NewswireToday - /newswire/ -
Ft Lauderdale, FL, United States, 2011/12/15 - Financing growth through factoring - client: a Raleigh, NC area veteran-owned staffing agency providing unarmed security personnel. industry: security guard staffing - ParagonFinancial.net.
Situation: The Company had won a $2 million one year self-renewing contract from the U.S. government to provide security personnel for the Mine Health and Safety Academy. These personnel would require high end security clearance, which meant higher pay, putting pressure on the Company’s cash flow. Their bank line of credit provided enough funding for their other endeavors but this project required all new financing, which the bank was not willing to provide. Without financing, the Company would have to pass on the contract and the chance for growth.
Solution: Paragon provided Accounts Receivable Financing with a factoring line of $600,000.
The Company had never factored before, so Paragon worked with them step by step to ensure they were comfortable with the process.
Paragon worked with the Company’s bank to subordinate their lien on this contract, negotiating an agreement that was acceptable to both parties.
Paragon took care of all the red tape for the Company, working with the government contracting and disbursing offices to complete the proper paperwork and ensure the contract was officially amended.
Result: The North Carolina Company received the necessary funding to take on the contract and expand. And, they now have the factoring foundation in place for any other contract they pursue in the future.
About Paragon Financial Group
For over 17 years, Paragon (paragonfinancial.net) has been working with banks to provide working capital solutions for growing companies throughout the US. We service a wide variety of small to large-size businesses in many industries through our accounts receivable factoring and purchase order financing programs. Paragon is a leading source for invoice factoring, government contract financing, payroll funding, and purchase order financing.