Our 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 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.
Factoring is financial option that involves selling of your receivables or outstanding invoices to a third party company for at a discounted rate. This allows you to not have to wait the normal 30-90 days for payment. Factoring provides billions of dollars to a wide range of companies - 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 you are able to 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, we will advance a portion of the invoice, usually 70-80%, and hold the remaining in reserve. After we receive payment from your customer, the 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 there are so many factors that determine this amount, you will be quoted all fees up before agreeing to anything.
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 and other needs.
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.
