CapitalPlus’ Accelerated Payment Program (APP) can be a valuable tool for subcontractors looking to save time and money. This program allows subcontractors to receive payments more quickly than traditional payment methods, which can help improve cash flow and reduce financial stress.
By providing more frequent payments, reducing the risk of disputes, and improving the relationship between general contractors and subcontractors, our accelerated payment program can help to promote greater financial stability and success for all parties involved in the construction process. Contact your general contractor for a referral today.
Improve cash flow: Subcontractors who use an accelerated payment program can receive payment for their work more quickly, which can help improve their cash flow and reduce financial stress.
Reduce the risk of nonpayment: By receiving payment more quickly, subcontractors may be less likely to encounter issues with non-payment, which can be a significant risk in the construction industry.
Enhance ability to bid on projects: Subcontractors who use an accelerated payment program may be able to bid on more projects, as they will have access to the funds they need to get started more quickly.
Greater financial flexibility: Subcontractors who use an accelerated payment program will have more flexibility in managing their finances, which can help them plan for future projects and investments.
Our experienced financial and construction industry experts are happy to answer all your questions – call 865-670-2345 or request a quote today.
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Our construction financing solutions and services allow you to focus your time and money on building and growing your business without worrying about working capital or back office functions. We give you steady access to cash flow to help you grow – for operating costs, new or large contract needs, acquisitions, and more.
If you are new to CapitalPlus Financial Services or factoring in general, we hope that we can give you the information you need to make the best decision for your company’s working capital needs.
Invoice factoring is cash flow-supporting solution where you sell your accounts receivables, i.e. outstanding invoices, to a factoring company for immediate funding. This means you do not have to wait the 30-90 days for payment. Factoring companies provide billions of dollars to a wide range of industries - from multi-million-dollar corporations to small privately held construction companies each year.
Factoring provides an immediate source of cash flow for your company. Because can choose where the money is needed most, it can be used to take on more or larger projects, to meet payroll, pay taxes, replenish inventory, increase advertising, purchase equipment, improve your credit rating, and so much more.
When we purchase an invoice, we advance you a percentage of the face value. This advance rate amount varies based on the situation, your needs, and an overall risk assessment of your client. Generally, you will receive up to 80% right away, then receive the remaining reserve (less fee) after we receive your client's payment. We are 100% transparent about our fees so there are never any surprises.
When we purchase your invoice and advance a portion, the remaining 20-30% will be held in reserve. After we receive payment from your customer, that reserve is wired back to you, less our fee.
The established factoring fee is a percentage of the purchase amount and the length of time it takes to collect. The amount is determined by the risk of each invoice purchased, the pay term, and the number of invoices being factored. Because of this, any fees will be laid out during your introduction call.
It is your choice how frequently you provide invoices for purchase. Just like buying in bulk at your favorite grocery store, you can receive a discount for committing to a higher volume of invoices. When you reach out for the first time, you will be assigned an Executive Account Representative. Tell your representative your needs and they will help you understand how you get the most out of factoring for the best price.
No. Most contracts specifically define how your invoices should be prepared and when they should be submitted. We have contract experts on staff who can help you understand the requirements and help you comply with invoice formats.
No. The name on the check remains yours. You will, however, be required to change the remittance address of that check to our lock box.
