Frequently Asked Questions

Capstone offers various financing tools and programs that help facilitate a company’s growth.

They include:

• Single Invoice Construction Factoring program
• Single Invoice Factoring Program for non-construction related accounts receivable
• Purchase Order and Trade Finance.

Capstone prides itself in helping businesses grow. Typical characteristics of companies that use Capstone Financing Programs include:

• Growth is outpacing available working capital
• Seasonal sales spikes or growth spurts put a sudden strain on cash flow
• Working capital is not readily available from their current lender.

Single Invoice Construction Factoring involves selling an invoice to Capstone after we have verified that the work described in the invoice has been performed to the satisfaction of the General Contractor or the Owner.

Once we verify the work has been performed to their satisfaction and they acknowledge that payment will be made to Capstone, we purchase the invoice providing essential working capital to you.

Subcontractors and certain General Contractor use this program to cover payroll and other operating expenses, pay suppliers early in exchange for prompt payment discounts which in turn provides confidence to bid on more jobs to create a backlog of work.

Single Invoice Factoring can be used by staffing companies, product distributors, licensees, manufacturers, sales organizations, service companies, and importers.

Capstone collects fees to cover costs of public searches, public filings, and credits for Single Invoice Factoring. Typically clients submit their application, accounts receivable, and accounts payable aging reports. Once reviewed, the underwriter requests a due diligence payment to cover costs. Any unused fees are returned to the client via the rebate system.

Purchase Order Financing can be used to finance the purchase or manufacturer of specific goods that have already been sold. We enable this process by issuing letters of credit or providing funds that allow our clients to secure the inventory they need to fill their open sales orders.

We customize each lending program to a specific business situation, taking into account your long-range objectives and opportunities for growth.

Purchase Order Financing is used by manufacturers, distributors, importers, and exporters. It can be used for payments to third-party suppliers for goods, issuing letters of credit, and for making payments for direct labor, raw materials, and other directly related expenses.

Capstone will only offer a commitment letter for Purchase Order Financing if there is a high probability of closure.

There are no front fees required to receive a commitment letter.

Once a commitment letter is signed by the client and a due diligence fee is paid, Capstone will then complete the due diligence and prepare closing documents according to the terms of the commitment letter. Once the deal is signed at the closing, the client is then committed.