Accounts Receivable Management Solutions

Posted by on April 6, 2016 in | Comments Off on Accounts Receivable Management Solutions

Have you ever heard, “You can master your strength and outsource your weaknesses”? Being an entrepreneur, you know that efficiency and cash flow are key to the success of any business. Why exhaust yourself with a critical aspect of your business you may not excel at? Managing your accounts receivable is often best outsourced to the experts. A/R Management is critical to a firm’s growth and survival. Through the AR management process, you determine the most favorable credit policy to each critical customer. One of the key objectives of Accounts Receivable Management is to find out if the benefits from extending credit is greater than the cost of maintaining investment in accounts receivables. You can get the cash flow predictability if you manage your accounts receivable effectively. You can optimize your AR management processes by following six main aspects. An effective AR management program should include: Know your Metrics. Whenever you are taking credit risk on a customer, knowing how much risk your company can take on and measuring that risk becomes critical. All your actions originate from measuring that risk and give you a thoughtful, holistic AR policy. AR financing options should be organized and goal oriented. There should be clarity on what the AR would accomplish for the business. Effective communication is vital. The timing, tone, and content of your calls, reminder emails, templates and follow-ups greatly impact the response rates you get out of your interactions. Tracking AR performance would help you manage the risk involved with credit sales. Regularly tracking your metrics allows you to see the trends in your AR real-time, and catch the sudden changes. Quick Action and Persistent efforts are the keys to success. Without damaging customer relationship, take timely actions and persistently follow up in a professional manner. Proper AR Management will improve your eligibility for better and cheaper financing option. You would be aware of the funding options available. Having proper AR management in place is like building up your credit profile. All the above aspects can be taken care of by outsourcing the AR management process. Many of your competitors are already taking the benefit of outsourcing these services so they can focus on sales and client retention. Qualify Now! Apply with our secure application or to learn more, please contact our National Sales Manager, Chris Curtin via email or call 888-400-5931 ext 1. At Paragon Financial, we offer Accounts Receivable Management Solutions with 23 years of experience. It is about not only working capital, credit protection and collection answers. We provide comprehensive solutions like: Evaluation of the creditworthiness of prospects and customers before granting or extending the credit protection. You save money on overhead costs by not needing credit, accounts receivable or billing personnel Relieve yourself of having computer backups, or the security of data in place related to Accounts Receivable. Save your valuable time, which otherwise is consumed in printing and mailing statements to your customers Enhance and Improve collection practices and monitoring of receivables Allows you to have centralized processing of payments with lockbox services Eliminates the need to send employees to the bank to make deposits As previously stated there are multiple services that we offer under A/R Management Solutions. They Include: Receivables Financing: If you work with creditworthy customers, we can advance you up to 90% on your current outstanding invoices. Whether you are a startup or an existing business, we understand that running a business productively without available funds is not viable. Our financing solutions plan provides you with capital swiftly based on the dues outstanding from your customers. Credit Protection: You probably took a...

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Top 5 Accounts Receivable Factoring Questions Answered

Posted by on February 17, 2016 in Accounts Receivable Factoring | Comments Off on Top 5 Accounts Receivable Factoring Questions Answered

It is not easy to make the perfect funding choice for your business. Getting financial assistance is one of the most important choices you make as a small business owner. It is essential to consider all the pros and cons and how it applies to your unique industry and financial situation. Here are the top 5 questions we get regarding Accounts Receivable Factoring: How does AR Factoring Rates compare to MCA/ACH? A Merchant Cash Advance (MCA) or ACH loan much like Factoring is considered a short-term alternative financing option. While getting a MCA or ACH loan is often considered easier to get than any other type of funding, this ease comes at a cost. The cost of the capital can be much more expensive, in other words you’ll pay very higher interest rate, much higher than conventional loans and higher than most any other alternative solution as well. Also, unlike Accounts Receivable Factoring, in a ACH loan, the Credit Company directly access your checking account in the same way automated payments might go to your mortgage lender from your personal checking account. How Fast Can I Receive Working Capital? The best factoring companies will purchase your receivables and advance you money within 24 hours. The advance amount can range from 80% to as much as 90% depending on the Industry, your customers’ credit histories and other criteria. Once they collect from your customers, the Factoring Companies pay you the reserve balance of the invoices, minus a fee for their services. So you have immediate cash in hand to operate and grow your business. Can I Get Approved if I Have Credit Issues? For Small Companies, start-ups especially, financing options are limited and the borrower is often discouraged when they try to ask a bank or other lender for a loan. Typically, a Business has to provide a minimum of two years of tax returns, profit-and-loss statements, and balance sheets supporting their profits. However, a Business can sell their receivables when it is burdened by weak guarantors or has a negative tangible net worth. Even if the Company has a highly leveraged balance sheet or the extension of credit terms stretches its cash resources, with Invoice Financing there is a funding solution to put the Business back on track. Is Bad Debt Protection Included? Although no business likes to think about it, it’s a fact of life that every day, companies go into formal insolvency. If one of these account debtors is one of your clients, it can prove extremely difficult to recover what you are owed without a bad debt protection in place. With Recourse Factoring you have to repay the funds your Factor has provided against their outstanding invoices. This is where Accounts Receivable Factoring with Credit Protection steps in – to protect your business from the formal insolvency of a customer. Designed to complement your Factoring facility, non-recourse credit protection is an affordable solution that mitigates the impact of bad debt caused by the formal insolvency of a customer, giving you certainty of payment when things go wrong. Factoring with Credit Protection usually includes built-in credit limit analysis for all your customers. This simple step can often help to reduce the risk of insolvency in the first place. What if I have IRS liens? Working around ‘Internal Revenue Service’ problem is difficult; however, it can be done. Often the IRS could consider working out a payment plan with your Company and proceed to Subordination when you show them how Accounts Receivable Factoring will benefit your Business and increase your chances of satisfying your tax debt. The Factoring Company will...

