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Paragon Financial Group Review

By Sean Peek, business.com Writer | Updated Jan 14, 2020

Paragon Financial Group is a non-recourse factoring service for businesses that want to factor between $30,000 and $10 million a month. This factoring company is willing to work with businesses that have tax problems, which makes it a good fit for many companies struggling to find other types of funding. 

Paragon Financial Group

Paragon Financial Group

The Best Factoring Companies of 2020

The Verdict

Paragon Financial Group, which specializes in working with companies that have tax problems, is a good fit for many companies struggling to find other types of funding.

See all our recommendations for factoring services on our best picks page.

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 in this 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 because of this company's insurance coverage. Paragon works with startup companies and specializes in helping companies with tax problems. It also works nationwide in the United States and with Canadian companies. 

You must factor at least $30,000 per month to work with Paragon, which means small businesses that generate less revenue should look elsewhere for invoice factoring. However, there is no minimum amount of time you have to work with Paragon, which means you are not tied to a lengthy contract and you can cancel the service if you no longer need to factor your invoices. 

A strong plus in favor of Paragon is that it offers non-recourse factoring, otherwise known as credit protection. This means that in the event that a customer doesn't pay Paragon, you are not required to buy back the invoice, so your cash flow will not be interrupted. Factoring companies that only offer recourse factoring always present a risk to your cash flow. 

Paragon also offers government invoice factoring and purchase order financing, along with other services.

Minimum Requirements

Paragon, like many factoring services, does not have strict requirements for you to work with it. You can still meet its criteria if you have a poor credit score or haven't been in business for very long. However, Paragon will check your customers' creditworthiness, 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 restricts many small businesses from factoring with Paragon.

Ease of Application

After filling out an online application with Paragon, 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 we reviewed 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

Customer Service and Support

In addition to extensively researching Paragon's features, we tested its customer service. Our experiences with the company were pleasant; the people we spoke with were knowledgeable and informative. 

Paragon offers a dedicated advisor for your company when you sign up, along with telephone, live chat and email support. 

Limitations

The biggest limiting factor with Paragon Financial Group is that your business must generate at least $30,000 a month and plan to factor over $30,000 each month. This high entry amount prevents the smallest businesses from working with Paragon, though larger businesses have access to a $10 million factoring credit line.

Editor's note: Looking for the right factoring service for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.

Image Credit: wutwhanfoto / Getty Images
Paragon Financial Group

Paragon Financial Group

The Best Factoring Companies of 2020

The Verdict

Paragon Financial Group, which specializes in working with companies that have tax problems, is a good fit for many companies struggling to find other types of funding.

Sean Peek: Contributing Writer
Sean Peek,
business.com Writer
Sean Peek is a writer, small business owner and SEO specialist. He began his career in digital marketing as a freelance writer in 2013 and has over five years of experience in the B2B space. You can learn more at lightningmediapartners.com.