Unlock funding for your sustainable energy projects with invoice factoring. Capstone understands the financial components and risks associated with project financing and is focused on providing capital to support our client’s green energy goals.
Contractors and subcontractors working on green and renewable energy projects often feel a cash flow pinch due to the lengthy time it often takes to procure materials, install them and get paid for completed work.
In addition, many alternative energy companies that sponsor renewable energy projects are fairly new to the market and can struggle to get business loans or other traditional forms of financing. In many cases, this limits the ability to take on additional work and establish credit.
Invoice factoring is a great way for contractors and subcontractors to get paid fast so they can better manage their supply chain, operating expenses and cash flow. Rather than resorting to debt financing, raising equity, or jumping through hoops for business loans in a volatile economy, contractors and subcontractors can convert invoices into cash quickly using factoring for sustainability projects.
Invoice factoring enables businesses to monetize their accounts receivable as soon as invoices are generated instead of waiting for their customers to pay their invoices. Contractors and subcontractors get paid right away while transferring the credit risk of collections to Capstone. This helps businesses accelerate their working capital.
Invoice factoring is available for alternative and renewable energy projects, including:
Factoring can be used to finance the supply chain, construction, installation, servicing, and any combination of these as it relates to alternative energy projects.
Capstone offers a variety of funding solutions to businesses for fast capital infusions, including invoice factoring, trade financing, and PO financing. When you work with the experts at Capstone, you can:
Capstone offers single invoice (“spot”) factoring for clients that do not require a multi-year contract. This allows you to sell only those invoices you want with no obligation to sell a minimum number of invoices.
Single invoice factoring allows you to pick and choose which invoices to sell when you need working capital. For example, many green energy companies find they need cash to buy equipment or materials at the start of new projects. Single invoice factoring gets you the funding you need to get started.
Once projects are complete, you can either continue to use invoice factoring on a regular or spot basis as you choose.
1You submit an invoice/ progress payment on work that has been completed
2The invoice is verified with your client
3Capstone provides immediate funds
4Your client remits payment within their payment terms which is typically 30 to 60 days
5Capstone issues a rebate for the remaining reserve balance, less the factoring fee
For companies that need ongoing invoice factoring, Capstone also provides discount factoring services using accounts receivable assets as collateral. Typically, Capstone will purchase each invoice and then provide working capital advances, holding a small portion of the invoice amount in reserve. Capstone handles the collections process. When your client pays the full amount, the reserve is released to you, less a small commission.
Capstone will manage the process and collections on invoices, but we are not a collections agency. Collection agencies can charge as much as 25% to 50% of the amount they get from chasing debts. We charge only a small commission against the face value of the invoice amount in exchange for taking on the credit risk. There are no extra fees to help you collect on your invoices, it’s all included in our factoring fees.
Does any of this sound familiar?
For these reasons and more, green and alternative energy companies turn to Capstone.
Invoice factoring can be a more convenient alternative to other types of third-party funding sources that typically structure green energy project finance through debt financing or by raising equity. Capstone has provided its clients, from many diverse industries, with funding for their green and renewable energy initiatives and can tailor a program for your sustainability project.
