Paragon Financial

New York City Start-up Discount Retail Food Broker – AR Financing and a Purchase Order Line of Credit

One-stop shop for two services
P.O. Financing and Factoring Line

Client: A start-up discount retail food broker based in New York City

Industry: Grocery

Situation: The Company purchases overstock food items from large suppliers at a discount and re-sells them to discount stores such as Dollar Tree. By ordering in bulk and drop-shipping to his retail customers, he avoids the capital-intensive needs of a warehouse and crew. The owner had long ties to the food industry and had recently leveraged his large network of contacts at food sellers to launch this new company on his own. He had an opportunity to work with Dole Food Company, Inc., but he needed working capital in order to pay Dole before he had payment in hand from his retail customers. The Company had great growth potential but had only just incorporated, so bank financing was not available.

The Deal: The Company chose Paragon Financial over other factors because they liked the ability to access P.O. and A/R Financing all with one company. Paragon provided a combination of $500,000 in Accounts Receivable Financing and a Purchase Order (P.O.) line of credit.

Result: Our multi-level funding gave the Company the ability to pay suppliers and work with large enterprises such as Dole, and gave them the working capital they needed to grow the business.

About Paragon: For over 23 years, Paragon Financial Group has provided working capital solutions for growing companies throughout the U.S. They serve small to large-size companies across a wide variety of industries through accounts receivable, invoice factoring, and purchase order financing up to $3 million per month in volume. Paragon is a leading source for receivables financing, government contract financing, payroll funding, and purchase order financing.