How to Strengthen Your Business for Growth In a post COVID -19 Environment

How to Strengthen Your Business for Growth In a post COVID -19 Environment

06:00 02 June in Blog

How Invoice Factoring Can Strengthen Your Business for Growth

The economic challenges of the Corona Virus have left a cash flow shortfall for many firms. Even in today’s high growth economy, the cards are still stacked against many small firms. With an impaired balance sheet as a result of your equity being eaten away by tighter operating margins, the rising cost of materials and labor, and the inability to pass on the additional costs means that bank financing is almost impossible to get. If you are lucky enough to have a bank line, the terms and conditions may have changed as new regulations have the potential to shift the profile for your relationship with the bank from a strong personal relationship into a loan that is categorized as ‘risky,’ thereby requiring the bank to increase its capital requirements. The ability to find and obtain needed financing to strengthen and grow businesses remains a true challenge. Cash flow management can either make or break a small business.

Without proper cash flow management, you will never be in a position to grow your balance sheet and change the lending profile of your company from the bank’s perspective. The demands within the construction industry seem to be constantly working against you. As more contractors and subcontractors bidding on the same jobs, to remain competitive, you must offer extended payment terms and earn less on the jobs that you successfully bid. Meanwhile, as the business owner, you must ensure you have the cash flow to make payroll, pay benefits, manage and collect accounts receivable, manage and pay suppliers, and find work to backlog. These demands create an almost perpetual cycle of cash flow deficiency for your business. To add insult to injury, a natural disaster such as the COVID-19 Virus can create a sharp decrease in work, and because of your constrained cash flow, you must pass on opportunities to increase your workload and backlog.

Stretched Cash = Business Risk

Firms across the nation face similar conditions each day in their businesses. Let’s take a look at Marc; Marc owns and operates a successful electrical firm supplying services to the City of New York, the Board of Education, and Mass Transit, to name a few clients. Working within the industry-standard practice of 90+ day payment terms was challenging enough. Then, COVID -19 hit.

The demand for his company’s services dramatically decreased and an immediate reduction of work was the result.

The delay in collecting accounts receivable, as a result of extended payment terms needed to gain the highly competitive business, was forcing the company to miss payroll and delay payment to its own suppliers, the lifeblood of the business. The residual impact of stretching inadequate cash flow leads to neglected bidding capacity. The company’s backlog of work was reduced from the typical six to 12 weeks to just two weeks. Realizing that stretching existing cash flow was no longer an option, the company approached local banks for financing help. Each one turned down the company’s loan applications but referred the company to alternative financing firms. Even those firms turned down the contractor due to strict credit conditions, balance sheet issues, and the existence of debt hangover and the company’s inability to meet other loan covenants.

Taking Control & Keep Up with Factoring

There is a multitude of companies that provide invoice factoring or spot factoring to small businesses. This is an effective strategy to help companies obtain the funding they need when traditional sources, such as banks, and finance companies, are not available or willing to help. This invoice factoring strategy refers to the sale of only that portion of a company’s accounts receivable needed to meet its cash flow needs.

In other words, the company sells its outstanding invoices for services the company has already provided, only if it needs the additional cash flow for operations. Companies are then able to sell a single invoice or a schedule of invoices in exchange for much-needed working capital. Those funds provide staying power until cash flow catches up with expenses. Invoice factors typically work with construction-related companies including electrical subcontractors, drywall subcontractors, mold remediation firms, and demolition companies.

Meet Extended Payment Terms & Grow Business

In today’s competitive market place, the ability to offer extended terms is crucial to winning business with large firms. Many businesses shy away from offering extended terms on their accounts receivable to their customers because they cannot handle the cash flow burden that comes along with the offering of extended credit terms. However, larger customers expect extended credit terms and prefer to do business with those vendors that can provide them.

