Heating Repair Company, Newark New Jersey – Invoice Factoring

Posted by on May 28, 2014 in Service Provider, Success Stories | 0 comments

Paragon Financial has provided a $600,000 invoice factoring line of credit to a commercial cleaning company in Newark, New Jersey.

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07/12/2012 – Paragon Financial Group Provides $900,000 Purchase Order Financing and Invoice Factoring Line

Posted by on July 12, 2012 in | 0 comments

FOR IMMEDIATE RELEASE Fort Lauderdale, FL– July 9, 2012: Paragon Financial Group (Paragon) 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. The Miami-based Company is a leading provider of heavy equipment, such as backhoes and cranes, to the United Nations. They had an opportunity to take on a new contract with the U.N. to provide equipment to earthquake-ravaged Haiti, but needed financing to purchase the products needed. They had never factored before, and were appreciative of Paragon’s knowledge and negotiating expertise. “They had a lot of hoops to jump through with the United Nations as payer,” said Michael Rossi, President of Paragon Financial Group. “We were happy to lead the way for them.” Usually, once factoring is complete, Paragon sends domestic corporations a notice of assignment, a binder of payment that gives Paragon legal recourse should the debtor not pay. However, the U.N. is not bound by U.S. law. Paragon researched the U.N.’s documented assignment guidelines and found the right person to negotiate with, as well as the U.N.’s procurement officer in Haiti, their payment office in Denmark, and the equipment supplier in Columbia – a virtual U.N. of contacts. The U.N. also only pays by wire, and only to the name of the company on the contract. Paragon negotiated with the bank to accept a wire in the Company’s name. With Paragon’s purchase order financing and factoring line of credit, the Company will be able to purchase equipment and continue to expand their growing business. ABOUT PARAGON FINANCIAL GROUP For over 18 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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01/18/2012 – Paragon Financial Group Provides $250,000 Accounts Receivable Financing Line to Ohio Industrial Service Provider

Posted by on January 18, 2012 in | 0 comments

FOR IMMEDIATE RELEASE Ft. Lauderdale, FL, January 18, 2012: Paragon Financial Group (“Paragon”) today announced that it has provided a $250,000 accounts receivable financing facility to a Company that repairs and maintains industrial machinery. The working capital will be used to hire new employees to service larger clients and grow the Company. Located in Cleveland, Ohio, the Company has been in the industrial machinery business for over 20 years and operated as a sole proprietor. In June, 2011, they changed their corporate structure to a limited liability corporation to facilitate growth. They began taking on larger clients such as Youngstown State University, General Motors, and McDonald’s, who required 90 days to pay invoices. But to service those new accounts, the Company had to take on more employees, increasing their payroll and benefits costs which had to be paid immediately. In a cash crunch, they sought traditional bank financing. Since they had only just incorporated, commercial banks considered them a startup and were reluctant to lend to a “new” corporation. The Company learned about Paragon Financial Group and accounts receivable financing through their broker. Paragon was able to provide the company with the additional working capital they needed to cover the additional overhead costs and continue to grow their business. Paragon’s expertise in accounts receivable financing gave the company the comfort of knowing they had a financing partner they could count on. “Companies like these are in a tough situation – most don’t have enough assets. They need working capital to take on new clients and grow, but banks generally won’t lend to startups unless they have personal contacts or personal finances they can collateralize with a strong personal guarantee,” said Michael Rossi, President of Paragon Financial Group. “We understand the financing needs of companies in all lifecycle stages, particularly one stuck in a Catch-22 such as this.” ABOUT PARAGON FINANCIAL GROUP For over 18 years, Paragon has been providing working capital solutions for growing companies throughout the US.  They service a wide variety of small to large-size businesses in many industries through accounts receivable factoring and purchase order financing programs.  Paragon is a leading source for receivables financing, government contract financing, payroll funding, and purchase order...

