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 cash when you need it.
What Kind of Businesses Benefit from Receivable Financing? Companies that have:
- Slow paying customers
- IRS issues
- Payroll problems
- Start-Ups & Turndowned by Banks
- Underperforming banking relationships
- Rapid Growth with sales of $25,000 – $3,000,000 per month
- Credit protection against bankruptcy through Paragon’s Non Recourse Factoring
- 23 years servicing industries of all kinds
Who can afford to wait 45, 60 or 90 days to get paid by your large commercial or government customers? Factoring companies like Paragon look at your customer’s ability to pay, not your personal credit. Receivables factoring provides you the working capital your company needs. Contact us today for the perfect factoring program that works for you.
Accounts Receivable Factoring Provides Many Benefits to Small Businesses:
How much working capital is advanced?
80 to 90% of the invoice amount is advanced. 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 23 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, AR Management and your own dedicated “Credit Manager”!
Who collects payment?
We currently manage the AR 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, just to name a few. 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 AR. 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 23 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 personal 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 where the factors client does not have to pay back the factoring company if an invoice is not specifically paid due to 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 customer payment is not made, your company is fully responsible to pay back the balance owed 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.
Money When Your Business Needs It Most!™