A janitorial and hospitality staffing firm runs into challenges with their profitable casino client being on Indian reservations and securing a factoring company.
In business since 2011, a fairly new but highly successful staffing firm out of Connecticut works directly with several casinos. They provide janitorial and hospitality personnel. The casinos doubled their contract with the staffing firm and created the need for additional working capital. The casino is on an Indian reservation which presents many challenges to a factoring company. Factors must look at risk when analyzing a client and Indian reservations are governed by tribal law, not state or federal laws such as UCC rules. Unfortunately, with the increased risk, most factoring companies will not deal with suppliers for Indian reservation owned corporations.
One of Paragon Financial’s experienced salespeople had a previous working relationship with the staffing company and dealing directly with the casinos. Building on several year histories there was never even the smallest hiccup in the factoring arrangements. This solid relationship coupled with a strong contract between the staffing firm and casinos, Paragon took on the staffing firm as a client and offered a receivable financing solution.
Paragon was able to provide a $750,000 factoring line of credit to the staffing firm. The receivable financing program kept their working capital at strong levels and maintained a healthy profit margin with the casinos. All the while spending large amounts of cash to hire new janitorial and hospitality staff. “Paragon Financial has the experience and capital to take on a large variety of clients with unique situations. Not many factoring companies would have been able to take on a client such as this,” says Chris Curtin, President of Paragon Financial.