Case Studies: Solutions at Work

HVAC and Plumbing contractor based out of New Jersey

Because the client has no prior payment history, their materials supplier was unwilling to offer them credit terms longer than 30 days. However, their customers typically take 70-90 days to pay.

$100,000 in raw materials through CapitalPlus’ Materials Purchasing Program.

With CapitalPlus’ help, the contractor was still able to maintain their net 30 payment terms with the supplier and avoid potentially hurting their business by paying out of pocket while waiting to receive payment.

A concrete contractor based in Texas

The firm landed a $1,200,000 contract with the City of Houston but needed a large cash infusion for upfront costs. Due to various issues and the amount required, their current financing company was not able to provide funding.

$1,200,000 in Invoice Factoring funds

The contractor was able to take on the new contract, purchase materials, pay subcontractors, and meet the weekly payroll.

A mechanical, electrical/plumbing contractor

This existing CapitalPlus client needed working capital to purchase over a million dollars of new materials and supplies to take on a large contract, which did not allow materials to be invoiced at delivery. Without a cash infusion, the contractor would have to pass on the opportunity.

$2,000,000 in Account Receivables financing

The contractor was able to purchase the equipment and start the new project, now successfully completed.

Concrete rebar contractor in Florida

This repeat CapitalPlus client has been working on Amazon warehouses across the Southeast. Due to exceptional performance, they were asked to work on several more warehouses over the next year. They would need to increase their staff and payroll substantially to fill the order.

$1,000,000 in Construction financing

The contractor took advantage of their facility and funded several invoices to generate working capital while waiting to receive payment from their retainage invoices. They were able to start all the new projects and not stress over meeting their bi-weekly payroll.

A civil construction firm based in Tennessee

This firm had an opportunity to take on a new, large contract but needed additional cash flow. A broker recommended CapitalPlus for their industry expertise in construction invoice factoring.

$2,200,000 in Construction Financing

CapitalPlus’ funding is supporting this company’s immediate cash flow needs enabling them to bring on new projects.

A masonry and concrete subcontractor working in Atlanta, GA

This subcontractor had been receiving funds from another factoring company that recently made a strategic decision to no longer work in the construction industry. That left the subcontractor without the needed cash flow to pay vendors and meet payroll.

$52,000 in Factoring funding

The contractor had the working capital they needed to take on a large and significant restoration of a stone wall on a historical property, and is now well-positioned to bid on larger projects in the future.

A start-up concrete contractor in Florida

This long-time entrepreneur had an opportunity to take on a large contract and needed working capital. However, even with decades of experience, banks were unwilling to offer him a line of credit due to his new company being in business less than a year. CapitalPlus conducted due diligence and became comfortable with his debtor and were able to offer financing.

$1,400,000 in Factoring funds

The new company now feels comfortable taking on the large contract and is well on its way toward future growth.

A demolition, excavation, and drilling contractor based in New York.

The company had used factoring from CapitalPlus for the initial phase of a $10,600,000 contract. When they needed cash flow to begin the second phase they knew they could count on additional financing.

$1.2M in additional Construction Receivables Financing

The company was able to purchase the materials needed for their concrete and structural steel contract and free up cash to meet their payroll.

A self-performing commercial general contractor based in Texas.

This contractor had excellent debtors that were not behind on payments. They had a large project with the Houston Housing Authority (HHA), but were constantly waiting for payment. As a result of this restricted cash flow making it impossible to take on more projects.

$200,000 Construction Financing with ability to increase

By factoring their HHA invoices, they now have the working capital they need to accept new projects.

A directional drilling contractor in Oklahoma

This contractor was working on a windmill farm project but needed an infusion of cash to move on to the next phase of the project.

$1,000,000 in Construction Financing funds

The increased cash flow enabled the contractor to pay their suppliers, meet payroll, and not have to wait for payment before starting the next phase of the project.

An Excavation Company in Massachusetts

This company took on a project at an out-of-state job site and needed to lease equipment locally. Because the local leasing firm did not have any history with our client, they wanted payment upon delivery.

$93,000 in Accounts Receivable Financing

CapitalPlus provided the leasing firm with assurance of payment, allowing the leasing company to provide 45-day terms. We quickly funded each monthly invoice and directly paid off the equipment lease.

A steel fabrication and erection contractor headquartered in Florida

Due to the nature of fabricating, this firm exhausted a large amount of their working capital on the front end of their projects for the materials, resulting in cash being tight for payroll. They began work on another sizable contract with a repeat debtor who had shown exceptional payment turnaround on their last project and knew they would need further support. An existing CapitalPlus client, we were able to increase their factoring facility from $250,000 to $400,000.

$400,000 in Construction Factoring funds

The increased cash flow gave them the breathing room they needed allowing them to meet payroll and the supplier’s terms.

An architectural millwork contractor in Virginia

This company was awarded a large project in March and wanted to ensure they had the proper financing in place to execute the scope of work before accepting. CapitalPlus approved them in April, but due to COVID-19 their portion of the project was put on hold.

$350,000 in Construction Factoring funds

With the flexibility of CapitalPlus’ construction financing, they were able to continue work on other projects knowing our funding would be there for them once the large project received the green light. In November, work started up and we assisted with their first round of invoicing so they could meet payroll and purchase needed materials.

An underground fiber optic telecommunications contractor based in Colorado

This company was asked to take on more work by their General Contractor whose terms were 60 days. They knew they wouldn’t be able to meet payroll or purchase materials while waiting and asked for earlier payment. The General Contractor was being stretched by the project owner and could not help.

$150,000 in Spot Factoring

Having the flexibility to choose which invoices they wanted to factor, gave them the cash flow they need to meet payroll and purchase upfront materials without worrying about relying on the General Contractor.

A finishing contractor based in Maryland

This growing client had several large projects on the horizon and knew their $300k bank line of credit would not give them enough working capital to stay on schedule. Despite being a long-term bank customer, the bank denied their request for an increase due to industry uncertainty. Since their upcoming projects are spread over several debtors, CapitalPlus was able to offer them a solution using factoring.

$15,000 in initial funding on a $500,000 Construction Project

The company was able to pay off its existing $300k line of credit with its bank and now has the working capital flexibility it needed to stay on schedule. In addition, the factoring amount could be increased because of the newly established payment history allowing the addition of new debtors.

A Connecticut-based roofing and siding contractor

The company had taken on two new sizable contracts that required extended payment terms, which impacted its ability to meet vendor payments. But they already had several merchant cash advance (MCA) loans and did not want to take on any additional high-interest-rate loans.

$500,000 in Accounts Receivable funding

They were able to pay off their high-interest MCA loans and still have the cash flow they needed to meet vendor payments.

Tile Contractor based in Tennessee

Due to the spotty nature of contracts, the company needed additional working capital quickly to keep the projects in their pipeline running smoothly.

$25,000 in Invoice Factoring

Choosing to work with their local factoring company, CapitalPlus, the infusion of cash helped the contractor meet payroll, purchase materials, and ultimately meet the tight project deadlines.

Commercial Electrical Contractor in Northern California

This contractor specializes in wiring systems for fueling and underground storage at retail gas stations. Their latest customer was taking too long to pay so they did not have the working capital needed to take on additional contracts.

$20,000 in Invoice Factoring

With increased cash flow, our client was able to make payroll and start a new project while waiting on the original customers’ payment.