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10/21/15 – Paragon Financial Sees Oil and Gas Industry Suppliers Moving to Non-Recourse AR Financing

Posted by on October 20, 2015 in | Comments Off on 10/21/15 – Paragon Financial Sees Oil and Gas Industry Suppliers Moving to Non-Recourse AR Financing

MIAMI, FL — In the 3rd quarter of 2015, Paragon Financial has experienced a sharp increase in funding deals in the oil and gas industry. Rising debt payments and shrinking revenues are putting oil and gas companies in a difficult cash flow situation. As a result, their suppliers are feeling the pinch with payments taking longer than in the past. The oil and gas suppliers are opting for non-recourse factoring of their accounts receivable in order to keep their working capital at a healthy level. According to a September 2015 report by the U.S. Energy Information Administration (EIA), a group of 44 onshore oil producers, outputting 2.7 million barrels of oil production, are struggling with falling oil prices. For the 2nd quarter of 2015, an estimated 83 percent of the operating cash flow is going to debt payments. Chris Curtin, Paragon Financial’s National Sale Manager said, “With the price of oil low and oil companies net worth dropping, traditional lenders are severely limiting vendors and supplier borrowing power. This ongoing cash crunch is trickling down to oil and gas suppliers,  vendors and distributors. We are seeing a sharp increase in funding deals as they move towards factoring their accounts receivables as a solution to their own working capital needs. Paragon’s non-recourse accounts receivable factoring programs are especially valuable in this unstable environment.“ According to the EIA, oil companies have been borrowing excessive amounts of money to continue to operate. With oil prices in a low trading range, it is becoming increasingly difficult for indebted companies to secure fresh loans. As an example, Oklahoma-based driller Samson Resources Corp. filed for chapter 11 bankruptcy on September 16. Non-recourse factoring help protect Paragon Financial’s clients against oil and gas company bankruptcies. About Paragon Financial Group For over two decades, US companies across all industries have selected Paragon Financial to meet their working capital needs. Non-Recourse Accounts Receivable Facilities are available up to $3,000,000 USD. From government contractors to distribution companies, from staffing firms to manufacturers; business owners have successfully grown their companies with Paragon Financial’s Non-Bank Invoice Factoring, Accounts Receivable Management, Credit Protection and Purchase Order Financing Programs. For fast funding now, please call 888-271-9347 ext 1 or visit our website...

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Debtor-in-Possession Financing Can Help Turn a Company Around Following Bankruptcy

Posted by on April 7, 2015 in Accounts Receivable Factoring | Comments Off on Debtor-in-Possession Financing Can Help Turn a Company Around Following Bankruptcy

For many distressed companies, there is hope for new financing. If they file for bankruptcy protection, they may be able to take advantage of debtor-in-possession (DIP) financing to help them reverse course and return to profitability. It is typically available to companies where lenders believe the company has a credible chance and a viable plan to turn itself around from bankruptcy. The term “Debtor-in-Possession” refers to the fact that the current management and board of directors remain “in possession” of the company following its bankruptcy filing. Many small business owners are not aware that they can obtain financing to turn their company around after they have declared bankruptcy. Many lenders see DIP financing as an attractive lending opportunity because of the special treatment of DIP loans under U.S. bankruptcy law. Under the law, DIP creditors must be repaid before other creditors. In fact, many lenders will commit to a DIP loan while they would not make a loan commitment to the same company in the absence of a bankruptcy filing. DIP Financing Using Accounts Receivable Factoring Companies can also use factoring as a financing tool in DIP financing – a possibility that many small business owners do not realize. In fact, accounts receivable financing can be one of the most flexible ways to obtain financing during the bankruptcy process. Factoring can be a win-win for both the borrowing company and the factoring firm. The borrower obtains needed financing that is not based on its own credit status, and the factoring firm achieves priority status under the Bankruptcy Code. >> Find out more about DIP Financing and how it helps...

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PO and AR financing for Olive Oil Importers

Posted by on January 23, 2015 in Accounts Receivable Financing | Comments Off on PO and AR financing for Olive Oil Importers

From Sacramento, California to Philadelphia, Pennsylvania, the U.S. has an insatiable appetite for oil olive.   And why not, the oil has no cholesterol, is high in monounsaturated fat, and high in antioxidants.  In fact, U.S. consumers devour 38.4% of the world’s imported olive oil.  They rank 3rd in terms of overall consumption behind just Italy and Spain.   Organic olive oil is even one of the top US organic imports. U.S. olive oil imports is big business and continues to rise year-to-year.  Imports have doubled since 1997 and with the retail market consisting of 59% extra virgin, 29% olive oil and 12% light-tasting.  At Paragon we actively help olive oil importers and distributors succeed through purchase order financing, cash against documents funding, accounts receivable financing, AR management and credit protection. Call us Toll-Free 888-400-5931, fill-out the form to the right or chat with us to get critical working capital for your olive oil...

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