How a Security Guard Staffing Funds Payroll With an Invoice Factoring Line of Credit
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.
They had been in touch with a factoring firm over the years and knew how invoice factoring could work for payroll funding. Once they found themselves in the position of needing factoring, it was an easy decision for them. They knew that getting financing through a traditional bank loan was a nearly impossible task to take on. The problem of course, is unless you are a large business with a proven track record and great business credit, the banks will not provide you with any type of line of credit. With many startup companies, the only viable asset is the account receivables they currently have outstanding. It is challenging to find the cash flow to take on additional opportunity and be competitive.
If you are a young, growing business invoice factoring can be the obvious choice to fuel your business with new opportunities. Up to 95% of the invoice amount can be advanced to the company the day the work is completed or the service is performed. When the company is ready to invoice, the factor can get them the cash they need for payroll and other expenses quickly and easily.
Young companies like this security guard staffing firm can not wait 45 to 60 days to get paid. Invoice factoring is a simple, fast and effective solution to provide a business with the working capital it needs now. A factoring company can often provide the capital the business needs within days not weeks or months. Factoring is also an effective way for young companies to get cash into their business without taking on additional debt. By selling their accounts receivables at a discount, they can get money right away without having to wait to collect it themselves.
It would have been difficult for the staffing firm to fulfill the CVS contract without the proper financing in place. The company took the proper steps in getting the cash flow they need. With the factoring line of credit, the company is able to grow their business knowing they have the resources in place to take on large contracts.
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