Providing extended credit terms to customers ensures that the larger company is cash-flow positive and has lower costs of borrowing. Through invoice or spot factoring, your company will become a more valued supplier to your existing customer base and provide you with the potential to grow even more. With invoice factoring, the factoring firm waits to get paid while commercial firms get the working capital required to stay afloat while the accounts receivable matures. The cost of factoring is a percentage of the receivable, so astute small business owners will increase the cost of their goods to take into account the cost of factoring their invoices.

This pricing strategy essentially transfers the cost of factoring to their customers and allows the small business to grow to the extent it can with its large customers.

Repay Bank Loans

In addition to immediate cash flow needs, many small businesses also have debt hangovers from revolving credit facilities that have been termed out as a result of the COVID -19 and the change in their financial condition.

Capstone Capital Group, LLC is adept at working and negotiating with banks and finance companies that are unable to extend more credit to their existing borrowers. By entering into Limited Subordination Agreements (LSA), the bank permits Capstone to purchase accounts receivable that would have otherwise been part of the bank’s collateral.

This added liquidity ensures the business owner has sufficient working capital to operate with until their credit line is paid down. In many cases, as the business grows because of the use of the LSA, the bank or finance company is paid down quicker and at less cost to the business owner. This is accomplished through increased sales and overhead being allocated over more jobs.

The range of cash flow solutions provided by Capstone includes accounts receivable management services, funds control, providing credit information on accounts, and in some cases, trade finance or purchase order financing. These firms can provide needed cash now without the bureaucracy of a traditional bank or finance company. Invoice factoring gives you cash as needed when you need it.

Joseph F. Ingrassia is Managing Member of Capstone Capital Group, LLC, a factoring and trade finance firm that provides businesses with needed working capital through invoice factoring and custom purchase order financing solutions.

Capstone Electrical Eng COVID19

A look back at 2019 business growth in America

07:58 28 May in Blog

Throughout 2019, we experienced a tremendous uptick in the economy resulting in low unemployment, low inflation, and increased household spending. Overall, one would believe this would lead to significant growth across a number of sectors of the economy. However, there were other forces which when combined, presented some challenges for some small and mid-sized business owners.

Trade Wars with China Threatening Economic Growth

Perhaps one of the more challenging issues which besieged business in the United States was the threat of reduced trade with China. As many import and export businesses are fully aware, this trade helps us keep costs lower for consumers. Higher tariffs imposed on Chinese goods meant higher costs to consumers and also presented some new supply challenges. Fortunately, the back and forth eased up towards the end of 2019, helped farmers and also created new demand for import and export business owners resulting in higher demand, and therefore, the need for additional funding.

Tech Business Growth Continues Upwards Trend but…

While tech businesses continued their upward trajectory, there was plenty of controversies. There were record fines imposed on some businesses, while others were subject to hacking, and other problems. Privacy issues, trust issues, and other problems continue to plague this industry while the demand for more technology solutions continues.

The Retail Apocalypse Continues

While retail sales have shown an increase, this is not well-reflected in brick-and-mortar establishments. Retail giants are continuing to cut their locations while giants like Amazon have continued to show improved signs of strength since 2008. Currently, this is good news for those who are in the import/export business but maybe more problematic for distributors who depend on retail giants for their revenue.

Small Business Lending in 2019

The Small Business Administration (SBA) reported a great year with small business loan volume increasing slightly over 2018 totals. As of October of 2019, the SBA reported there had been more than 60,000 loans offered to small businesses across the United States. While this number showed signs of increased lending, there are a total of 30 million small businesses across the United States meaning there are potentially several business owners who could not secure SBA loans or did not have access to other forms of lending.

Economic Uncertainty Seems to Have Increased

Perhaps one of the most unusual business stories released during 2019 was interest rate changes. The Federal Reserve cut interest rates three times during 2019 when they had originally been on the increase. While many believed that lower interest rates would help spur more business lending, in some cases, banks were tightening their belts and making it harder for some businesses to obtain loans.

