03/30/2012 – Paragon Financial Group Helps Minneapolis Energy Company Fund Payroll with $250,000 Invoice Factoring Facility

FOR IMMEDIATE RELEASE

Fort Lauderdale, FL – March 30, 2012: Paragon Financial Group (Paragon) announced that it provided a $250,000 invoice factoring line of credit to a forward-thinking energy service company (Company) headquartered in Minneapolis, MN. The facility will provide working capital to fund the Company’s increasing payroll needs.

The three-year-old Company specializes in privately-owned commercial and residential renewable energy systems, providing design, engineering, installation, project management, equipment procurement and commissioning of the best alternative energy system for a given site. They offer turnkey services across the full range of renewable energy systems: wind, solar, biomass, and hydrogen.

Recently, the Company signed a contract with a new client to engineer and construct a wind turbine field. While representing a large growth opportunity, the client also represented a 100% sales concentration, required extended billing and payment terms and as a young company itself, had a limited financial history.

The contractual billing terms stipulated that the Company could only submit sales invoices at quarter end which created 90 days of unbilled receivables. Additionally, the Company had to wait for another 45 to 60 days for the invoice to receive the payment according to the payment terms. This caused a significant cash slow crunch as the Company had to meet payroll expense for dozens of its employees working on the project while waiting to receive the payment for up to 120 days. Their broker recommended they call Paragon Financial.

“We were excited to work with the Company as alternative energy is an important and growing segment of the economy. But first we had to clear a few hurdles to get credit approval for the Company’s client which had very little public financial history and didn’t want to release their financial statements,” said Michael Rossi, President of Paragon Financial Group.

Paragon patiently worked with the Company and its client to obtain financial information for credit approval. “We were very pleased to get an approval for a good portion of their billings to the client. Other factoring companies hadn’t been able to get any approvals for them,” Rossi explained.

Because this deal resulted in a 100 percent sales concentration, the next hurdle to clear was getting iron-clad written verification from the client that the work had been done and they would pay Paragon.

“Other factors wouldn’t touch a 100 percent concentration deal, especially with such a large amount on the line,” Rossi said. “But Paragon worked through the challenges and got the deal done.”

With invoice factoring and Paragon’s factoring line of credit, the Company now has the working capital they need to meet payroll and has a reliable, stable source of funding to be able to take advantage of new opportunities to grow. They’re moving forward with their new client, designing and building the new wind turbine field.

ABOUT PARAGON FINANCIAL GROUP
For over 18 years, Paragon Financial Group has provided working capital solutions for growing companies throughout the US. They serve small to large-size companies across a wide variety of industries through accounts receivable, invoice factoring, and PO financing up to $3 million per month in volume. Paragon is a leading source of receivables financing, government contract financing, payroll funding, and purchase order financing. For more information visit www.paragonfinancial.net.

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