BC-Factoring Outlook for US Small Business,638

(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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