The Usual Businesses Seem to be Left Behind

Unfortunately, as with the trends found in 2018, some business owners were left behind even during a booming economy. A careful review of business loans showed the following businesses and sectors seem to be still trying to secure additional capital and have been having more problems than usual. In fact, 32 percent of all small business owners (the same as 2018) showed access to capital was their primary concern. Some of these businesses and sectors including:

  • Minority-owned businesses — for a number of reasons, many minority-owned businesses continue to face challenges growing their business due to a lack of capital. In many cases, this is because these businesses are often smaller operations and they do not have well-established banking relationships.
  • Import-export businesses — because of continued changes in trade deals, and new trade restrictions, some import-export business owners are finding it more challenging to secure funding. This trend is likely to continue until such time as new trade deals are put into place.
  • Construction businesses — there has always been a difference between how a construction project is funded and 2019 found this remains to be true. Subcontractors often face challenges purchasing the needed materials in order to fulfill their end of a contract. Without appropriate funding, this has been challenging. As unemployment rates continue to be at historic lows, these businesses also must raise wages to remain competitive.

At Capstone Capital Group, we understand the challenges business owners faced during 2019, as well as the challenges they are facing during 2020. This is why we remain committed to working with businesses to help them get the funding they need to help grow their businesses and have the capital on hand to take advantage of larger contracts. Please call us at (212) 755-3636. One of our highly-trained representatives will work with you to find a funding solution that helps you reach your goals.


Invoice Factoring

Making the Most of Your Finance Network With Invoice Factoring

07:46 24 March in Blog, Business Funding

Most small and mid-sized business owners know someone who offers financing options. When you are running a business, there are occasional times when keeping up with cash flow needs feels like an impossible hurdle to overcome. Companies understand how long it takes to apply for and gain approval for a traditional bank loan. Since your lines of credit are often needed to ensure you have materials for future orders, what other options do you have to get the cash you need quickly? Factoring is the answer — invoice factoring is one of the easiest and fastest methods of getting a quick infusion of cash into your business.

Tap Your Financing Network

If you are like most business owners, you either know someone who offers short-term financing, or you are working through a broker who handles short-term loans. If you are working with anyone who provides this type of financing, you should ask them about invoice factoring and how you can take advantage of it for your immediate needs.

What Factoring Can Accomplish

When you are facing a cash crunch because orders are fulfilled but unpaid, you may not know how to get the cash you need. Invoice factoring can help you meet your immediate cash needs without entering into debt you will have to repay later.

First, you decide which invoice or invoices you want to factor. Then you or your financial broker have those invoices vetted by a factoring partner and within a few days, you have the cash you need to meet your obligations.

The best thing about finding the right factoring partner is you retain a great deal of control over your accounts receivable. For example, if you decide to work with Capstone, you are not committed to factoring all of your invoices. You determine which invoices you want to use, we vet them, and we send you the agreed-upon amount upon approval. Yes, it is really that easy.

You do not need to continue to attempt to run your business from job to job. Instead, you can take advantage of factoring options and accelerate your cash flow starting today. Please email us at [email protected] or call us at 347-410-9697 and let us help you create a customized plan that enables you to reach your full potential.


Working Capital for Landscapers

Working Capital for Landscapers

07:08 19 March in Blog, Business Funding

Landing a contract with a municipality, condo development, or a commercial property owner to maintain their grounds is exciting. However, imagine you learn that receiving payment on that contract could take 30-90 days. You might now be wondering how you are going to pay your staff, make sure you have the equipment you need for the job, or meet your other financial obligations. Spot factoring may help you solve that problem by increasing working capital for landscapers quickly.

Using Purchase Orders and Invoices

Once you have landed a large contract for landscaping work or you issue your first invoice, waiting up to 90 days for an infusion of cash may seem untenable. After all, you have to pay the people you hire to meet the terms of the contract. And you may need to purchase additional equipment to ensure you can meet the required deadlines. Your purchase order or your invoice will convert to cash within 48 hours of submitting in some cases.

At Capstone, we take pride in offering contractors of all sizes options to meet their cash flow needs. We handle spot factoring of invoices, and we can also fund against a purchase order. Keep in mind that we understand your operation may be small, and you may be just starting out. The good news is we base our funding on the security of the company or municipality with whom you are doing business.

