Invoice Factoring & Accounts Receivable Financing For Distribution Companies
- Take on Larger Deals
- Get up to 90% of your invoice advanced
- Payroll Gets Paid
- Boost Your Working Capital
- Non Recourse Client Credit Protection for volatile Retailers
- Accounts Receivable Management
- Receivable Financing
Paragon Financial was founded in 1994 to help businesses grow with alternative funding via Accounts Receiable Invoice Factoring and Purchase Order financing. When the banks do not grant business loans or offer too little, Paragon offers distribution companies working capital through invoice factoring and purchase order financing programs- all tailored for distributors and importers specific needs!
For example, you have a $400,000 order for wine, t-shirts or other products from a big-box retailer. Your company can buy the materials and add labor for of total cost of $300,000. The problem is your company does not have $300,000 in cash to fulfill the order. Using our PO Funding Program, Paragon will buy the goods for you. Then have the goods shipped to the big-box retailer. The big-box retailer then pays Paragon and you get the cash. You can get up to 90% of your receivables right now, and the rest when your clients make their final payment.
In addition, our PO Financing allows you to fund much larger deals than you would otherwise be able to. Paragon not only allows you to grow your business, but also becomes your credit department. It’s simple as that! Get started immediately by filling out the simple and quick online funding application. And remember, Paragon does not sign you on to any long-term contracts. Our agreements allow you the flexibility to factor what you want, when you want. You can pick and choose the accounts that you want to factor.
A Case Study in Purchase Order Financing and Factoring Line of Credit
One-stop shop for two services
PO Financing and Factoring Line
Client: A start-up discount retail food broker based in New York City
Situation: The Company purchases overstock food items from large suppliers at a discount and re-sells them to discount stores such as Dollar Tree. By ordering in bulk and drop-shipping to his retail customers, he avoids the capital-intensive needs of a warehouse and crew. The owner had long ties to the food industry and had recently leveraged his large network of contacts at food sellers to launch this new company on his own. He had an opportunity to work with Dole Food Company, Inc., but he needed working capital in order to pay Dole before he had payment in hand from his retail customers. The Company had great growth potential but had only just incorporated, so bank financing was not available.
The Deal: The Company chose Paragon Financial over other factors because they liked the ability to access PO and accounts receivable financing all with one company. Paragon provided a combination of $500,000 in Accounts Receivable Financing and a Purchase Order (PO) line of credit.
- As part of the PO line of credit, Paragon first wired money to Dole so they would ship product.
- Once the Company had invoiced their retail customer, Paragon began Accounts Receivable Financing.
Result: Our multi-level funding gave the Company the ability to pay suppliers and work with large enterprises such as Dole, and gave them the working capital they needed to grow the business.