FORT LAUDERDALE, FL — (Marketwire) — 07/11/12 — 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, providing working capital solutions, reports they–re providing 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, , and purchase order financing. For more information visit .
Media Contact:
Lisa Rubano
Paragon Financial Group
(724) 979-4293