Suppliers may enter into deferred credit agreements with their customers and then sell the future receivables to Paragon Bank Technology Finance on either a disclosed or undisclosed basis. Where it is undisclosed, payments are made monthly/quarterly/annually by the customer over one-five years to the supplier, with the supplier – who has already been paid in full up front by Paragon Bank Technology Finance – passing on the payments. This structure enables suppliers to maintain a customer-facing role by providing billing and collecting services.
For example, a Times top 100 company which supplies hardware, software and services solutions to the UK private and public sector is dealing with a major UK bank. The bank wishes to move payment for products and services into a future budget period whilst enjoying use of the products immediately. Our deferred payment solution means that both the suppler and the customer sign a deferred payment agreement which is then assigned to Paragon Bank Technology Finance, triggering immediate payment in full.
Similarly the purchase of receivables from established independent finance companies allows them to offer innovative financing solutions to their own customers.
For example, independent finance companies offer their customers, vendors and suppliers finance structures which they prefer not to fund themselves. Paragon Bank Technology Finance buys the assets and/or receivables on a non-recourse basis, enabling the independent finance companies to grow whilst freeing up liquidity for further expansion. Through detailed knowledge of its partners businesses, and their customers’ respective requirements, Paragon Bank Technology Finance is able to provide a prompt and effective alternative source of debt funding.
We can also provide a Loan facility to enable customer to make repayments over time with immediate payment to and profit recognition by Supplier.
For example, the UK subsidiary of a large global corporation wished to fund software and first year maintenance over a 2 year term with the first repayment in a future budget period. The vendor wished to induce the customer to purchase its licences and maintenance costing £2m so offered an interest free solution and, with the cooperation of its reseller, introduced Paragon Bank Technology Finance’s loan product to its customer.
We offer a variety of finance solutions to the media & technology industries.
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We’ve used numerous finance companies over the years, but we find Paragon Bank Technology Finance to be very efficient and streamlined. Also they understand the business.
Head of Finance, Video Europe