you. This allows you to constantly be able to meet increasing the increasing demands within your industry.
Take Advantage Of Early Payment Discounts
Factoring will allow you to take advantage of early payment terms offered by your suppliers. If you can save two percent of your raw materials cost because you have the cash to pay the bills within ten days, then you can use those extra savings towards other areas of your business.
Paragon Financial will provide you with credit information on new customers, which enables you to make better credit decisions. Paragon will also provide ongoing credit monitoring of existing customers to make sure there is no significant diminution in their credit status.
Invoice Factoring Helps Build Credit
Once you begin invoice factoring and you have adequate cash flow, you can begin to pay your bills in a more timely manner and start establishing, or improving, your credit. This improves your chances of getting credit terms from suppliers and improves your chances of getting conventional financing in the future. We can even work with you if you have tax problems or are in bankruptcy.
Leverage Off Your Customers’ Credit.
A company does not need to be credit worthy to factor. You don’t need to be profitable or in business for at least three years or meet any of the other assorted credit criteria required by banks and other commercial lenders. If you have credit-worthy customers, you can get financing through Paragon Financial.
Detailed Management Reports.
Paragon Financial provides you with detailed management reports enabling you to better run your business and manage your cash flow. You no longer have to pay someone internally to produce such reports.
Paragon Financial Group can work in conjunction with your other lenders if they are not providing you all the money your business needs.