Paragon Provides Factoring LOC to Wood Products Distributor
Paragon Financial Group announced that it has provided a $350,000 factoring line of credit to an area wood products distribution corporation with headquarters in Bradenton, FL. The facility will enable the company to take on an oil and energy client with challenging credit.
The startup company supplies chemically treated renewable wood products to oil drill sites. This wood is used to relieve the environmental impact of the drilling process. Now that this process is proven, the demand has become so overwhelming that the company needed to look for an outside factoring company to help boost its cash flow to fulfill orders. The company is run by entrepreneurs who own and operate several other types of businesses as well.
“Perhaps the most interesting part of this deal is that the owners of this company have experience as factoring brokers themselves,” said Michael Rossi, president of Paragon Financial Group. “With this new venture they needed to work with a company that could close the deal quickly and get them the cash that they needed fast, and they called Paragon. We closed within a week for them and now they are going to bring all their factoring deals to us. We think this is quite a compliment.”
When the company turned to Paragon one of its main issues was the credit worthiness of its primary client, who was only willing to extend net 45-day terms. Paragon was able to go to bat for the company and get it the credit insurance it needed, and fast.
With Paragon’s factoring line of credit, the company will be able to continue to grow their wood product distribution for the energy and oil industry and take on larger contracts.
Paragon Financial Group is a source for receivables financing, government contract financing, payroll funding, and purchase order financing.