What is Invoice Factoring without Recourse?

Posted by on March 14, 2017 in Non Recourse Invoice Factoring | Comments Off on What is Invoice Factoring without Recourse?

What Is a Non-Recourse Factoring Agreement? Thinking about invoice factoring without recourse for urgent cash flow or for working capital to grow your small business? Well, it may seem like there are a lot of factoring options out there for small business. Yet, all accounts receivable factoring options are not equal. Likewise, factoring companies (also known as, “factors”) are not all the same. Many factoring companies only offer factoring “with recourse.” More experienced and long-standing factoring companies offer factoring “without recourse.”  Invoice factoring without recourse or non-recourse factoring is an agreement within a factoring contract 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. With a recourse arrangement, when purchased accounts are not collected by the factor for any reason within a relatively short time, the factor has recourse to charge back to the client the net value of an unpaid invoice. When your company enters into a non-recourse factoring agreement however, your business is protected against extreme situations that prevent your customers from paying an invoice. Whether a factor offers your company invoice factoring with recourse depends on: your factor provides a credit protection program to offset when your customers are unable to pay an invoice due to an unlikely and extreme event, such as, bankruptcy, you choose an established factor that is able to spread its risk among many of its clients, the credit-worthiness of your customers, and your company’s successful application for factoring financing. A typical non-recourse factoring agreement offers the following basic features: Your factor purchases your accounts receivable by paying an advance to your company for up to 90% of the value of each invoice included in your factoring agreement. Your factor then promises to pay your company the difference due for the invoice (once your customer pays the factor for the full value of the invoice) minus factoring fees. The difference due paid by your factor minus the factoring fees, is paid in a timely fashion to your company as each invoice is paid in full by your customer and according to terms in your factoring agreement including non-recourse assurances. How Does AR Factoring Without Recourse Help Your Small Business? First of all, factoring is the purchase of a company’s accounts receivable as opposed to a loan that creates debt on your business balance sheet. You speed up your cash flow by leveraging, or selling-off, the accounts receivable assets your company already has on its books. Factoring focuses on the creditworthiness of your customers, while bank loan departments would focus on your company’s financial history and cash flow. Accounts receivable funding is not a loan. So, your company ends up with less balance sheet debt. A well-established factor providing AR factoring without recourse helps your small business by: providing a master credit policy against the unlikely instance of your customer’s (the “account debtor”) bankruptcy, outsourcing the responsibilities and operational costs of receivables collections and credit assessment, and not only outsourcing your credit department to the factor, but also outsourcing the risk of accounts receivable! Which Businesses Benefit from Invoice Factoring Without Recourse? Many different lines of business benefit from invoice factoring, sometimes also referred to as discount factoring. Some people refer to invoice factoring as discount factoring when the factor purchasing an invoice from its client charges a factoring fee, and then the client thinks of the factoring fee as an amount discounted against the full value of the invoice otherwise to be paid by the client’s...

Read More

12/29/16 – Paragon Financial Group Introduces New Online Invoice Factoring Rates and Fees Calculator

Posted by on December 29, 2016 in | Comments Off on 12/29/16 – Paragon Financial Group Introduces New Online Invoice Factoring Rates and Fees Calculator

MIAMI, FL – Paragon Financial Group introduces a powerful, new online invoice factoring costs calculator that shows a small business the amount of working capital that can be unlocked from unpaid invoices through accounts receivable factoring. In addition, the calculator shows how a business’s never paid invoices (bad debt) due to client bankruptcy or insolvency can become a non-issue with Paragon Financial’s non-recourse funding program. The online Factoring Calculator can be found here: https://www.paragonfinancial.net/invoice-factoring-calculator Paragon Financial’s new calculator estimates invoice factoring fees and allows a small business to compare the cost of other lenders. Including e-mailing the results allowing the small business to easily compare traditional bank business loans rates, SBA loan rates, MCA lender fees and other financing company’s offerings to Paragon Financial’s factoring rates and suite of additional products including credit protection and Accounts Receivable Management. “We are committed to providing our brokers and prospects industry leading tools enhancing their ability to make smart decisions for their businesses. Our new online invoice factoring calculator is a powerful addition to the full set of educational tools Paragon provides,“ said Jon Anselma, Paragon Financial’s Managing Partner. “Much of the true cost associated with MCA or ACH loans is hidden from both borrowers and their advisors. Paragon wanted to give entrepreneurs a tool for clarity when making this critical cash flow and credit decision.” 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 agencies to manufacturers; entrepreneurs have successfully grown their company with Paragon Financial’s Non-Recourse 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 secure website...

