(http://www.paragonfinancial.net)
As the financial sector begins to pick itself up and dust off the
fallout of the past few years, factoring companies are seeing an
uptick -- albeit a cautious one -- in activity. Paragon Financial
Group, a factoring
company(http://ctt.marketwire.com/?release=907734&id=1795873&type=1&url=http%3a%2f%2fwww.paragonfinancial.net%2f)
providing working capital solutions, reports they're providing invoice
factoring(http://ctt.marketwire.com/?release=907734&id=1795876&type=1&url=http%3a%2f%2fwww.paragonfinancial.net%2fhow-it-works%2finvoice-factoring)
and other trade financing for more and more companies to fund growth
and take advantage of the recovering economy.
In business for more than 18 years, Paragon is seeing larger deals,
more competition, and more scrutiny.
"We've had an increase in business of 28 percent as compared to this
time last year," said Michael Rossi, President of Paragon Financial
Group. "Our first quarter growth was positive and that has continued
into the second quarter. Right now we have a good pipeline of deals,
many of which are larger than we have seen in the past, and many with
more established companies. That's the positive."
Industries providing that uptick include energy, distribution, IT and
temporary staffing, according to Rossi. "The energy sector is seeing
more small investors and entrepreneurs beginning to take advantage of
increasing opportunities in oil and gas, solar, wind and other
technologies, and they're looking to factoring to fund their new
business efforts. Within the IT industry, as more companies are
converting to cloud computing platforms, the demand for expertise in
this area is on the rise. As the economy begins to recover and
businesses grow, using temporary staffing is a good way to begin to
ramp up, so temporary staffing companies come to us to help meet
payroll needs."
In light of bankruptcies caused by the downturn, Paragon is being more
diligent in its underwriting but is also finding new opportunities.
Competition has increased across the board and banks are once again
appearing on the scene after sitting on their cash for a few years, a
good sign for business. Smallbiztrends.com reports 60.8 percent of
U.S. banks surveyed said they plan to do more commercial lending in
2012, and 12.7 percent said they plan to do "considerably more."
A necessary tonic In the long run, the economic downturn may have
provided a positive side effect, filtering out the weak and
strengthening those that remain, Rossi said.
"Looking back at the dramatic events surrounding 2008 and 2009, I can
say without a doubt: that which didn't kill us, made us stronger... We
streamlined our back office, improved our underwriting techniques, and
got more creative with our marketing. The factoring companies who not
only survived but improved themselves in the process will begin to
reap the rewards as the economic wave begins to gradually build
momentum."
Rossi expects that wave to show a continued gradual growth for the
rest of 2012 and 2013, with uncertainty the main factor in keeping the
growth slow.
"The downturn resulted in a lack of confidence that keeps people
talking conservative. But economists and financial industry experts
say businesses who got knocked down in 2008 and 2009 are getting back
in the game and banks are beginning to lend again after a few years of
conservative mindsets. My sense is companies are willing to take risks
again."
About Paragon Financial Group For over 18 years, Paragon Financial
Group has provided working capital solutions for growing companies
throughout the United States. They serve small to large-size companies
across a wide variety of industries through the factoring, accounts
receivable and purchase order financing lines up to $3 million per
month in volume. Paragon is a leading source for invoice factoring,
government contract financing, payroll
funding(http://ctt.marketwire.com/?release=907734&id=1795879&type=1&url=http%3a%2f%2fwww.paragonfinancial.net%2fwe-fund%2fpayroll-funding-through-factoring),
and purchase order financing. For more information visit
http://www.paragonfinancial.net(http://ctt.marketwire.com/?release=907734&id=1795882&type=1&url=http%3a%2f%2fwww.paragonfinancial.net%2f).
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