Growing Your Business with the Right Financing Options

One of the best reasons to do business with Capstone is that we offer fantastic turn-around times. We understand a bank loan can seem elusive. Once you have submitted all of the paperwork they require, it could take six to eight weeks or more for approval, and several more weeks before funding. Most banks do not want to deal with small contractors. This can hamper your ability to grow your business and take on new contracts. The funds provided through the programs we offer enable you to bid on more significant contracts. You can proceed feeling confident you will have the necessary capital to complete the job.

For more information on Capstone products, please email us at [email protected] or call us at (212) 755-3636 to speak with a financing representative today. Let us find a customized solution to help you meet your contractual obligations and help grow your business.

Factoring to Leverage Client Invoices

How Subcontractors Can Leverage Client Invoices

07:47 17 March in Blog, Business Funding

As a subcontractor, you are typically waiting to be paid until other people finish a specific task on a project. This can cause painful delays in getting invoices paid, making meeting your accounts payable obligations difficult. However, you may be able to leverage client invoices by taking advantage of factoring.

Subcontractors often face challenges taking on large jobs because they lack the needed capital to purchase materials. This can be a significant issue as this challenge can stifle growth. However, if you are working with a contractor who has a bond in place to secure the completion of the project, you could leverage client invoices.

Cash Flow Improvement by Factoring Client Invoices

One of the challenges many subcontractors face when they are bidding on jobs is having the cash available to secure the materials necessary. This can be problematic when you are trying to grow your company by bidding on larger jobs. Because banks and other financial institutions are reluctant to make loans to a subcontractor, you may not know where to turn. Factoring client invoices can be the right solution.

When you secure a job, your contractor likely had to place a deposit and a bond with their client. The result is the contractor is guaranteeing completion of the project, as well as guaranteeing payment for your portion of the work. You can leverage this by using spot factoring — selling your invoice to a factoring company.

Selling Invoices One at a Time

Common concerns about factoring include the possibility of forfeiting your right to pick and choose which invoices you factor. However, when you work with Capstone, we allow you to make the decision whether you factor a single invoice or multiple invoices. We will spend the time needed to understand what your goals are, how much cash you need to bid on the next contract and design a financing package that helps you reach your goals.

The goal at Capstone is to help you accomplish your business goals by making sure you have the cash flow you need. Contact one of our highly trained representatives today at (212) 755-3636 or via email at [email protected] and let us answer your questions about how our products can help your business.

invoice factoring partner

How Brokers Can Identify the Right Invoice Factoring Partner

07:19 13 March in Blog, Broker Resources

As a financial services broker, identifying the right partners is essential. Too often, brokers offer leads to providers of financing and find themselves on the outside looking in. Therefore, identifying capable and trustworthy invoice factoring partners early in your career is essential.

Most brokers are looking for an ongoing relationship that does not cost them future revenue; exceptional communication between the funding company and themselves; training when needed; and tools to help them maximize their business potential.

This model holds regardless of the amount of business the broker is referring and which products they need to meet the needs of their clients. That is why for years, brokers have learned to rely on Capstone.

Capstone Values Broker Relationships

If your business focuses on small companies and embraces minority-owned firms, you need a trusted partner. Your clients’ needs come before anything. You often seek opportunities to provide them with unique methods of obtaining the cash they need to keep their business functioning. Some of the ways Capstone demonstrates their commitment to broker relationships include:

  • Custom packages for your clients – every customer has unique needs and we will work with you and with your client to make sure we offer them a package that meets those needs.
  • Local services – regardless of where your client is located, we can help.
  • Regular commission checks – if we are doing business with your customer, you will get a regular commission check from us.
  • Training – you need never worry about any uncertainty with our products. We provide you with training, educational materials, and brochures, so you know which products you can safely offer.

