2. What is Invoice Factoring?
Invoice factoring is when a company sells their accounts
receivables in order to receive immediate cash payment
up to 95% of the invoice amount. This gives the
company quick working capital it needs to fund payroll,
buy raw material or other financial needs.
3. Fast and Insured Working Capital
Invoice factoring is not a bank loan. The accounts
receivables are sold to the factoring company rather than
offered as collateral. Plus at Paragon Financial we
include credit protection. If your client goes bankrupt or
insolvent you are protected.
4. Your Collections Department
This process places the time, cost, and effort of collection
into the hands of the factoring company. Your company
receives the cash it needs, when it needs it, so that you
may best manage your business.
5. Good Alternative to Bank Loans
Invoice factoring can be a great option for companies that
need money quickly, but who aren’t able to secure a
conventional, bank loan. Paragon works with
companies that have IRS tax issues, client
concentration, start-ups, turnarounds, bank exits and
more.
6. Due Diligence
A good factoring company will research the credit history
and their AR aging report of the seller’s customers prior
to purchasing the invoices. They will want to be confident
that these companies have a history of paying their bills.
7. What’s Next?
For more information on invoice factoring contact Paragon
Financial Group today at 888.400.5931 or visit us at:
http://www.paragonfinancial.net/how-it-works/invoice-
factoring