CapitalPlus Construction Services offered a growing Texas general contractor a $2 million facility, with the deal including CapitalPlus’ Accelerated Payment Program. The general contractor knew its subcontractors could not handle the payment terms trickled down by the owner, but liked the company’s work and did not want to lose it to other projects. The general contractor understood that even though it would slightly lower its margins, a factoring company would be the best fit for its subcontractor’s timely needs. The company understood that it would ultimately grow faster by utilizing a combination of CapitalPlus’ APP service, reliable subcontractors and dependable vendors. As a result, the company’s subcontractors have been thrilled with being paid early and are willing to commit to more work while the general contractor continues to grow at a rapid pace.
CapitalPlus recently offered a Texas-based developer a $1.5 million material financing facility. The developer understood that even though it would absorb CapitalPlus’ fee, it would still be significantly cheaper than having its contractors purchase materials independently. By purchasing all materials via CapitalPlus on the project upfront, the company could take advantage of supplier discounts, control the delivery timing and not have to worry about subcontractors marking up the materials.
