CapitalPlus Construction Services, a provider of accounts receivable financing for the construction industry, launched a materials financing product to help contractors and subcontractors in all trades access mission-critical materials without tying up their capital.
“The cash flow of companies in the construction industry was hit hard by the pandemic, with many projects paused or canceled outright,” Scott Applegate, president of CapitalPlus Construction Services, said. “Contractors are often required to purchase materials upfront but can’t invoice for them until month’s end or the end of the job. At the same time, suppliers require payment on delivery or within days of placing the order, causing cash flow constraints.”
The CapitalPlus materials financing product will enable contractors and subcontractors to order the materials they need to stay on or ahead of schedule. CapitalPlus will purchase materials on the contractor’s behalf, the order will ship directly to the job site and contractors will have extended terms to repay CapitalPlus.
“We’re excited to offer another financing solution to enable construction companies to free up working capital and grow,” Applegate said. “With materials financing in place, they can take on larger jobs, take advantage of vendor early payment discounts and improve their supplier relationships, all without impacting any existing bank relationship or loan.”