The (financing)facility will enable the company to take on an oil and energy client with challenging credit.
Bradenton, FL (PRWEB) September 27, 2012
Paragon Financial Group announced that they have provided a $350,000 factoring line of credit to an area wood products corporation with headquarters in Bradenton, Florida. The facility will enable the company to take on an oil and energy client with challenging credit.
The start-up company supplies chemically treated renewable wood products to oil drill sites. This wood is used to relieve the environmental impact of the drilling process. Now that this process is proven, the demand has become so overwhelming that the company needed to look for an outside factoring company to help boost their cash flow to fulfill orders. The company is run by entrepreneurs who own and operate several other types of businesses as well.
“Perhaps the most interesting part of this deal is that the owners of this company have experience as factoring brokers themselves”, said Michael Rossi, President of Paragon Financial Group. “With this new venture they needed to work with a company that could close the deal quickly and get them the cash that they needed fast, and they called Paragon. We closed within a week for them and now they are going to bring all their factoring deals to us. We think this is quite a compliment.”
When they turned to Paragon one of their main issues was the credit worthiness of their primary client, who was only willing to extend Net 45 day terms. Paragon was able to go to bat for them and get them the credit insurance that they needed, and fast. As their sole debtor, this was a 100% concentration, and while other companies would have turned them down Paragon was able to seal the deal.
Without Paragon coming in and getting the debtor approved and factoring them quickly it would have been very difficult for the company to do this venture. With Paragon’s factoring line of credit, the company will be able to continue to grow their wood product distribution for the energy and oil industry and take on larger contracts.
About Paragon Financial Group
For over 18 years, Paragon Financial Group has provided working capital solutions for growing companies throughout the U.S. They serve small to large-size companies across a wide variety of industries through accounts receivable, invoice factoring, and purchase order financing up to $3 million per month in volume. Paragon is a leading source for receivables financing, government contract financing, payroll funding, and purchase order financing. For more information visit http://www.paragonfinancial.net.