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.

Indianapolis Manufacturers Express Concern Over Presidential Trade Platform

16:03 15 August in Blog

In a state where manufacturing is an economic support beam, Indiana businesses are growing more and more concerned over the presidential race’s implications for trade.

Former IN Governor Mike Pence ran his 2012 gubernatorial campaign on a strongly pro-trade platform and voted for every available free trade initiative during his House of Representative’s tenure. However, his alliance with presidential running mate Donald Trump — who has strongly condemned international trade agreements — now has businesses skeptical of his commitment to their interests.

The other side of the aisle presents little comfort, given Democratic nominee Hillary Clinton’s recent sharp trade critiques. In an August statement to The Indianapolis Star, local international sales manager Nate LaMar expressed a concern that both presidential candidates wanted to “turn back the clock” on trade systems.

The big question is this: what impact would revisions to long-standing international trade deals like NAFTA have on small businesses and manufacturers – especially those in states like Indiana.

Local Economics to National Concerns

Indiana has the highest distribution of manufacturing professionals in its workforce among American states. It also owes a great deal of its post-Great Recession recovery to a rebound in exports in products like pork, corn, and soybeans. Economists say that the state’s high level of factory competitiveness led to this advantageous performance after the North American Free Trade Agreement (NAFTA) opened up Mexican markets.

Changing Tides

Pence’s pro-trade convictions have taken on some damage in recent months, beginning with Indianapolis heating giant Carrier Corp.’s relocation to Mexico. After accepting the Republican vice-presidential nomination, Pence receded from his previous stance: he has now backed away from both NAFTA and the Trans-Pacific Partnership (TPP), an agreement that would lower trade barriers between America and a host of nations. For Indiana exporters — many of whom are owned or invested in by Japanese entities — this reticence signals a worrying lack of concern for his former constituency’s best interests.

Pence explicitly distanced himself from the TPP on the Laura Ingraham radio show, stating that it was time to “rethink” NAFTA’s implications and “hit the brakes” on TPP, dealing with Asian and Pacific Rim countries on a case by case basis to “promote growth.”

As a more “isolationist” wave sweeps the nation, manufacturers across the country will have to hope for the best, but prepare for the worst. For now, all eyes are on the presidential election.

Accelerate Your Working Capital with Capstone

For qualified clients, Capstone provides single invoice factoring, purchase order factoring and full-contract factoring for work performed under contract with credit-worthy accounts. We have highly experienced professionals on staff to facilitate the purchase of work in progress and progress billing-related accounts receivable. Please visit our homepage or contact us directly for more information.

Number One Threat to Long-Term Economic Growth - Explained by Capstone

This is the Number One Threat to Long-Term Economic Growth

12:10 07 August in Blog

Amid positive job reports and a surging stock market, one factor still presents a major obstacle to long-term economic growth in the US: a persistent slackening of productivity. We are currently in the midsts of the longest downward slide in worker productivity since the 1970’s, an unfortunate asterisk that should accompany the latest round of job reports. It’s also likely to keep the Fed from raising interest rates any time in the near future.

Productivity by the Numbers

Productivity — the measure of what goods and services a worker produces each hour on the job — fell 0.5% at a seasonally adjusted rate during the second quarter, according to the Labor Department. That marks the third consecutive quarterly drop in productivity, the longest streak since 1979. What’s worse, the trend shows few signs of abating; productivity growth rang in at just 1.7% from 2007 to 2015, half that of 2000 through 2007.

Why Worker Productivity Matters

For business owners, the importance of worker productivity can’t be understated. The equation is simple: less productivity means more expenses and less profit. On a macro level, productivity is a key gauge in measuring wage growth, prices, and overall economic output — which have all been falling as well.

What’s Killing Productivity?

According to numerous studies, lagging productivity has several culprits. Among the most important are businesses unwillingness to invest in new equipment, machinery, and equipment — the raw materials that translate directly into job growth, wage growth, and gains in worker efficiency and productivity. While the exact cause of lagging productivity is difficult to nail down, it’s worth noting that fixed nonresidential investment, the meat and potatoes of business spending, has also dropped the last three quarters along with productivity.

