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Invoice factoring


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Invoice factoring explained.

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Invoice factoring

  1. 1. What is Invoice Factoring? INVOICE FACTORING EXPLAINED
  2. 2. What is Invoice Factoring? Invoice factoring is the process of selling aging commercial 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. 3. Fast and Insured Working Capital Invoice factoring differs from a bank loan. The accounts receivables are sold to the factoring company rather than merely offered as collateral. Your company can convert its receivables into immediate operating working capital. Plus at Paragon Financial we include credit protection. If your client goes bankrupt or insolvent you are protected.
  4. 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. 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 and more.
  6. 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. 7. What’s Next? For more information on invoice factoring contact Paragon Financial Group today at 888.400.5931 or visit us at: factoring