Invoice factoring is a process where a company can sell its aging accounts receivables to a factoring company in exchange for immediate cash, typically 80-95% of the invoice amount. This provides companies with quick working capital that can be used for payroll, materials, or other financial needs. The factoring company then takes over collection of the receivables. Invoice factoring differs from a bank loan because the receivables are sold rather than used as collateral. It can be a good alternative for companies that need cash quickly but may not qualify for a traditional bank loan. The factoring company will conduct due diligence on the creditworthiness of the selling company's customers.

1. What is Invoice Factoring?
INVOICE FACTORING EXPLAINED

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. 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. 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. 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. 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. What’s Next?
For more information on invoice factoring contact Paragon
Financial Group today at 888.400.5931 or visit us at:
http://www.paragonfinancial.net/how-it-works/invoice-
factoring