10/30/15 – Paragon Financial Group Announces 3rd Quarter Increase in Spirits Industry Funding Deals

Posted by on October 30, 2015 in | Comments Off on 10/30/15 – Paragon Financial Group Announces 3rd Quarter Increase in Spirits Industry Funding Deals

MIAMI, FL– Paragon Financial Group announces a 15% increase in accounts receivable factoring and purchase order financing services for their U.S. spirit industry import and distribution clients in the 3rd quarter of 2015 as compared to 2nd quarter 2015. Paragon Financial’s U.S. spirit suppliers and importers are pointing to demand for premium spirits and overall market growth for their increase working capital needs. Industry wide, supplier sales for the U.S. distilled spirits industry were up 4% to $23.1bn last year according to the Distilled Spirits Council. Along with US revenues for bourbon and Tennessee whiskey rising by 9.6% to $2.7bn last year according to the Distilled Spirits Council. Over the past six years, from 2009 to 2014, annual revenue has increased by 46.7 percent. “Consumers are also becoming more discerning, creating an increase in demand for premium alcohol and the many ways to enjoy it, hence the rise of the cocktail industry” said Alexandre Rodrigues, global head of public relations for World Class and Diageo Reserve Brands. Paragon Financial’s National Sales Manager, Chris Curtin, says, “We are seeing the impact of exponential growth in the high-end spirits market and the overall spirit sector with the increased need for quick and easy access to working capital. Only 21 percent of small businesses get approved for traditional commercial finance through bank lending. At Paragon Financial we provide the funding spirit suppliers and importers need through a streamlined, easy online process that allows our clients to take advantage of opportunities without delay.” 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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06/3/2013 – Paragon Financial Sees Increase in Purchase Order Financing Associated with Increase in US International Trade

Posted by on June 4, 2013 in | 0 comments

FOR IMMEDIATE RELEASE Ft. Lauderdale, FL – June 4, 2013: Paragon Financial Group (“Paragon”) sees exponential growth in purchase order financing demand across key industries. The United States Census Bureau’s May 2013 report matches this trend with nation’s international trade deficit in goods and services decreased to $38.8 billion in March from $43.6 billion (revised) in February, as imports decreased more than exports. Purchase order financing (PO financing or PO funding) provides an advance to a company’s suppliers against a purchase order from a qualified customer so that the company can deliver the product to its customers on time and with the quality required. Paragon Financial’s national sales manager, Chris Curtin, states, “We’ve seen rapid growth in purchase order and vendor guarantees. I believe it reflects growth of finished goods into the US.” According to the US Bureau of Economic Analysis March exports of advanced technology products were the highest on record, climbing $4.9 billion to $27.9 billion. This is a 21.5% increase from the February level of $23.0 billion. The greatest increases came from gains in trade in the aerospace group ($1.8 billion) where we currently have a trade surplus of $5.7 billion. Exports in the information and communications group increased $1.3 billion, while exports in the nuclear technology group increased $0.6 billion. PO financing provides the cash that aerospace and technology businesses need to both fill their customers’ orders and expand their business at the same time. It is particularly useful for companies that cannot obtain traditional funding based on their own financial condition or balance sheet, for example, startups, turnarounds, and others whose balance sheets cannot support traditional banking relationships. “Our purchase order funding packages have been working well for our manufacturers, importers, distributors, wholesales and exporter clients in 2013. Companies that sell physical goods often find purchase order funding a great option in obtaining working capital for rapid growth”, says Curtin. ABOUT PARAGON FINANCIAL GROUP For over 19 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. For more information visit...

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Small Business Financing for Government Contracts