That lack of investment has lead to a decline in new orders for nondefense capital goods on a year-over-year basis for much of the last year and a half.

What’s the Solution?

As we mentioned in our most recent blog, the majority of US manufacturers are small businesses — and many find themselves sorely lacking the working capital needed to invest in their businesses, jump-start productivity, create backlogs, and grow. As a low-risk remedy, manufacturers and other small businesses with strong demand for their products use invoice factoring to boost their cash flow. That’s where Capstone can help!

Grow Your Business with Capstone

For qualified clients, Capstone provides purchase order factoring, single invoice and full-contract factoring for work performed under contract with credit-worthy accounts. We have highly experienced professionals on staff to facilitate the purchase of work in progress and progress billing-related accounts receivable. Please visit our homepage or contact us directly for more information.

About US Manufacturing - Capstone Financing

4 Things You Didn’t Know about US Manufacturing

09:37 15 July in Blog

As we discussed in a recent blog, US manufacturing is alive and well—despite what many people may think. Following up on that piece, we are happy to give yet another positive update from the manufacturing sector.

The stars have aligned for US manufacturing in July, with domestic demand strengthening and offsetting the relative strength of the US dollar. US manufacturing activity hit a 9-month high in July, dispelling fears that the UK’s decision to leave the EU would hurt the already poorly performing sector. Factors that are boosting US manufacturing activity include a strong housing market, strong automobile demand, and solid consumer spending: all of which help to increase spending on manufactured goods.

US Manufacturing: Down and Out or Just Different?

It’s true that today’s manufacturing landscape is quite different from that of 1950. It’s even changed significantly since the year 2000, having shed 5 million jobs since the turn of the century. But what many people don’t realize is that it’s not only US manufacturing that’s being transformed. Technological advancements have made it possible to increase production with fewer workers. The end result is a strong (albeit much quieter) manufacturing sector that increasingly relies on tools like invoice factoring to increase working capital and expand business.

Surprising Facts about US Manufacturing

Here are four things you probably didn’t know about US manufacturing.

Most US manufacturing firms are small; 75% have less than 20 employees, and 99% have less than 500.
The US boasts 12 million manufacturing workers —9% of the entire workforce
The average manufacturing worker earned over $4 more an hour than the US average — $25.58 compared to $21.32.
Many manufacturing companies use invoice factoring to boost cash flow and expand their business

Boosting Working Capital with Capstone

For qualified clients, Capstone provides single invoice and contractor factoring for work performed under contract with credit-worthy accounts. We have highly experienced professionals on staff to facilitate the purchase of work in progress and progress billing-related accounts receivable. Please visit our homepage or contact us directly for more information.

Novel Way for Subcontractors to Find Financing from Capstone

A Novel Way for Subcontractors to Find Financing

20:13 11 May in Blog

2015 was a picture-perfect year for construction, a banner year for the post-recession. Yet in 2016, many contractors in the United States are struggling to find financing for construction projects.

The lack of financing has been a reality even over the past several years with the economy recovering by leaps and bounds. It was a reality throughout the housing crisis and even prior to the recession when construction and development were booming. Contractor business financing has been a struggle, but it’s clearly nothing new.

Banks’ Aversion to Construction Financing

Banks are perennially gun-shy when it comes to lending to construction firms. They cite the industry’s volatile revenue fluctuations, the unpredictable nature of construction, contractors’ sensitivity to economic cycles, and excess competition as reason to stay away. The recent failure of several prominent construction firms has only strengthened banks’ resolve to avoid offering lines of credit to construction firms, contractors and subcontractors.

Contractors & Underwriting Issues

Steady bank relationships are often out of reach for construction firms with a poor ratio of accounts receivable to accounts payable and limited liquidity in working capital. But when construction firms and contractors struggle to find financing, subcontractors tend to suffer even more. Banks are hesitant to allow subcontractors’ bonded accounts receivable to serve as collateral for lines of credit, and those who primarily engage in bonded work often find it difficult or impossible to provide additional collateral.

