Boston Massachusetts Lighting Company – Payroll Funding

Posted by on June 4, 2013 in Energy Company, Success Stories | 0 comments

Client: Lighting Company Industry: Lighting and Energy Conservation Situation: Located in Boston, MA, this forward-thinking company provides cost-effective turnkey lighting solutions from design through installation and ongoing service. Working for commercial, industrial and utility markets, each project is a huge, labor-intensive undertaking, and they relied on factoring to meet payroll. They had been working with Paragon on a steady basis until they perceived they needed to move toward a more traditional finance relationship, but we kept in touch. After four years with another finance company, the Company called Paragon and asked to come back “home.” The relationship with the other finance company had soured. What’s worse, the finance company looked like they were going to go out of business and couldn’t fund any longer. The Company needed to get out of a bad situation quickly. The Solution: Paragon immediately responded with a $1.5 million factoring deal, working under tight time constraints to get the other finance company paid off. Though being familiar with the Company made it easier, we still had to do the buyout agreement, get all the contracts signed and do all the verifications within five days. We worked around the clock and got it done on time. Result: With a new, reliable source of working capital in place, The Company was able to meet payroll and continue taking on new projects without a single hiccup. “Having a customer return after four years demonstrates the strength of the relationships we develop. They were comfortable with our people and happy with our flexibility, which made it easy for them to return,” said Michael Rossi, president of Paragon....

Read More

07/06/2012 – FACTORING OUTLOOK FROM THE FRONT LINES

Posted by on July 6, 2012 in | 0 comments

FOR IMMEDIATE RELEASE Fort Lauderdale, FL– July 6, 2012:  As the financial sector begins to pick itself up and dust off the fallout of the past few years, factoring companies are seeing an uptick – albeit a cautious one – in activity. Paragon Financial Group, a factoring company providing working capital solutions, reports they’re providing invoice factoring and other trade financing for more and more companies to fund growth and take advantage of the recovering economy. In business for more than 18 years, Paragon has seen their share of ups and downs in the economy. Right now they’re seeing larger deals, more competition, and more scrutiny. “We’ve had an increase in business of 28 percent as compared to this time last year,” said Michael Rossi, President of Paragon Financial Group. “Our first quarter growth was positive and that has continued into the second quarter. Right now we have a good pipeline of deals, many of which are larger than we have seen in the past, and many with more established companies. That’s the positive.” Industries providing that uptick include energy, distribution, IT and temporary staffing, according to Rossi. “The energy sector is seeing more small investors and entrepreneurs beginning to take advantage of increasing opportunities in oil and gas, solar, wind and other technologies, and they’re looking to factoring to fund their new business efforts. Within the IT industry, as more companies are converting to cloud computing platforms, the demand for expertise in this area is on the rise. As the economy begins to recover and businesses grow, using temporary staffing is a good way to begin to ramp up, so temporary staffing companies come to us to help meet payroll needs.” In light of bankruptcies caused by the downturn, Paragon is being more diligent in its underwriting but is also finding new opportunities. “Some of our clients’ customers may have had a major exposure to a retailer that filed for bankruptcy, and their credit subsequently deteriorated,” said Jon Anselma, Paragon managing partner. “In some cases we’re able to factor a retailer in bankruptcy that we weren’t able to work with previously due to that retailer’s bad credit. In that case, it actually creates business for us. We’re also seeing deals where the banks won’t increase a borrower’s line of credit, so they’re referring them to us and carving out certain assets so that companies can factor.” Rossi agreed, though notes that many deals are more difficult to close. “Every deal seems to have more complications than normal. You have to be quick on your feet, make fast decisions, and have the ability to move forward and get the businesses the funding they need.” Competition has increased across the board and banks are once again appearing on the scene after sitting on their cash for a few years, a good sign for business. Smallbiztrends.com reports 60.8 percent of U.S. banks surveyed said they plan to do more commercial lending in 2012, and 12.7 percent said they plan to do “considerably more.” A necessary tonic In the long run, the economic downturn may have provided a positive side effect, filtering out the weak and strengthening those that remain, Rossi said. “Looking back at the dramatic events surrounding 2008 and 2009, I can say without a doubt: that which didn’t kill us, made us stronger. Originally it affected us, like most everyone, in a negative way. Current clients lost contracts, organic sales decreased, big retailers went under, credit dropped, people got desperate, and fraud increased. This forced us to look internally and improve ourselves from within. We streamlined our back office,...

Read More

03/30/2012 – Paragon Financial Group Helps Minneapolis Energy Company Fund Payroll with $250,000 Invoice Factoring Facility

Posted by on April 2, 2012 in | 0 comments

FOR IMMEDIATE RELEASE Fort Lauderdale, FL – March 30, 2012: Paragon Financial Group (Paragon) announced that it provided a $250,000 invoice factoring line of credit to a forward-thinking energy service company (Company) headquartered in Minneapolis, MN. The facility will provide working capital to fund the Company’s increasing payroll needs. The three-year-old Company specializes in privately-owned commercial and residential renewable energy systems, providing design, engineering, installation, project management, equipment procurement and commissioning of the best alternative energy system for a given site. They offer turnkey services across the full range of renewable energy systems: wind, solar, biomass and hydrogen. Recently, the Company signed a contract with a new client to engineer and construct a wind turbine field. While representing a large growth opportunity, the client also represented a 100% sales concentration, required extended billing and payment terms and as a young company itself, had a limited financial history. The contractual billing terms stipulated that the Company could only submit sales invoices at quarter end which created 90 days of unbilled receivables. Additionally, the Company had to wait another 45 to 60 days for the invoice to be paid according to the payment terms. This caused a significant cash slow crunch as the Company had to meet payroll expense for dozens of its employees working on the project while waiting to be paid for up to 120 days. Their broker recommended they call Paragon Financial. “We were excited to work with the Company as alternative energy is an important and growing segment of the economy. But first we had to clear a few hurdles to get credit approval for the Company’s client which had very little public financial history and didn’t want to release their financial statements,” said Michael Rossi, President of Paragon Financial Group. Paragon patiently worked with the Company and its client to obtain financial information for credit approval. “We were very pleased to get an approval for a good portion of their billings to the client. Other factoring companies hadn’t been able to get any approvals for them,” Rossi explained. Because this deal resulted in a 100 percent sales concentration, the next hurdle to clear was getting iron-clad written verification from the client that the work had been done and they would pay Paragon. “Other factors wouldn’t touch a 100 percent concentration deal, especially with such a large amount on the line,” Rossi said. “But Paragon worked through the challenges and got the deal done.” With invoice factoring and Paragon’s factoring line of credit, the Company now has the working capital they need to meet payroll and has a reliable, stable source of funding to be able to take advantage of new opportunities to grow. They’re moving forward with their new client, designing and building the new wind turbine field. ABOUT PARAGON FINANCIAL GROUP For over 18 years, Paragon Financial Group has provided working capital solutions for growing companies throughout the US. They serve small to large-size companies across a wide variety of industries through accounts receivable, invoice factoring, and PO 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. For more information visit...

Read More

Back to Top

Get Started Immediately