If you are looking for a partner you can trust to help you grow your business by assisting your customers, today is the day to reach out to Capstone. Contact Capstone Capital Group today at (212) 755-3636 and see how we can enable you the opportunity to grow your own business while providing your clients with the financing they need to grow their businesses.

Leverage Client Credit for Cash Flow

Leverage Client Credit to Maximize Cash Flow

07:59 04 February in Blog, Business Funding

Businesses often face significant financial challenges. Startup costs, hiring employees, use of contractors, and expenses with growth can quickly mount. As a result, companies often have a lower than expected credit rating. They may find it challenging accessing new lines of credit, despite meeting all of their financial obligations. Did you know you can use client credit to improve cash flow?

The lack of ability of a business owner to secure new lines of credit can cripple a company. Not only will it face obstacles to growth. It can often mean they will be unable to bid on more lucrative contracts. They simply lack the financial backing to fulfill the initial terms of the agreement. Additionally, businesses with little savings and staggered cash flow often miss out on opportunities presented by vendors to take advantage of lower costs of credit by paying their outstanding invoices at a discount with early payment.

A business with poor cash flow may not even be able to complete the projects or contracts they have taken on. When this occurs, it destroys the reputation of the business and future business opportunities diminish quickly.

Each of these circumstances can lead to additional cash flow problems and can keep a business from growing. They create situations where a company is only meeting its current financial obligations to employees, vendors, and clients. This is the time when business owners should consider the potential of leveraging their clients’ creditworthiness.

Maximize Cash Flow Without Negative Credit Implications

Leverage matters in business. Whether you are negotiating a contract, working with a contractor, or finding a consultant, the more information you have at your disposal, the better your opportunities for successful negotiations. Leverage also works when you are considering your financing options.

Some company owners fail to realize they can leverage their clients’ credit standing to help improve their own credit. This maximizes their cash flow and avoids incurring additional debt. Specifically, a company has the option to take their client invoices and turn those invoices into immediate cash. However, it is also possible to use the creditworthiness of a client to help improve other forms of financing. This includes obtaining lines of credit.

Lines of Credit and Strength of Leverage

Larger contracts that are not supported by your balance sheet may necessitate a line of credit. Bringing on additional investors can dilute your portion of ownership. Rather, you can apply for a line of credit based on the creditworthiness of the contract which you agree to. This means the stronger your client, the more likely you are to gain approval. For example, some small and disadvantaged businesses may have access to lucrative government contracts. However, because of the size of the business, they may not have a balance sheet that proves they can meet the terms of the agreement. Leveraging the strength of the contract of the U.S. government can provide access to lines of credit or other financing options.

This type of leverage does not just apply to those who are eligible for government financing. Staffing agencies, construction companies, and other firms that have contracts with top companies have an opportunity to use those contracts to increase their cash flow immediately. This is where Capstone comes in.

At Capstone Capital Group, LLC we understand the struggles company owners can face when trying to grow their business. A vicious circle begins nearly immediately. You need capital to meet your day-to-day obligations, but you also need access to capital to help facilitate that growth.

Capstone takes your growth seriously. Our representatives are well-versed in various markets, and we take the time to understand your company goals. Once we have a complete understanding of your goals, we can help put a custom financing package together. One which fully leverages the creditworthiness of your clients and helps put you on a path to continued company growth. To learn more about Capstone and the programs we offer, contact us at (212) 755-3636.

You can also email [email protected]. Let us help you find the right financing program to meet your needs, including improving your cash flow.

Purchase Order Funding

Fund Large Orders with PO Financing

07:59 28 January in Blog, Business Funding

Nearly all companies, regardless of size, want to grow their business. Accepting orders can help you grow your business. However, if you lack the capital to fulfill the order, this can be problematic. At a minimum, large orders require an expenditure of capital to purchase supplies. Large orders may require a business to hire new staff members or purchase equipment, often an issue. What many business owners overlook is the potential to access the capital they need through purchase order financing.

What is Purchase Order Financing?

Purchase order financing or funding is a commercial loan option that some businesses turn to for necessary capital while growing. Generally, this type of financing is considered short-term and does not have a negative impact on the balance sheet of a company.

