Paragon Provides A/R Credit Line to Shopping Bag Importer
Paragon Financial Group announced that it has provided a $550,000 accounts receivables factoring line of credit, and vendor guarantees to a luxury shopping bag importer with headquarters in Scottsdale, AZ. The financing will enable the company to continue to pay its suppliers in China and distribute goods to its client base in the United States.
The company, which has been in business for over ten years, ran into challenges when its suppliers refused to extend its credit. The company had reached its credit limit with the supplier in China, and the supplier was no longer willing to release orders without first receiving payment. The company was not able to make the payment to the supplier, as it was waiting for accounts receivables from its local distributors.
“In this case, we were able to offer a vendor guarantee to the manufacturers in China,” said Michael Rossi, president of Paragon Financial Group. “This means that we were in direct communication with the company our client was buying product from China, and we guaranteed them that as soon as the goods were shipped, arrived, and were accepted by the end user, Paragon would provide them direct payment from the proceeds of the factoring. We have a number of clients that import goods from around that world. In the end, the suppliers are relying on the strength of Paragon