Our CapitalPlus Accelerated Payment Program (APP) for general contractors can be a valuable tool for saving both time and money on construction projects. This program allows your subcontractors to receive payments for their work at an expedited pace rather than waiting for payments to be processed through the traditional invoicing and payment system.
One of the main benefits of our CapitalPlus APP is that it can help general contractors to better manage their cash flow. In the traditional payment process, subcontractors may have to wait weeks or even months to receive payment for their work. This can put a strain on subcontractors’ financial resources and make it difficult for them to pay their own bills and expenses. APP, on the other hand, allows general contractors to send a payment for their work more quickly, which can help to alleviate this financial stress.
Improve cash flow: By receiving payments faster, general contractors can improve their cash flow and have more funds available to pay their own bills, such as materials and labor, which can help to keep the project on schedule.
Reduce financial risk: By receiving payments earlier in the project, subcontractors can reduce their financial risk, as they will not have to rely on payments coming in after the project is completed.
Reduce financial burden: With an accelerated payment program, general contractors can avoid having to take out lines of credit or rely on other forms of financing to cover expenses. Improve ability to manage subcontractors: With more cash on hand, general contractors can pay their subcontractors more promptly and avoid delays in the project.
Our experienced financial and construction industry experts are happy to answer all your questions – call 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 factoring or CapitalPlus Construction Services we hope that these FAQs will give you the information you need to make the right decision for your company’s working capital and bookkeeping needs.
Receivable Financing is selling the right to payment to receivables or invoices to a factor at a small discounted rate from face value so that you do not have to wait the normal 45-60 days for payment. Receivable Financing is also referred to as factoring. Over a billion dollars are provided to businesses each year through receivable financing and it is a financial service used by a wide range of companies, from multi-million-dollar corporations to small privately held companies.
When we purchase an invoice, we do so at a discount rate. Or put another way, we advance you a percentage of the face value of the invoice. This advance varies based on the situation, the needs of our client, and is subject to an overall risk assessment.
It provides an immediate source of cash flow for your company which you can use to take on more or larger projects, for working capital, to meet payroll, pay taxes, replenish inventory, increase advertising, purchase equipment, improve your credit rating, and so much more. Most importantly you can use this cash to keep building
You provide CapitalPlus with the original invoice and purchase order or contract, and we advance you a percentage of the amount that will be paid to you by your customer. The percentage that is not included in the advance is held in what we call the reserves. When CapitalPlus collects the total amount due on these invoices from your customers and refunds we send you the reserve balance to you less our fee.
The established fee is a percentage of the purchase amount and the length of time it takes to collect. The established fee is driven by the risk of each purchase, the pay term and the volume of factoring.
When we purchase an invoice, we will typically advance a portion of the invoice. The rest is held in a reserve. When we receive payment from your customer the reserve becomes real money and is wired back to you less our fee.
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 what your needs are and we will help you understand how you get the most out of factoring for the best price.
No. The name on the check remains that of our customer (yours). You will be required to change the remittance address that sends the check to our lock box.
No. Most contracts specifically define how your invoices should be prepared and when they should be submitted. We have contract experts on staff and can help you understand the requirements and help you comply with invoice formats and other issues.
