Paragon Financial Group is a factoring service with a focus on companies that want to factor between $30,000 and $10 million a month. It specializes in companies that have tax problems, which makes it a good fit for many companies struggling to find other types of funding.
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Paragon Financial Group Rates and Fees
This factoring company funds up to 90% of your invoices within 24 hours of purchasing them. This is a decent rate for the industry and will help increase your cash flow. After Paragon receives payment from your customers, it sends the rest of your invoice money to you minus its fee, which starts at 1.25% to 2% for every 30 days. This starting rate is a bit higher than others, though it is not the worst rate by a long shot.
You can factor up to $10 million with Paragon, but the invoices can be no more than 60 days delinquent for this factoring company to work with them because of insurance coverage. Paragon works with startup companies and specializes in helping companies with tax problems. It works nationwide in the United States and with Canadian companies.
You must factor at least $30,000 per month with Paragon, which means smaller businesses that generate less revenue should look elsewhere for invoice factoring. However, there is no minimum amount of time you have to work with the company, so you are not tied to a lengthy contract if you no longer need to factor your invoices.
A strong plus in Paragon's favor is that it offers non-recourse factoring, otherwise known as credit protection. In the event that a customer doesn't pay Paragon, you are not required to buy back the invoice, so your cash flow will remain uninterrupted. Companies that only offer recourse factoring always present a risk to your cash flow.
Along with other services, Paragon also offers government invoice factoring and purchase order financing.
Paragon, like many factoring services, does not have strict requirements to work with them. You can have a poor credit score or haven’t been in business for very long and still meet their minimum requirements. However, Paragon will check your customers to make sure they are creditworthy as they are the ones who will ultimately pay the invoices.
The only limiting requirement Paragon has is that your business must earn between $30,000 and $10 million a month. This minimum requirement restricts smaller businesses from factoring with Paragon.
Ease of Application
After filling out an online application, you can be approved for financing within 24 hours, which is a typical timeframe for this industry. However, your initial advance can take 3-10 days to process after you have signed your agreement, which is longer than most other factoring services take.
Before you start the application process, take the time to prepare the following documents:
- Your most recent accounts receivable and payable aging reports
- Your articles of incorporation or DBA filing
- A master customer list
- A sample invoice
In addition to extensively researching Paragon's features, we tested its customer service. It offers a dedicated advisor for you to work with, along with telephone, live chat and email support. The experiences we had with Paragon customer service were pleasant. The people we spoke with were knowledgeable and informative.
The biggest limiting factor with Paragon Financial Group is that your business must generate at least $30,000 a month and also plan to factor over $30,000 each month. This high entry amount prevents most small businesses from working with Paragon, though larger businesses have access to a $10 million factoring credit line.
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