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Factoring Financing – How Food Service Providers Can Benefit From Factoring

Posted by on July 28, 2011 in | 0 comments

In this article, we will discuss how invoice factoring can be a great way for companies in the food service provider industry can get much needed cash flow in a matter of days rather then waiting the 30-60 days it generally takes for a customer to pay their invoice. Invoice billing is a great service to the client, but often puts a strain on businesses. Companies have to wait 1-2 months before they are paid for services that they have provided that amount of time ago. They have already had to pay their employees and purchase supplies necessary to complete the job, depleting the amount of cash they have available. Because they have yet to be paid, cash flow problems may arise. Factoring financing is a way for food service providers, such as catering or food distribution companies, to get paid on the invoices upfront, rather then later. Factoring Financing For Food Service Providers Would Work Like This: The food service provider would complete whatever business they have with their client, whether it be providing a service, delivering a product, etc. They would then invoice the client The company would sell that invoice to a factoring company The Factor, if they choose to (this will largely depend on the credit worthiness of the client), will offer between 70% and 90% of the value of the invoice.  They will pay these monies in cash. The company has the money they need for whatever purposes they want to spend it. The process is pretty simple. A food service provider, for example, a caterer, would complete a job and then sell the invoice to a third party, the Factor. As long as the business’ client has a good credit history, it should not be a problem finding a factor willing to work with them. Not only is the process is simple, it is fast. After the initial set-up of about 7-9 days, a business will be able to obtain money in as little as 24 hours. This allows them to quickly receive money for their invoices and not have to wait around 30-60 days, the time available for their customer to pay. When a company is tight on cash and can not afford to wait until their clients pay their invoices, factoring financing can be an excellent option. It is important to note, however, that if a business has clients with bad credit, it will not be possible for them to use this sort of financing. Because a Factor can not get paid unless they are able to collect on the invoices, they will not be willing to work with businesses whose clients are bad credit risks. This is largely because they can’t be confident that they will be able to recoup the money they paid for the invoices. Any company considering this option must keep this in mind because their client’s credit worthiness can make or break any potential...

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How Receivables Financing Can Help Service Providers

Posted by on July 28, 2011 in | 0 comments

Receivables financing can be an excellent way for service providers to raise capital for there businesses.  Most business owners understand the importance of having good cash flow.  Without adequate money coming in, it is difficult for a company to pay their bills or keep operations going. However, generating capital and keeping it flowing can sometimes be difficult.  If a service provider invoices their clients it may take between 30 and 90 days before they receive payment for jobs they have already completed.  This can put a strain on a business.  Without an adequate amount of capital, they will be unable to meet their own obligations. The majority of businesses that don’t have enough capital to pay their bills will be forced to take out a bank loan or line of credit. The same is true for companies that are interested in expanding or growing. Unfortunately, bank financing is not possible for everyone. A business that doesn’t have stellar credit, already has too much debt or hasn’t been in business very long may find it very difficult (if not impossible) to obtain a loan. When this is the case, there are often very few options. Fortunately, one option that it is available to most service providers is receivables financing.  Receivables financing allows companies to get the money they need without having to qualify for a loan and take on more debt. Instead, they sell their receivables at a discounted rate, often times between 70% and 90%, to a factoring company.   This company will pay cash for the invoices and then collect them from the businesses’ clients.  The same terms that the customer originally agreed to will be those accepted by the factor.  After the factor has received the monies for the invoices, they will return them to the company who originally owned them.  The factor is then paid a fee, typically between 1.5% and 3.5%. There are several advantages to receivables financing besides a business getting much needed capital.  A factoring service can also act as a collection agency of sorts. They will go after a company’s clients if they are late pays. This can be great for small businesses that do not have a collections department.  Factoring receivables is also cheaper than a traditional bank loan. Companies only pay, as stated above, between 1.5% and 3.5% for the luxury of being able to use the factor’s money. This is generally cheaper then a business loan. Factoring also allows businesses to work with clients and fulfill orders that they might not only be able to afford. In most cases, as long as their clients have good credit, then receivables financing is an option for businesses. Receivables financing can be very advantageous for service providers. It allows them to get their hands on money right way without the hassle or risk of bank financing....

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