How do Startups obtain Financing?
At Paragon Financial, working with startup companies is what we do. 23 years ago Paragon was a startup and we understand the unique challenges entrepreneurs face on a daily basis. The majority of entrepreneurs begin their business venture with little to no cash reserve. Not that they intended to start that way, but because they ran into unexpected costly hurdles. These unforeseen expenses place tremendous force on your ability to operate efficiently enough to stay ahead of your competition.
For many startup companies, getting a bank loan isn’t an option when their only viable asset is their open account receivables outstanding or a PO from a Fortune 1000 company or government entity. Bank’s credit guidelines are strict. In fact, in 2016 only 23% of small business loans were approved compared to over 60% of alternative lenders according to Biz2Credit Small Business Lending Index. Chances are unless you are a seasoned business with a proven track record and good corporate credit, SBA loans at a traditional bank won’t grant you a credit line. With a thin balance sheet, it’s difficult to find the funds necessary to thrive in your competitive industry.
What are the Options for Start-up Financing?
With our AR Invoice Factoring and Purchase Order Financing programs, we provide new companies with a lifeline of fresh, safe capital to stay on the frontline of your industry. If you work with creditworthy customers we can advance you up to 90% of your current outstanding invoices. We will happily wait the 45-60+ days for your creditworthy customers to pay. No longer will you have to turn down big contracts or large orders because you are undercapitalized.
What Other Funding Programs do you Offer for Start-ups?
We offer not only invoice factoring and PO purchasing programs, but we also provide:
- Payroll Funding
- Government Contract Financing
- Letters of Credit
- Supplier Guarantees for small to large companies across a wide variety of industries throughout the United States.
We have a quick and easy approval process that can be set up in as little as 3 business days. In most cases, we provide same day funding once we receive an emailed copy of your invoices and confirm them with our friendly, professional verification process.
What are the Benefits of Factoring for Startups?
- Available, affordable & effective funding options
- Factoring is not a loan
- Take on bigger orders
- Factoring with Paragon includes AR Management
- You can leverage our fulfillment and logistics expertise
- Credit protection against bankruptcy through Paragon’s Non Recourse Factoring
- Cash in your hands in as little as 24 hours
- Up to 90% advanced on your Invoices
- Pre-approve your clients credit
- 23 years servicing industries of all kinds
Are you wondering how the cost and fees stack up compared to MCA loans, bank business loans rates, SBA loan rates, other lenders and their financing packages? Use our powerful invoice factoring calculator to compare factoring rates.