MIAMI, FL–(Marketwired – October 21, 2015) – In the 3rd quarter of 2015, Paragon Financial has experienced a sharp increase in funding deals in the oil and gas industry. Rising debt payments and shrinking revenues are putting oil and gas companies in a difficult cash flow situation. As a result, their suppliers are feeling the pinch with payments taking longer than in the past. The oil and gas suppliers are opting for non-recourse factoring of their accounts receivable in order to keep their working capital at a healthy level.
According to a September 2015 report by the U.S. Energy Information Administration (EIA), a group of 44 onshore oil producers, outputting 2.7 million barrels of oil production, are struggling with falling oil prices. For the 2nd quarter of 2015, an estimated 83 percent of the operating cash flow is going to debt payments.
Chris Curtin, Paragon Financial’s National Sale Manager said, “With the price of oil low and oil companies net worth dropping, traditional lenders are severely limiting vendors and supplier borrowing power. This ongoing cash crunch is trickling down to oil and gas suppliers, vendors and distributors. We are seeing a sharp increase in funding deals as they move towards factoring their accounts receivables as a solution to their own working capital needs. Paragon’s non-recourse accounts receivable factoring programs are especially valuable in this unstable environment.“
According to the EIA, oil companies have been borrowing excessive amounts of money to continue to operate. With oil prices in a low trading range, it is becoming increasingly difficult for indebted companies to secure fresh loans. As an example, Oklahoma-based driller Samson Resources Corp. filed for chapter 11 bankruptcy on September 16. Non-recourse factoring help protect Paragon Financial’s clients against oil and gas company bankruptcies.
About Paragon Financial Group
For over two decades, US companies across all industries have selected Paragon Financial to meet their working capital needs. Non-Recourse Accounts Receivable Facilities are available up to $3,000,000 USD.
From government contractors to distribution companies, from staffing firms to manufacturers; business owners have successfully grown their companies with Paragon Financial’s Non-Bank Invoice Factoring, Accounts Receivable Management, Credit Protection and Purchase Order Financing Programs. For fast funding now, please call 888-271-9347 ext 1 or visit our website paragonfinancial.net.