Companies typically use purchase order funding in specific business categories including:

• Distribution Businesses
• Import and Export Businesses
• Manufacturing Businesses
• Wholesale and Reseller Businesses

Other businesses may overlook PO financing, including concrete, landscaping, HVAC, and plumbing contractors that may be eligible. Staffing agencies may also find that the new purchase order they are considering is eligible for PO funding. Anyone who is considering providing any type of deliverable, with a pay period of 60 to 90 days, may have the option of using PO funding.

The basis for this type of innovative financing is that once a business has a qualified purchase order, it can borrow money against the terms of the PO. It can then use those funds to provide upfront payments to suppliers, ramp up production schedules, or meet other financial needs.

Advantages of PO Financing

Business owners who are interested in growth must be able to bid on larger orders and have the means of fulfilling those orders. PO funding means a company can get the working capital it needs to support increased sales efforts. This increases product availability and provides more favorable credit terms to its customers.

Another distinct advantage of having the ability to borrow money against a large purchase order is you can more effectively compete with other businesses in the same field, regardless of size. For small businesses that are seeking ways to “stand out” from the competition, the ability to bid on large orders can make a big difference.

Effectiveness of Purchase Order Financing

Too often, a small but growing business lacks the necessary capital to take on large orders because it does not have the required cash flow to meet the customer’s terms. This can stifle growth. Unfortunately, these same businesses may not have access to lines of credit or have the ability to borrow money through their bank.

Purchase order funding allows a company to take on a larger contract because it does not have to borrow money. Instead, it is getting the financial benefits of the new agreement.

Time from Application to Funding POs

Unlike traditional bank loans, companies can obtain purchase order financing in a relatively short period of time. Capstone’s process for PO funding means your request could be approved in just a few business days. Once approved, the time to wait for financing could be as little as three business days. This is a far different timetable than banks where funding your loan application could take weeks or months.

As a small or mid-sized business, you often do not have the required capital on hand. You don’t always have access to the capital you need to bid on larger contracts or to take on large orders. Because of this lack of funding, you could lose your competitive edge. Rather than bypassing growth opportunities, contact Capstone by email at [email protected] or call us at (212) 755-3636. Let us help you take advantage of larger orders, which can help you accelerate your company growth.

Business Broker Benefits

Why Working With a Business Broker to Sell your Business Matters

08:09 23 January in Blog

When the owner or owners of a company are considering selling, they often believe the best method is to work on securing a buyer on their own. However, in nearly all cases, using a broker to sell your business is the better option. There are several advantages to working with a reputable business broker, some of which include:

Matters of Confidentiality — One of the challenges you will face is keeping your company information confidential during the sales process. Confidentiality includes maintaining corporate insider information which, if released publicly, can damage your company’s future. Business brokers will typically only release information about your company to those whom they know are financially able to purchase your business. Additionally, a business broker can keep the name of your company from potential purchasers, which helps protect owners.
Maintaining Internal Focus – The last thing you want is to have a potential sale disrupt internal processes. The focus of you and your team should always be continuing to provide the highest quality service to your customers. Should you be distracted by continually having to follow up with potential buyers, business growth takes a back seat.
Contacts Matter When Selling – Chances are your network of other business ventures who are interested in buying another company is limited. However, business brokers act as intermediaries for numerous businesses that have other contacts. Since a business broker is always acting as an intermediary, they likely have a more extensive contact base. This means your proposal will get in front of more people in less time than if you were attempting to sell on your own.
Price Tags: Business Valuations – Let’s face it, we work hard to establish a robust business, yet we typically do not know its real value. We understand what we have in terms of business, inventory, and goodwill. Putting a price tag on a company is a different matter. Business brokers offer a level of expertise that we often do not possess on our own. They can evaluate a business accurately based upon applicable variables considering the industry, sales, and age of the company. Other variables may include a client base and other relevant information that make a business appealing.
Closing and Transition – One of the concerns any business owner has when selling a business is the potential for disruption after finding a buyer. Business brokers have extensive experience assisting in the timely closing of a business sale. They also ensure a smooth transfer of ownership with little disruption to supply chains, employees, and clients.