Posted by on October 9, 2012 in | 0 comments

By Jon Anselma, Managing Partner, Paragon Financial Group, Inc. In today’s economic environment, it is difficult for small businesses to obtain traditional bank financing. Especially when you’re a growing company. Imagine having the financial capability to bid on large government contracts. With the proper financing, you can leverage a small amount of capital into fulfilling large government contracts. There are numerous government contracts awarded for all different types of products and services. A common scenario is the government is seeking goods such as light bulbs. A small business can’t compete against the big manufacturers such as Sylvania, however, often times the government is seeking to purchase from a small business in what is known as a “set aside” contract. Let’s assume that the contract is for 10,000 light bulbs. You’ve done your research and know you can buy them from Sylvania (for example only) for $75,000 and put in your contract bid for $100,000. You get awarded the contract and high-five yourself for the profit you will be making. Unfortunately, you find out that Sylvania won’t give you extended payment terms and wants to be prepaid before shipping the product. As a small business, you don’t have $75,000 for the prepayment and risk losing the contract. What’s the solution? There is what’s called Purchase Order Financing and also Factoring. Purchase order financing provides monies or guarantees in order to obtain product, and factoring provides money immediately upon fulfilling the order, based on the invoice to the government that will be paid 30 days later. In the above scenario, there are a few ways to finance the transaction depending on the manufacturer/supplier’s appetite. Goods must always be finished and presold with purchase order financing and delivered directly from your supplier to your customer. A finance company with excellent credit can guarantee your supplier they will get paid. There are three common types of guarantees which are applicable only for goods that are drop shipped directly from the supplier to your customer or sorted/repackaged in a public warehouse: Finance company and supplier sign an agreement providing for payment to be made by finance company on your behalf when the goods are ready to be shipped. Finance company guarantees payment to the supplier upon shipment to or receipt of goods to your customer. Finance company guarantees to send the supplier the funds generated from the factoring of the invoices related to that order. For example, the government receives the light bulbs, invoices are factored, and proceeds sent to supplier. Any remaining factoring proceeds are sent to you. In each scenario, the invoice generated from the sale and delivery of the light bulbs must be factored. By factoring the invoice, the finance company pays itself back for advancing funds to Sylvania. When the invoice is paid 30 days later (depending on the payment terms), that payment which has been assigned, will be sent directly to the factor. A factoring company typically advances 80% of the invoice amount. In this scenario, the invoice to the government is $100,000. Therefore, there is up to $80,000 available to finance the purchase order to Sylvania. If the cost is higher than the 80% advance, you would have to make up the difference. However, in this Sylvania scenario, you would actually be able to fulfill the whole contract without any money out of pocket. Once the invoice is paid, the balance of the 80% advance, called the reserve, is disbursed to you minus a small fee. Many government agencies want what is called a Financial Capabilities Letter advising them of your financial capability or backing. As a small...

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California TV Food Entertainer – Purchase Order Financing and Invoice Factoring

Posted by on August 6, 2012 in Food and Entertainment, Success Stories | 0 comments

Getting cash flow out of a deep freeze Purchase Order Finance and Invoice Factoring Line Client: A Home Shopping Network (HSN) chef and his gourmet frozen food company Industry: Food and Entertainment Situation: As one of HSN’s popular hosts, the Chef was offered an exclusive, one-hour cooking show during which he sold his gourmet frozen foods and cookbook. Orders poured in and he experienced fast, exponential growth. What’s more, he expects business to increase ten-fold over the next five years. But HSN, like other televised home shopping networks, requires its sellers to have inventory on hand to quickly fill customer orders, so the Chef needed working capital to produce the frozen foods and cookbook. Additionally, it took a long time to process payment from HSN orders. A broker shopped the deal to several factoring companies, which turned him down due to the complexity of the deal. Paragon Financial was not afraid to say yes and tackled the extra work head-on. The Challenges: When the Chef makes a sale on HSN it’s considered on consignment because some product may be returned. HSN then deducts returns on his Company’s invoices, so the amount invoiced was not the actual amount paid. Most factors won’t buy invoices in situations where liberal right-of-return policies exist, but Paragon’s underwriting experts went to bat and found a way to get the deal done in a way that was comfortable for everyone. We had to find a method to calculate the probable payment from HSN. We developed a formula based on orders logged into HSN’s online EDI system and shipping receipts from BHK, factoring in a dilution percentage derived from the past history of returns. A second challenge was finding a way to work with many small invoices that are typical in retail and that make data entry very labor intensive. We found a way to streamline the work process by downloading HSN invoices from their online EDI system into an Excel spreadsheet, then uploading them to our software, saving our client time and money. The Deal: A $500,000 invoice factoring line of credit. Result: With factoring in place, the Chef can take his gourmet food business as far, and grow as fast, as he wants. 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...

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Miami Heavy Equipment Company – Purchase Order Financing – Invoice Factoring

Posted by on July 12, 2012 in Heavy Equipment, Success Stories | 0 comments

Paragon Financial Group announced that it has provided a $900,000 purchase order financing and invoice factoring line of credit deal to a large equipment reseller. The financing will enable the Company to take on global contracts and expand. Read More

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