How a Chicago IT Staffing Company Met Payroll Needs
For over 18 years, Paragon Financial Group has provided working capital solutions for growing companies throughout the US. They serve 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. Paragon is a leading source for receivables financing, government contract financing, payroll funding, and purchase order financing. For more information visit www.paragonfinancial.net.
The Federal government has hundreds of agencies and each of these use contractors to provide various services and goods. This gives thousands of companies like the one above the opportunity to bid on these jobs. Many businesses find these contracts very advantageous because the government is very likely to pay for any job they contract out.
These types of contracts aren’t without their financial challenges. Government contracts can require a large amount of working capital to fulfill and they the government can take a long time to pay their invoices. This wait can put a serious strain on your cash flow making it difficult to meet payroll and other operational costs. Getting traditional financing is difficult or not impossible in today's lending environment. Government contract factoring can be a very
effective way for companies to fund the operational costs associated with doing business with the Federal government.
An Internet search led the IT Staffing Company to discover the financing alternative of factoring. A factoring facility can provide the cash flow the Company needs to meet payroll and grow. Theynarrowed down their search by finding a factor that had a deep knowledge of government contract factoring. The Company also had to clear up some past tax issues in order to smooth the way for factoring, which their new factoring company was able to help them achieve.
With the factoring line in place, the Company could now take advantage of the huge opportunity to contract with the Federal government, and still meet payroll in a timely manner. The IT staffing business now has peace of mind when pursuing new business, knowing they have a good factoring business standing behind them as a resource.
The accounts receivable financing line quickly provided the Company with the cash flow they needed, when they needed it, so they could take advantage of new contracts and continue to grow. The Company now has the potential to increase their business significantly and more
than meeting their payroll with the accounts receivable facility in place.
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