PO and AR financing for Olive Oil Importers

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financing olive oil importersFrom Sacramento, California to Philadelphia, Pennsylvania, the U.S. has an insatiable appetite for oil olive.   And why not, the oil has no cholesterol, is high in monounsaturated fat, and high in antioxidants.  In fact, U.S. consumers devour 38.4% of the world’s imported olive oil.  They rank 3rd in terms of overall consumption behind just Italy and Spain.   Organic olive oil is even one of the top US organic imports.

U.S. olive oil imports is big business and continues to rise year-to-year.  Imports have doubled since 1997 and with the retail market consisting of 59% extra virgin, 29% olive oil and 12% light-tasting.  At Paragon we actively help olive oil importers and distributors succeed through purchase order financing, accounts receivable financing, AR management and credit protection.   Give us a call at 888-400-5931 today, fill-out the form to the right or chat with us.

 

 

IRS Factoring of Receivables Audit Techniques Guide

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tax factoring of receivablesSo, what is the IRS’ take on factoring accounts receivables?   There is a page right on the IRS’ web site that contains a thorough overview of factoring receivables. It’s informative and worth a look!

Factoring of Receivables Audit Techniques Guide

The Many Benefits of Accounts Receivable Financing

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Receivable Financing BenefitsHas your small business been searching for working capital solutions in the start of 2015?   Bank loans?  Personal credit cards?  Help from family and friends?   No way, no how.   Most likely, none of these are viable solutions for your business.   Accounts receivable financing is a surprisingly effective and efficient way to get your business the cash flow it needs.  Working capital that can be in your hands in as little as 24 hours.

Receivable Financing Benefits:

  • Up to 95% advanced in as little as 24 hours
  • We become your Credit Department with a soft touch
  • Payroll Financing
  • Personal credit issues are not a focus for approval
  • Credit protection against bankruptcy and insolvency
  • IRS tax liens and other IRS issues can often be worked around

Target Clients

  • Startups, Turndowns, Bank Exiting and or underperforming banking relationships
  • We look at our Client’s customer’s ability to pay, not your personal credit
  • Rapidly Growing Client with sales of $25,000 – $3,000,000 per month
  • All Industries

Paragon Financial has been providing receivable financing, purchase order financing with credit protection and AR management for over 20 years. We work closely with you to provide a working capital solution that fits your companies needs. Give us a call at 888-400-5931 today, fill-out the form to the right or chat with us.

Account Receivables Factoring for Machine Shops

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machine-shop-ar-factoringMachine shops have come a long way since their Industrial Revolution beginnings. Today we are talking about precision automotive, aerospace, heavy truck, construction, medical and die/mold machining that must meet the demands of today’s global manufacturing economy.   From Columbus Ohio to Sacramento California the industry employs over 78,000 people, 3,198 companies with over 12.7 billion dollars in shipments.  For job shops and contract manufacturers understanding the availability of working capital is essential to quickly adapt to today’s economic pressures.

Account receivables factoring give machine shops the ability to gain working capital fast and efficiently. Even companies that have personal credit issues, tax liens, start-ups, client concentration and other challenging funding issues can qualify for receivables financing. This type of funding allows a company to turn their outstanding invoices into working capital in as little as 24 hours.   Paragon Financial is one of the few factoring companies that offer credit protection reducing your risk across the board.

Tap into Paragon’s 20 years of experience providing machine shops working capital through accounts receivable and purchase order financing with credit protection and AR management. Give us a call at 888-400-5931 today, fill-out the form to the right or chat with us.

Working Capital with IRS Liens without SBA Loans

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IRS tax lien ar financingIn 1817, Benjamin Franklin famously wrote. “In this world nothing can be said to be certain, except death and taxes.” Your epic battle has ended in defeat. Despite your efforts to avoid it, the IRS has won the day and now there is a tax lien attached to your credit report. How will this affect your ability to succeed going forward? Where can you turn for additional small business working capital? Banks would seem to be off limits as they notoriously look at credit scores to make their loan decisions. Your best option would appear to be alternative forms of financing.

One option would be turning to government programs for help, with the Small Business Administration (SBA) being the most obvious source of assistance. The SBA does not make direct loans to the public. Rather, they partner with banks, guaranteeing a percentage of the loan or line of credit to offset the higher risk of lending to small businesses. This improves the likelihood of creditworthy companies to be approved, but banks generally do not lend to businesses saddled with IRS tax liens. They must accept the loan by their own lending criteria before they will agree to participate in an SBA guaranteed loan. Most banks look at both the financial situation of the company and its owners to make a loan decision. Thus, personal tax complications will most likely prevent small businesses from using SBA financing.

Are there other avenues for future working capital needs? Alternative funding sources are available outside of the traditional arena which can provide small business owners the opportunity to continue on their path to success despite IRS problems. Working capital funding can be obtained through the company’s actual operations, such as purchase order funding, invoice factoring and accounts receivable factoring. All of these funding sources are based more on your customers’ financial strength rather than personal or business creditworthiness. Paragon works with the IRS and creates subordination agreements to successfully fund small businesses, enabling us to meet your funding needs, tax problems notwithstanding.

