09/12/2013 – Paragon Financial Group Seeing Federal Government Sequestration Slow Down Payments to their Government Contractor Clients
FOR IMMEDIATE RELEASE
Ft. Lauderdale, FL – September 12, 2013: Paragon Financial Group, Inc. (“Paragon Financial”) is seeing the Federal Government sequester having a direct impact on their clients and prospects. Nearly all of Paragon Financial’s government contractors are experiencing a slow-down in payments from the Federal Government increasing the need for receivable financing and purchase order factoring programs.
“Even with companies winning contracts there is frequently a delay in receiving the cash from the contract,” said ML Mackey, CEO and co-founder, Beacon Interactive Systems in a Federal News Radio interview in the start of the 4th quarter 2013.
“That means you have to stay in a holding pattern before you can actually start executing on work. That’s a challenge for everyone across the industrial base, but it’s a disproportionate and really terrible challenge for small business, because we have much smaller pockets. We have much less ability to weather decreased cash flow, but also the planning for your team. You have to hold your team together if you’re going to effectively execute. We can’t just cut staff and then pick them back up again when the contract comes. The way a small business is extremely effective and innovative is by keeping their team in good operational condition. I’ve watched a lot of my colleagues either cutting employees or just closing their doors because they can’t wait it out, hoping they’ll be under contract by the end of the year.”
These delays have had a direct impact on Paragon Financial’s small business contractors. Paragon Financial has been able to help navigate their clients through the cash flow problems with their government contractor receivable financing and purchase order financing programs. “Our clients in the government contractor segment are being squeezed financially because of longer pay times and increased competition on contracts resulting in working capital issues. We are also being approached by SME’s who now need receivable financing because of slower payments,” said Chris Curtin, National Sales Manager of Paragon Financial.
ABOUT PARAGON FINANCIAL GROUP
For almost 20 years, Paragon Financial Group has provided working capital solutions for growing companies throughout the U.S. They serve small to medium-size companies across a wide variety of industries through accounts receivable, invoice factoring and purchase order financing up to $3 million per month in sales volume. Paragon Financial is a leading source for receivables financing, government contract financing, payroll funding, and purchase order financing. For more information, visit www.paragonfinancial.net.