Paragon Financial Group Inks PO Financing for Equipment Reseller
Paragon Financial Group announced that it has provided a $900,000 purchase order financing and invoice factoring line of credit deal to a large equipment reseller. The financing will enable the company to take on global contracts and expand.
The Miami-based company is a provider of heavy equipment, such as backhoes and cranes, to the United Nations (U.N.). It had an opportunity to take on a new contract with the U.N. to provide equipment to earthquake-ravaged Haiti, but needed financing to purchase the products needed. The company had never factored before, and was appreciative of Paragon’s knowledge and negotiating expertise.
“They had a lot of hoops to jump through with the United Nations as payer,” said Michael Rossi, president of Paragon Financial Group. “We were happy to lead the way for them.”
Usually, once factoring is complete, Paragon sends domestic corporations a notice of assignment, a binder of payment that gives Paragon legal recourse should the debtor not pay. However, the U.N. is not bound by U.S. law. Paragon researched the U.N.’s documented assignment guidelines and found the right person to negotiate with, as well as the U.N.’s procurement officer in Haiti, their payment office in Denmark, and the equipment supplier in Columbia – a virtual U.N. of contacts. The U.N. also only pays by wire, and only to the name of the company on the contract. Paragon negotiated with the bank to accept a wire in the company’s name.
With Paragon’s purchase order financing and factoring line of credit, the company will be able to purchase equipment and continue to expand its growing business.
For over 18 years, Paragon Financial Group has provided working capital solutions for growing companies throughout the U.S. It serves 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.