Pros

Paragon Financial offers up to 95% initial funding, which is on the upper end of the industry. The rates are variable, depending on the nature of your business, so that can work out well for some businesses, but poorly for others. No matter what, the discount rate they offer will be 1% at a minimum. They offer approval within 24 hours of completing an application, which is one of the faster turnarounds in the industry, and provide a dedicated customer support representative to work with business, as well as email, live chat, and phone support. Paragon also provides nonrecourse factoring, which means that you won’t be forced to buy back an invoice if Paragon doesn’t get paid. You can factor up to $3 million with Paragon, and invoices can be as much as 75 days over-due and still be factored. Paragon is able to factor government invoices as well as offering purchase order financing and additional services.

Cons

As Paragon works with high-risk business types as well as companies with tax issues, they do charge more in fees than some of the other factoring services we reviewed. This includes a $190 due diligence fee when your contract begins, as well as a termination fee if you stop working with Paragon. Additionally, Paragon has a monthly minimum factoring requirement of $20,000, which may dissuade some companies from working with them.