CapitalPlus Construction Services launched a new Materials Financing product to help contractors and subcontractors in all trades access mission-critical materials without tying up their capital.
“The cash flow of companies in the construction industry was hit hard by the pandemic, with many projects paused or canceled outright,” explained Scott Applegate, President of CapitalPlus Construction Services. “Contractors are often required to purchase materials upfront but can’t invoice for them until month’s end or the end of the job. At the same time, suppliers require payment on delivery or within days of placing the order, causing cash flow constraints.”
The CapitalPlus Materials Financing product enables contractors and subcontractors to order the materials they need to stay on or ahead of schedule. There is no disruption to their supply chain or logistics. CapitalPlus purchases materials on the contractor’s behalf, the order ships directly to the job site, and contractors have extended terms to repay CapitalPlus.
“We’re excited to offer another financing solution to enable construction companies to free up working capital and grow,” said Applegate. “With Materials Financing in place, they can take on larger jobs, take advantage of vendor early payment discounts, and improve their supplier relationships, all without impacting any existing bank relationship or loan.”
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