The company initially began as a real estate investment company in Jacksonville, Florida, but has seen its fair share of ups and downs over the last several years with the collapse of the real estate market. To offset those ongoing struggles, the owner of the company used his status as a minority vendor to successfully bid on a government contract in hopes of stimulating company growth. The owner contacted Paragon through our website to inquire about factoring and purchase order funding for the government contract he won with the Florida Department of Health. He needed assistance funding purchase orders for child car seats that were to be shipped to various children’s hospitals that were mandated by the Florida Department of Health.
Paragon has eighteen years worth of experienced in dealing with government contracts however this particular transaction was complicated. The manufacturing of the car seats included the use of seven different suppliers. Timing, terms, and pricing had to be negotiated with all seven. And all seven needed full payment before the products were to be shipped. The credit and lack of experience in the industry for the client was an issue. Logistics were further complicated when the products were shipped to multiple hospitals throughout Florida. Purchase order financing had to be set up in order to handle the demands of the seven suppliers. Once the products were delivered, an invoice factoring line was included on the back end to pay off the PO funding. Paragon provided two separate business financing facilities to get the deal funded.
Managing Partner at Paragon, Jon Anselma, states, “Government contract financing can be a very effective way for companies to fund the operational costs associated with doing business with the Federal government. It can be a great feeling to be awarded a government contract, but it can also be quite expensive to complete assigned jobs. In this case, the company was struggling to cover the operational costs of this particular project, so we took a big risk by fronting all of the money beforehand to get this deal done and wait for shipment to be completed before we were reimbursed.”
For over seventeen years, Paragon Financial has been a leading source in government contract financing and PO Financing. We provide Letters of Credit, Supplier Guarantees, and are a CCR government registered member. Paragon is also a factoring firm that works with companies dealing with Federal, State, and local municipalities. Paragon provides working capital solutions to a variety of small to larger businesses in a wide variety of industries through our accounts receivable factoring and purchase order financing programs.
For additional information, contact:
Paragon Financial Group
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Paragon Financial has the initiative to afford growing businesses an alternative to conventional bank financing. When banks are unwilling to provide financing, Paragon can promptly offer a steady stream of cash through the factoring of accounts receivables.
Over the past 15 years, Paragon Financial has combined a strong management team with steadfast customer service to become an acknowledged leader in the invoice factoring industry. From manufacturers and distribution companies to staffing and other service-based industries, we have imparted over 2000 business owners the opportunity to grow their companies without the everyday burden that cash flow difficulties can proffer.