Read More

04/03/2015 – Paragon Financial Announces Invoice Factoring Program for Green Energy Fund Contractors

Posted by on April 3, 2015 in | 0 comments

FOR IMMEDIATE RELEASE Ft. Lauderdale, FL, April 3rd, 2015 – Paragon Financial Group announces a new invoice factoring program designed for the working capital needs of green energy contractors. Green financing programs are rapidly spreading across the U.S with 36 active programs and 11 programs in development according to pacenow.org. These programs are stimulating jobs, creating a more climate friendly environment and providing contractors a bountiful amount of work. A study by ECONorthwest showed every $1 million in project spending results in 15 new jobs and $2.5M in economic output.  Paragon Financial has created an invoice factoring program to provide needed working capital to help green contractors increase access to green construction opportunities and maintain profitability throughout the entire life-cycle of green energy jobs. “From Sacramento, California to Jacksonville Florida, we understand the specific needs of contractors and green energy initiatives. From state and federal regulations to the specific types of funding deals contractors experience. The funding program is built on over 20 years of experience funding the construction industry and green energy,” said Chris Curtin, Paragon Financial’s National Sales Manager. Contractors are being asked to complete residential and commercial energy-efficient upgrades such as rooftop solar systems installation projects, energy efficient roofing and windows, recycled water systems(such as gray water reclamation systems) and new heating and air conditioning units. The Property Assessed Clean Energy (PACE) and Warehouse for Energy Efficiency Loans (WHEEL) financing program lead the way for regional programs such as the HERO Program, California FIRST, Green Energy Market Securitization (GEMS) and Ygrene. This is just a few examples of the green energy fund initiative that is spreading across the U.S. Stacey Lawson, Ygrene President and CEO said ,”Ygrene Works allows cities and counties to activate the lowest-cost energy upgrade financing for residents in one simple step.” She continues to state consumers “can save money right away while cities and counties can enhance efforts to achieve environmental targets, create local jobs and generate economic growth.” About Paragon Financial Group For over 20 years, US companies across all industries have selected Paragon Financial to meet their working capital needs. From government contractors to distribution companies, from staffing firms to manufacturers, business owners have successfully grown their companies with Paragon Financial’s invoice factoring, AR management, credit protection and purchase order financing programs. To get funded now, please call 888-271-9347 or visit...

Read More

Use of Temp Nurses Can Save Hospitals Money

Posted by on April 2, 2015 in Invoice Factoring | Comments Off on Use of Temp Nurses Can Save Hospitals Money

Study suggests “modest use” of temporary staff can lead to cost savings and efficiencies … find out how your temp staffing firm can leverage invoice factoring to land more staffing contracts. Read More Daily news from Staffing Industry Analysis: Healthcare staffing providers among the best staffing firms to work for Cross Country revenue up 8% on pro forma basis in Q4 General Employment closes on Scribe, ex-MPS leader takes CEO role Nursing, IT jobs top positions filled through staffing firms, research finds Weatherby Healthcare names new president Fastaff names VP of recruiting Travel nursing interest rises another 3% over Q4 – Promoted Hiring and recruiting with social media can raise legal complications Interviewer mistakes and how to overcome them — Staffing...

Read More

01/31/2015 – Paragon Financial Group Sees Large Increase in Food & Beverage Import Industry Financing

Posted by on January 31, 2015 in | 0 comments

FOR IMMEDIATE RELEASE Ft. Lauderdale, January 31, 2015 – Paragon Financial Group has seen a major increase in the working capital needs of their food & beverage importer clients throughout the last quarter of 2014 and into 2015. Paragon’s import clients closely followed the biggest revenue gains in US food & beverage imports (US Census Bureau) between 2013 and 2014 including wine, beer and spirits, meat products, fish, nuts, coffee and olive oil. “We have seen an increased demand for funding with many of our clients importing food from regions such as Spain, Chile, Peru, Ireland and Italy. Paragon is well positioned to fund these food & beverage import businesses. We quickly get import businesses the critical working capital they need”, said Jon Anselma, Paragon Financial’s Managing Partner. Paragon Financial’s premium meat import clients have seen the largest boost in financing needs along the entire supply chain. Last year, the United States imported around $4.8 billion, worth of premium grass-fed, hormone-free beef according to the New York Times. Anselma said, “This month the US lifted a ban on beef imports from Ireland after more than 15 years. Ireland’s beef exports to the US may total 119 million dollars this year. Readily available working capital is required for importers to take advantage of these opportunities. We already see an impact on funding requests.” Wine, beer and spirit importers have also seen a large demand for working capital. Much of the demand is from an increase in sparkling wine imports which is up 11.54 percent with overall wine imports up 2.53 percent over the same 10-month period last year, according to WorldCity analysis of the latest data. About Paragon Financial Group For over 20 years, US companies across all industries have selected Paragon Financial to meet their working capital needs. From government contractors to distribution companies, from staffing firms to manufacturers, business owners have successfully grown their companies with Paragon Financial’s invoice factoring, AR management, credit protection and purchase order financing programs. To get funded now, please call 888-271-9347 or...

Read More

Back to Top

Get Started Immediately