Finding the Right Broker Also Matters

Keep in mind, not every business broker will be able to help you with your quest to identify another buyer. You will want to find a business broker with experience in your industry and who has worked with comparably sized companies. Experience, expertise, and ethics all matter as well. Make sure your business broker has a solid reputation within the industry before you agree to any contracts.

Buyers and sellers often do not understand the marketplace nor the processes necessary for a successful business sale or purchase. Working with a broker to sell your business provides you with the necessary skills and expertise. It enables you to continue to work hard to develop your company. It is critical to maintain a focus on growth and the future, which can only improve the value. You do not want to lose focus on your business while you are attempting to sell and jeopardize its value.

Maintaining a steady cash flow, staying current on your financial obligations, and growth during the sales process are essential. Capstone Capital Group can help you retain the cash flow you need during this critical period. For more information on Capstone, please call us at (212) 755-3636 to speak with a representative about spot factoring, and other financing programs, which can help you maintain the value of your company during this crucial time.

music royalty funding

Musicians and Songwriters: Access to Royalties Faster Through Factoring

09:46 29 October in Blog

Musicians and songwriters often depend on their income derived from royalty payments to cover living expenses. The problem with royalty income is the time between knowing what royalties are due and receiving the actual payment. The span of time between notification of royalties due and receipt of payment can be as long as 90 days.

Even after this initial waiting period, collecting ongoing royalty payments involve substantial waiting periods since artists often work with some who pay quarterly, others pay twice a year, and still others pay annually. This is problematic because let’s face it, while waiting for your royalty payments, your bills are not going to stop arriving and your due dates are unlikely to change.

Improving Your Bottom Line

One of the options you have available is selling off your intellectual property for an upfront lump-sum payment against your future royalties. The problem with this is once you do that, you often lose the rights to the underlying song(s). Some of these transactions involve turning over all the rights you have to future royalties. Imagine losing future income for the potential of getting cash today to pay taxes, your mortgage, or to help make sure your child’s tuition is paid for.


What Capstone Does Different

No one knows better than you when your royalty payments can be expected. However, if you do not want to wait for months to collect on those payments, you are probably looking for options. Capstone offers an option we are sure you can live with. Here’s what we can do for you that others may not be willing to do:

  • You retain the rights to your music
  • You decide which royalties you want to use as collateral for cash advances
  • You get cash against your royalties in as little as a week from an application being approved
  • After the first transaction, you can use your royalties as often or as little as you choose and funding can occur within 24 to 48 hours of your request.

You might be wondering how any of this is possible. That’s because at Capstone, we have built our company on serving those industries that banks can no longer service due to regulatory changes.  If you are in one of those industries you may have few options to access the working capital you need.

Never Again Worry About Cash Flow

We know that when cash is a problem you are often forced to borrow from friends, family, or take out loans with onerous interest rates just to make ends meet. Our goal has always been to make sure we are offering services to those who might not find a bank is their best option for getting immediate cash.

At Capstone, we help those who need immediate cash flow for paying taxes and other bills. We will work with you to leverage the royalties you are anticipating in a way that is most feasible for your needs and you always retain complete control over the process.

Whether you need to fulfill a one-time need, or you are looking for a long-term cash flow based on your royalties, Capstone can help. We will take the time to understand your goals and your needs and help put a plan in place that helps you fulfill them. No more worrying about whether you can meet your next month’s financial needs, no more guessing whether a royalty check will arrive in time to pay the next tax bill, and no risk of losing your intellectual property rights.

Capstone is here to help! Learn more about our innovative way to obtain instant cash flow for royalties factoring for musicians. We can help you ease your cash flow concerns today. Contact us at (212) 755-3636, or fill out our online contact form. Let us show you how simple this process can be and help you get access today for the royalties you have worked so hard to develop.

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