Using A Factoring Company As Alternative Funding For Your Business

All companies need cash. Monies are required to sustain a business. Employees, utilities and rent have to be paid. Companies have to purchase materials and supplies. In summary, capital is necessary to both sustain and grow a business. Without it, a company simply would not be able continue to stay in business. Many businesses rely on debt so that they have enough capital to get by. While debt is sometimes a necessary evil, it is not often optimal. This is largely because debt has to be repaid and with interest. When a company has too much debt they are under a lot of pressure to perform and generate revenue so that it can be repaid.

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The Many Benefits of Purchase Order Financing

Purchase order financing has many great benefits and its availability as a cash generation option has been quite helpful to many businesses. This form of financing is fast and doesn’t rely on a businesses’ credit history, it allows companies to raise money without taking on new debt and is an option even for new businesses. Below, we will discuss these benefits more in-depth.

a. Purchase order financing is easy: For the most part, this sort of financing is fairly easy. There are not a lot of hoops to jump through, like there are with bank financing. As a long as a company has credit worthy customers and invoices to sell, it is not incredibly difficult to find a Factor to work with.

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Interview with Jon Anselma

Jon Anselma spearheads the Paragon Financial Group, which was founded in 1994 with the initiative to afford growing businesses an alternative to conventional Bank Financing. With satellites in Tampa and Orlando, Paragon Financial Group is headquartered in Fort Lauderdale, Florida.

Ralf Bieler, President & CEO of Cash Flow Exclusive, LLC, caught up with Mr. Anselma to talk with him about his company and its business, as well as about his view on the economy and future plans.

CFE: Jon, why don’t you kick us off by telling us your “story”. Who is Jon Anselma? When did you start working in the cash flow business, how and why did you get into it, and how did you get to Paragon?

Jon Anselma: I first learned of factoring while growing up in New York. My best friend’s father was a garment manufacturer in the heart of the garment district in New York City. In those days, numerous factoring companies lined those streets of Manhattan. He explained to me what factoring was and that without it, he wouldn’t be in business. I was enamored with the concept and at 15 years old decided that’s what I wanted to do for a living.

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Invoice Discounting: A Tool To Finance Your Business

Invoice discounting can be an excellent way for some companies to infuse much needed capital into their businesses. It is quite possible to run a very successful company and still not have the money nesseray to cover basic expenses such as rent, materials and salaries.

For someone who has little to no experience running a business, this may be quite surprising. However, persons who have been in the trenches, are quite aware that a company can be profitable and still be cash poor. Most companies that find themselves with not enough capital to meet their obligations, will turn to a bank in hopes of obtaining a loan. This can be a decent option in some cases but may not be available for every business. There are also some huge disadvantages to using a bank loan. We will discuss some of those below. First, we will mention what might be an excellent choice for businesses in certain industries, invoice discounting.

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Financing Your Business By Factoring Invoices

Business owners must be resourceful in order to be successful. This has never been more true then today. With companies being forced into bankruptcy or into closing their doors, finding the money to stay afloat is becoming more difficult. One method that is perhaps underutilized by a large number of businesses is invoice factoring. Many companies are unaware that it exists or may lack enough understanding to give it a try.

Factoring invoices is a great way for businesses in many different industries to raise the money that they need to function and/or grow. It provides a way to raise capital that does not require taking on any debt. This is very attractive to many business for a number of reasons, two the most common are not being able to get a loan and not wanting to add any more debt to an already heavy load.

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