1. What financing tools are available to facilitate the growth of my company?
Capstone offers various financing tools and programs that help facilitate a company’s growth.
- Single Invoice Construction Factoring program
- Single Invoice Factoring Program for non-construction related accounts receivable
- ClearPay™ System – is also a tool that provides essential working capital to bonded general contractors
- Purchase Order and Trade Finance
2. What are typical characteristics of companies that can use one of Capstone’s Financing Programs?
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
3. How does the Single Invoice Construction Factoring Program work?
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.
4. What type of business can use Single Invoice Factoring this program?
Single Invoice Factoring can be used by staffing companies, product distributors, licensees, manufacturers, sales organizations, service companies, and importers.
5. At what point is the client committed to use Capstone’s Single Invoice Factoring?
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 payment of the $750 fee to cover costs. Any unused fees are returned to the client via the rebate system.
Single Invoice Factoring clients are free to sell one invoice or a schedule of invoices and have no long-term contracts or obligations to Capstone or minimum contract fees typically charged by Factors.
6. How does the Purchase Order Financing Program function?
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.
7. What type of business can use Purchase Order Financing?
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. Current customers are in the following industries:
- Food (non-perishable)
- Promotional Items
- Consumer Products
- Sports Equipment and many more
8. At what point is the client committed to use Capstone’s Purchase Order Financing?
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.