Material Financing for
Contractors & Subcontractors
Take control of your cash flow, and open up opportunities by having CapitalPlus purchase your projects’ materials for you.
How Material Financing Works
We purchase construction materials for general contractors, subcontractors, and owners to provide them with extended payment terms, freeing up working capital to help their businesses grow. You gain the strategic advantage of being able to order materials sooner than your current cash flow restraints allow, so you can work faster, invoice sooner, and stay on or ahead of schedule. As you know, completing a project on time is crucial to your current and future success.
And our fee structure is clearly spelled out in advance so you know exactly how beneficial the program is to your business.
Who Does Material Financing Benefit?
Owners, general contractors, subcontractors, and suppliers in all construction industry trades. Our flexible approach also means we can work with companies in all stages of the business lifecycle, from startup companies that have limited or no credit history, to long-established companies.
How Does Material Financing Specifically Help Subcontractors?
Subcontractors are often required to provide materials and perform work while only being able to invoice once a month. They must then wait for payment from the General Contractor or Owner. Suppliers on the other hand often want payment immediately or within days of placing the order which creates a cash flow/working capital gap in the company’s finances. We create a bridge for these gaps while also ensuring suppliers are paid within terms.
What Construction Materials Does CapitalPlus Purchase?
Construction materials from raw materials such as lumber, steel and concrete to features such as windows, doors and lighting, and even full systems such as plumbing, electrical and HVAC.
How Materials Financing Works
You submit your materials quote to CapitalPlus
The Supplier ships the materials to the job site
You pay back CapitalPlus
STEP
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CapitalPlus purchases your materials
You receive payment from your client
Step
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You submit your materials quote to CapitalPlus
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CapitalPlus purchases your materials
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The Supplier ships the materials to the job site
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You receive payment from your client
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You pay back CapitalPlus
Benefits of Working with
CapitalPlus:
We help our clients close cash flow or working capital gaps inherent in the construction industry.
Clients can order materials earlier to minimize lead time, with no logistics disruption.
Extended terms often give clients the time they need to receive payment from their customers before our due date.
Clients free up working capital to take on larger jobs.
Our fees are transparent as there are no nickel and diming or hidden charges.
We offer in-house underwriting for quick decision-making.
There are no monthly minimums.
We will work with bonded projects.
We Keep You Building
Our experienced financial and construction industry experts are happy to answer all your materials financing questions – call 865-670-2345 today.
Get a Free QuoteFrequently
Asked Questions
If you are new to factoring or CapitalPlus Financial 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, also referred to as factoring, 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. Over a billion dollars are provided to businesses each year through receivable financing. 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, your needs as our client, and an overall risk assessment. We are 100% transparent about our fees so you will never be surprised.
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 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.
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 factoring fee is a percentage of the purchase amount and the length of time it takes to collect. The amount is driven by the risk of each purchase, the pay term, and the volume of factoring. You will know the fee before you agree 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 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 who can help you understand the requirements and help you comply with invoice formats and other issues.
Affiliations