Paragon Financial can advance up to 95% of purchase orders or invoices to enable your business to fulfill large orders. The funds can be accessed as a single transaction or a line of credit to fund multiple orders. Funding is based on the strength of your customers, which can help to offset the obstacles created by your small business status. Accounts Receivable factoring is also available to eliminate the wait for collections at the end of the transaction. Paragon also offers credit protection to avoid future collection losses.

At Paragon Financial we have been funding for over 20 years. We understand your specific industry needs. Give us a call at 888-271-9347 today, fill-out the form to the right or chat with us.

Registering to be a Government Contractor

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Contractor financingAt Paragon Financial, we have been funding government contractors for over 20 years.  We are one of the few factoring companies that will work with the government and we do it on the federal, state and local levels.  Other factoring and finance companies simply don’t have the resources and knowledge in order to successfully navigate through the government red tape.      We understand the complexities of FAR and leverage the Department of Defense’s iRapt.

Federal, state and local governments offer you the opportunity to sell billions of dollars worth of products and services. Many government agencies require that some percentage of their procurements be set aside for small businesses.  Click on the link below from the SBA and follow these easy steps to certify your business as small and obtain the registrations you need to begin bidding on government proposals.

https://www.sba.gov/content/register-government-contracting

Invoice Factoring and PO Funding For Washington DC Businesses

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Washington DC factoringInvoice factoring and PO funding for Washington DC government contractors is available today.   Typically the factoring of government receivables is not offered by banks and factoring companies.  With 20 years of experience, Paragon Financial understands how to work through the government bureaucracy of local, state and federal agencies.   We possess deep knowledge of the Federal Acquisition Regulation (FAR) and being paid through programs like iRAPT formerly WAWF.

Paragon’s DC government contract clients receive benefits from our Financial Capability Certification Program.  This program provides customers with contingent financing commitments so that they can demonstrate to U.S. Government contracting officers that they possess the financial wherewithal to execute on contract awards. This results in our customers winning more, and larger, contract awards.

Paragon Financial is registered in The System for Award Management (SAM) and is compliant with the Assignment of Claims Act. Paragon Financial has factored federal government receivables from most departments and agencies, as well as working closely with many of the largest Prime Contractors and the DOD.

Tap into Paragon’s 20 years of experience providing Washington DC government contractors working capital through accounts receivable and purchase order financing with credit protection and AR management.   Give us a call at 202-821-4799 today, fill-out the form to the right or chat with us.

Are Bank Loans Available Again?

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Business Bank LoansFor five years, U.S. consumers have been undergoing a massive debt reduction: Paying off credit cards, paring back spending and building up funds for a rainy day. Investors, though, have been looking to see whether Wall Street banks are lending for a positive sign that the economic recovery is picking up steam.

Last week, investors got a sign—though not quite as positive as they may have hoped. For banks like JPMorgan Chase and Bank of America—which each reported “core” loan growth in the single-digit percent range—the uptick in borrowing came from high net-worth clients in their brokerages, not from the consumer banks.

“Households have focused on improving their financial position, even with historically low interest rates,” said Marty Mosby, director of bank equity strategies at Vinings Sparks Asset Management.

Loan balances serve as a barometer of consumer sentiment: It takes confidence in one’s job security and personal finances to borrow for a big purchase or a new venture. Data from the third quarter showed wealthier clients tended to have more of that confidence.

At JPMorgan, consumer loan balances were $391 billion in the third quarter—barely budging from the same quarter a year ago, while average loans in the bank’s asset management unit rose 15.4 percent.

Bank of America reported consumer loans down 3.5 percent from the same period a year ago. While some of the decrease is attributed to legacy loans the bank is allowing to run off, Wells Fargo analyst Matt Burnell noted BofA’s “challenged” growth with “weakness across commercial loans and most consumer categories.”

Meanwhile, Bank of America’s Merrill Lynch Wealth Management reported loan growth up 8 percent.

The results of other banks are roughly in line with this trend, though it’s not as apples-to-apples:Citigroup’s data only reflect consumer borrowing, while Morgan Stanley’s only reflect that of non-retail brokerage clients.Wells Fargo’s brokerage is still in its early stages of growth.

Federal Reserve data available on a weekly basis have shown a strong pickup in consumer loans— 6-plus percent growth over 2013— since June. The data, however, don’t reflect the disparity between borrowing bases. At a conference in Boston Friday, Fed Chair Janet Yellen said, “The extent of and continuing increase in inequality in the United States greatly concern me.”

Still, even as the banking industry awaits a broad-based recovery for consumers, firms saw more trading activity, higher earnings on deal advisory and a swelling base of fee-earning client assets. With loan growth for everyday consumers, they’d be firing on all cylinders.

Kayla Tausche, http://www.cnbc.com/id/102097439

Notification Invoice Factoring Can Help Strengthen Your Relationship with Your Customers

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Accounts Receivable non-notification factoringIs it good business to let your customers know that you are utilizing invoice factoring to extract the working capital from your accounts receivables, and that they should pay the invoice to your factoring firm? We 100% believe it is.