Is there any hope for subcontractors in today’s construction industry?

Factoring: A Solution for Subcontractors

Factoring is a finance technique that allows a company to leverage its accounts receivable and accelerate its working capital through the sale of its accounts receivable to a third party. Specifically, a factor gives a business an advance on a customer invoice — generally between 70 to 90% of the invoice amount – so they can create a backlog of work without equity or debt financing. As the company improves their balance sheet, they increase the likelihood of receiving a traditional line of credit from a bank.

Seize Opportunities for Growth with Capstone

For qualified subcontractors, Capstone offers contractor financing and provides a single invoice and full-contract factoring for work performed under contract with a creditworthy general contractor. Capstone has highly experienced construction professionals on staff to facilitate the purchase of construction-related accounts receivable. To learn more about our contractor business financing and other services, please visit our homepage.

Bank Loan or Invoice Finance: What’s Best for You?

21:53 04 September in Blog

Here is the situation: unexpectedly, you receive a huge product or service order. Besides the huge profit you’ll net by filling the order, you’ll also be establishing a business relationship with a desirable client. There’s just one problem: you don’t have the funds to buy the materials or pay your workers to complete the order!

Do You Really Need a Loan?

It’s in situations like this that business owners don’t hesitate. Nobody likes the notion of going into debt, but small business owners know that it’s part of the formula for success. The order is more important to the business’s future than going into debt. Taking calculated risk is what sets them apart from less enterprising individuals. The question is, should you get a bank loan or a get funding from personal invoice financing?

Bank loans are probably more common, but that doesn’t make them better. Until recently, taxis were the only way to get from point A to point B if you didn’t have a car, and hotels and motels were the only place to stay if you were in from out of town. There was a need in the market for alternatives, and Uber and Airbnb filled the niches. The same is true with single invoice finance.

Though bank loans are more common, single invoice finance offers some distinct advantages that you should know before making your decision.

Advantages of Single Invoice Finance

• Receive funding immediately
• Bank loans can take several weeks for approval, whereas single invoice finance can get you funds within 24 hours.
• Repayment is made by your customer
• Less paperwork
• Use only the invoice you are factoring for collateral
• Fewer fees
• Your credit is not important, your customer’s credit is important
• Once your customer pays the invoice, the contract is terminated.
• Won’t show on your balance sheet

Selling an invoice is selling money that technically belongs to you. It’s your asset, and therefore it doesn’t have to be noted on your balance sheet.

Get in touch with Capstone Capital Group and get in the game with factoring, funding, and financing. For more industry insights, read our previous blogs.

Grow Your Contracting Business Efficiently and Profitably

17:58 22 July in Blog

Have you considered making an investment for growth, but don’t feel that your company is quite ready?

Capstone Capital Group, LLC and Trend Consulting Group have partnered to offer their clients an additional layer of financial and management support. This additional support is designed to help their clients increase their scale of operations efficiently and profitably.

Our primary goal is to help our clients accelerate and achieve their growth initiatives on a profitable basis. The two prong approach will sustain our client’s growth in the long term. To accomplish sustainable long-term growth most companies require competent management and additional capital. Our additional layer of support provides both essential ingredients to our clients’ success.

Today’s Real Estate and Construction Markets require a high level of performance from contractors. With elevated performance levels our client’s resources are stretched thin. We have found that without proper funding and management support most growing contractors are left with two options neither of which should be acceptable to companies that are trying to grow profitably

ONE

Turn down new business and increased demand from existing customers because your company is at capacity and does not possess the capital, internal process, nor the project management in the field to confidently deliver on your contractual obligations.

TWO

Accept more new business than your company can handle only to realize your existing clients will suffer and that you’ve set your company up for losses, negative brand impact, and a reactive business model which typically leads to insolvency or in some cases much worse!

The Goal of our partnership is twofold:

1. To give our growing clients access to the funding they need when they need it through Capstone’s flexible single invoice factoring and funding solutions.

