Materials Financing

We buy the materials and supplies you need right now, and that buys you time.

 

What is Materials Financing?

Materials Financing is a short-term capital solution in which a third-party lender, such as CapitalPlus, purchases the materials contractors and subcontractors need and gives them extended terms to pay it back. You gain the strategic advantage of being able to order materials sooner than your current cash flow restraint allows, so you can work faster, invoice sooner, and stay on or ahead of schedule. And in the construction industry, completing a project on time is crucial to your success.

How Does Materials Financing Help Subcontractors?

Materials Financing can be the solution you need to purchase the mission-critical materials you need right now. Construction firms are often required to provide materials needed to complete a job immediately, but are only able to invoice once a month or at the end of a job. That leaves you with a cash flow gap as you wait for payment from the general contractor or owner. Suppliers, on the other hand, often want payment on delivery or within days of placing your order, adding pressure to your working capital situation. Materials Financing bridges these gaps, allowing suppliers to be paid within terms and enabling you to keep working.

How Does Materials Financing Work?

Materials Financing Infographic

After a quick application and approval process:

  1. You send us a purchase request detailing the materials required, then we send you an estimate for review and approval.
  2. You issue us a purchase order.
  3. We buy the materials from one of our suppliers or set up a relationship with your preferred supplier.
  4. The order ships directly to your project or job site.
  5. You repay Capital Plus the principal plus our fee with extended terms.

Who We Work With

Contractors and subcontractors 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 who have limited or no credit history to established companies.

What Materials Do You Purchase?

From raw materials such as lumber and piping to components such as electrical circuits, we buy the materials and supplies you need right now, and that buys you time.

Benefits of Material Financing with CapitalPlus:

  • We help our clients close cash flow/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 client before our due date.
  • Clients free up working capital to take on larger jobs.
  • Clients can take advantage of vendor early payment discounts, making our program cost neutral.
  • Our fees are transparent: no nickel and diming or hidden charges.
  • We are a direct financing source with decision makers on site.
  • We offer in-house underwriting for quick decision-making.
  • There are no monthly minimums and no penalties for non-usage.
  • We finance materials for bonded projects.