Some business owners are concerned about letting their customers know that they have factored their accounts receivables. These owners may feel that, “If my customers find out that I’m factoring my receivables, they might think that my company is having financial problems.”

In our experience, this turns out not to be the case. First, customers with strong accounts payable departments understand that their vendors will be factoring their invoices. That’s especially true in industries where factoring has been traditional for many years. These customers understand that invoice factoring provides cash flow for working capital needs.

Indeed, when done properly, notification invoice factoring enables your factoring provider to become part of your team – your partner – in working with and servicing your customers.

Total Accounts Receivable (AR) Management

At Paragon Financial, we have a long tradition of working well with our clients’ customers.  We provide a full range of services to our clients that we call the Paragon Total AR Program. That includes managing the credit protection, collections and cash advances for clients receiving payment to us on their behalf from many of the largest and most well-run companies such as Wal-Mart, Comcast, Neiman-Marcus, Time-Warner, and AT&T, to name just a few.

In providing this full service AR management, Paragon stands out as a superior service provider. For example, fewer than 20% of invoice factoring firms utilize credit insurance. That’s because such insurance is expensive and many factors do not meet the stringent requirements of the credit insurance providers. Even more important, as an entrepreneurial firm like our clients, we understand that credit protection and safety will result in the best likelihood of long-term survival and growth.

Throughout our 20-year history, Paragon has been able to develop strong relationships with our clients’ customers – indeed, to have helped strengthen the underlying relationships between our client and their customers.  Paragon’s famous “soft touch” with account debtors (our client’s customers) is known throughout multiple industries.

We deal with you and your clients in a courteous and professional manner.  Paragon Financial is famous for its soft touch with ‘account debtors’.  We verify that the invoices are in your client’s accounts payable system with the proper documentation, so that they will be paid in a timely manner. In fact, most of our clients find that, in addition to the main benefits of increased cash flow and credit protection, their customers tend to pay faster because billing and entry errors are reduced.

Furthermore, we do not act as a collection agency that hounds companies for bad debts. We manage, protect and advance only against solid invoices from reputable and creditworthy companies. It’s as simple as this: If we do not make your customers happy, we do not get to manage your accounts receivable the next time.

Bottom Line

Notification factoring can add a positive component to your relationship with your customers. A highly reputable factoring firm can offer benefits to both you and your customers. When your factoring firm does its job efficiently and with respect for your customers, notification can strengthen your relationship with them. Working with such a factoring firm, you will benefit from that stronger relationship.

Financing for Big-Box Retailer Suppliers

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vendor Retailer financingHow many entrepreneurs watch Shark Tank and wish they could go from rags to riches overnight?  The sharks dangle their deep pockets and connections with the “Big Box” retailers as the prize everyone wants to attain.  Clearly, a partnership with a “shark” provides the dream contacts and funding every entrepreneur longs for.  Yet, the vast majority of small business owners grow by their own devices.  Contacts with the giants, such as Walmart, Target, Sears, Costco. Kohl’s, Staples, Office Depot. Toys “R” Us and Michael’s  are more often established by persistently marketing products or lines of products to corporate buyers.  Assuming the contact is successful, huge purchase orders can ensue at a lightening pace.

The step up from modest production to huge purchase orders can represent a considerable challenge for a growing business.  Owners must adapt overnight from running  a small business to managing a medium sized business.  They find themselves needing to purchase more raw materials, hire additional staff and purchase equipment or find a way to outsource their production.  The need for funding can become enormous as soon as the contract is signed with the “big box” retailer.  Often, these suppliers are in a startup stage and have not established credibility to borrow such significant sums from traditional bank financing.  They are essentially moving from one phase of business development to the next overnight but are not able to show traditional lenders the track record required to borrow such significant sums.

Purchase order funding can offer an appropriate source of working capital for the small business to make the leap into larger transactions.  Money is advanced based on either a single or multiple purchase orders and advances are made based on the creditworthiness of the purchaser rather than the supplier.  Suppliers without established credit or with credit issues (sometimes even IRS issues) can receive working capital up front to fulfill their newly acquired orders.

Accounts Receivables from large retailers such as Best Buy, JC Penney, Books-A-Million, Bed Bath and Beyond, Old Navy, Petsmart and other superstores can be notoriously slow.  Up front terms of 60 days or more are common.  This lag in collections can cause a serious deficit in liquidity, especially if additional orders are being received.  Pressure to reinvest in future sales creates a serious need for working capital.

Accounts receivable factoring can provide an additional source of working capital.   The factoring company purchases the actual receivables from the supplier and advances a percentage of funds up front (up to 95% of the balance) based on the strength of the retailer, rather than the supplier.  The availability of the funds can fuel the next round of inventory production, rather than waiting for the collection process to take place.

Paragon Financial specializes in managing liquidity in today’s competitive environment. We offer 20 years of experience providing funding for working capital needs by advancing on accounts receivable and purchase orders.   Give us a call at 888-400-5931 today, fill-out the form to the right or chat with us.