2. Deliver effective project management outsourcing solutions through Trend’s comprehensive reporting, process, documentation, and effective field management model.

This one two punch of strategic resources is designed to ensure you are well prepared to grow your business effectively and profitably while boosting your company’s brand and reputation.

Capstone deploys Single Invoice Factoring Programs to fund General Contractors and Subcontractors to ensure on time performance of tasks. Capstone specializes in Single Invoice Factoring (“Spot Factoring”) for firms in need of immediate cash. We provide flexible, no contract invoice purchases in exchange for working capital. Our highly experience construction professionals are on staff to facilitate the purchase of construction related accounts receivable. They have operated on job sites as project managers, so we understand how critical it is to have available funds for payroll, suppliers and operating expenses. Knowing that Capstone will purchase your invoices provides you with the confidence to bid on new jobs and grow your business.

Trend strives to improve our client’s overall experience while engaging in a new construction project(s). Our goal is to change the “USUAL” way construction projects are managed and improve the process through our comprehensive project management services. We put a heavy focus on process and documentation while managing our client’s projects. This is accomplished by incorporating our cloud based project management software to help boost overall project efficiencies. Our service also includes automated reporting capabilities to ensure all parties are well informed every step of the way throughout the duration of their project.

We look forward to hearing from you.

Lawmakers Continue to Turn Up The Heat On Big Banks

20:49 16 October in Blog

In a recent hearing before the Senate Banking Committee, lawmakers continue to call for increased regulatory reform from regulators in an effort to reduce the risk big banks pose to the U.S. financial system.

A distinction was made between large banks and other financial institutions. Several senators encouraged regulators to lessen the burden, or possibly exempt, certain insurance companies and small to midsized banks from aspects of Dodd-Frank.

Sen. Bob Corker (R., Tenn.), for instance, called on regulators to take whatever steps necessary to make certain these banking institutions are not too complex so as not to be resolved through bankruptcy.

Other senators praised the Federal Government for promising to raise the capital requirements on the largest U.S. banks. According to Sen. Sherrod Brown (D., Ohio), there is a great deal of support in both the house and senate to implement stronger capital standards. Such standards could require big banks to retain additional earnings in order to build capital they would use to fund lending rather than allocating such earnings to their shareholders.

Banking executives believe that capital rules for the largest U.S. banks are already too high.

The senators’ frustration regarding Wall Street banks were further expressed in the hearing by Sen. Elizabeth Warren (D., Mass.). She inquired as to why individual bankers were not being held accountable for their nefarious actions which lead to the financial crisis. Ms. Warren’s concern is that lack of criminal prosecution may send the message that you can break the law, get away with it, and receive a bigger paycheck.

With lawmakers continuing their efforts to put pressure on regulators to come down hard on banks, the ones that ultimately suffer are those looking to banks for capital. Individuals and small business owners who rely on bank financing may find it more difficult to obtain the loan they so desperately need in order to make payroll or expand their business.

As lawmakers continue to apply pressure on regulators to impose more stringent requirements on the banking industry, it is clear small business and working capital loans will become ever more difficult to acquire. Capstone Capital Group, LLC understands the concerns of commercial borrowers who are considering bank financing. Accordingly, we offer various business finance options, including “Single Invoice Factoring” which functions as a safer alternative to traditional, and often times unpredictable, bank financing.

Our underwriting guidelines are simple, straightforward and not subject to stringent regulatory oversight and control.Capstone Capital Group, LLC specializes in Purchase Order factoring, Single Invoice Factoring (“Spot Factoring”) for firms in need of immediate cash. Spot Factoring provides flexible, no contract invoice selling in exchange for working capital from Capstone Capital Group. Give us a call today to find out how we can help you.

Pulling Back the Reigns of Growth – Small Banks Restrain Progress Fearing Costly Regulations

14:55 08 August in Blog

Banks have come under intense scrutiny in recent years following the financial crisis that began in 2007. The regulatory pressure doesn’t seem to be letting up anytime soon as regulators attempt to reign in banks designated as “systemically important.”

