8/05/2011 – Paragon Financial Group Grants $1,000,000 Purchase Order Financing and Accounts Receivable Factoring Facility to New York NY International Home Goods Importer
The company imports bed and bath linens from overseas and distributes the goods to discount retailers in the U.S. Many of these international orders began to grow; some ranging up to $350,000 per shipment, much different from the costs observed in 2005 when the company was first incorporated. The orders began to exceed the company’s current accounts receivable factoring line of credit with its existing factoring company, who was incapable of accommodating such large orders. They needed a factoring company that could not only factor their invoices, but provide purchase order financing and rapid service to accommodate their higher volume purchase orders.
A member of Paragon’s staff had worked with this company prior to joining Paragon and knew of the obstacles they were facing. The situation required Paragon to bring in a trade financing partner to provide letters of credit necessary to complete the deal. Paragon entered into a tri-party agreement to pay the trade financing partner when the shipments were delivered and then factor the remaining invoices.
In a recent statement from the company’s owner, “Paragon has helped me execute orders in which I would otherwise not have been able to; Paragon has been a key factor in our ability to grow.”
For over 18 years, Paragon has been a leading source in PO Financing for domestic distributors importing products from all across the globe. We also provide working capital solutions to a variety of small to larger businesses in multiple other industries through our accounts receivable factoring and purchase order financing programs.
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