According to regulators, systemically important banks are those which report assets of more than $50 billion on average for four quarters in a row. Once a bank has achieved this status, banks are required to comply with, among other things, stringent capital requirements, submit to yearly “stress tests” and to create processes for the winding down of a bank in the event of a crisis.

The purpose of placing a $50 billion asset threshold amount, according to regulators, is to keep a closer eye on banks whose potential problems could endanger the broader financial system. However, some critics within the banking industry argue the threshold is too low and that banks who come close to that amount are far from “financial giants”. This issue has caught the eye of Federal Reserve governor Daniel Tarullo, who stated in a speech that it might make more sense to increase the threshold from $50 billion to $100 billion for applying certain rules. The suggestion being that the “stress test” process seems unnecessary for banks under $100 billion.

As a consequence of these stringent and costly regulatory requirements, some small asset banks like New York Community Bank (NYCB), whose reported assets in the first quarter of 2014 was $47.6 billion, has come out with a statement that it is restraining its lending growth citing loans amount to assets. If other small banks, like NYCB, who are coming up to the $50 billion threshold limit decide to take a similar approach and restrain growth by curbing its lending practices, some borrowers, like small business owners, may have a more difficult time obtaining the necessary financing they need to maintain and grow their business. Fortunately, Capstone Capital Group, LLC has the solution.

Capstone Capital Group, LLC has been helping small to mid-sized businesses for years obtain the necessary working capital they need to sustain and grow during uncertain economic times without all the red tape you normally get from most banks. Capstone Capital Group, LLC specializes in Purchase Order factoring, Single Invoice Factoring (“Spot Factoring”) for firms in need of immediate cash. Spot Factoring provides flexible, no contract invoice selling in exchange for working capital from Capstone Capital Group.

Now Trending! Outlook is Good for Start Up Businesses in the U.S.

19:16 26 June in Blog

According to a recent report detailed in a publication entitled “Global Entrepreneurship Monitor”, 2013 was an optimal year for start up businesses. The report was based on a survey of adult American entrepreneurs between April and June of last year. The report reflected a steady increase of new business creation since the recession leading up to 2014.

A Washington, D.C. economist attributed increases in business creation with access and availability of startup capital, whether from banks, angel investors or family members. Likewise, in a downturn where credit markets are frozen and capital is more difficult to come by, this consideration is reflected in the overall number of startup ventures in any given period.

While the above reflects an optimistic outlook for budding entrepreneurs ready and able to start new business ventures, a different study, conducted by the Ewing Marion Kauffman Foundation (“Kauffman study”), painted an entirely different picture.

The Kauffman study, which based its data from the U.S. Census Bureau and the Labor Department, concluded a lesser percentage of new business startups were created in 2013; and an even lesser amount of startups were created in 2011 and 2012. A researcher for Kauffman attributed the conclusions of the study to the lower number of “new entrepreneurs coming out of unemployment” or “necessity-driven entrepreneurs” who, out of sheer necessity, are forced to start businesses because they are unable to find full time employment.

Despite the disparity between the two reports, there does appear to be a trend towards economic recovery in the U.S. and an aim by the government, factoring companies like Capstone Capital Group, LLC, and others to help new business start, grow and thrive. Capstone prides itself as a factor whose objective is to help its clients succeed. As your factoring partner, we offer commercial financing, single invoice factoring, which can provide you with the capital you need to accelerate your cash flow and help your business continue to grow and thrive in today’s market on a more flexible basis than other factoring companies.

Optimism in a free market society seems to be the catalyst which spurs economic growth in most cases. Let’s hope the optimism continues to grow and investment capital remains steady in years to come.

For more information on how Capstone can help, please email [email protected] or call (212) 755-3636 to speak with a representative today.

Download: Infrastructure Investment & Jobs Act – Contract Opportunities and Funding Analysis

Capstone wants your business to take full advantage of the opportunities (or use projects) available through the Infrastructure Investment & Jobs Act recently signed into law.