CapitalPlus is a factoring service with no commitment requirements and no hidden fees. It was founded in 1990 and works with many types of businesses, but it specializes in factoring for construction companies. They work with most B2B and B2G (business-to-government) companies. Not every factoring service will work with construction companies, or, typically, the factoring companies that do work with construction firms charge higher rates. If your business is based in construction, CapitalPlus is worth considering.
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CapitalPlus Rates and Fees
This factoring company advances 80% or more – depending on your business – of the invoices it buys from you. After CapitalPlus is paid by your customers, it funds the remainder of the invoice amount to you minus its fees, which vary based on your specific company.
You can factor invoices that are up to 60 days delinquent with CapitalPlus, which is typical in the construction industry. CapitalPlus can also factor however much you want to each month – this is rare in this industry and can be helpful to businesses that have several invoices they need to factor.
CapitalPlus does not charge startup or termination fees (and you're not locked into a contract); however, it only offers recourse factoring, which means that you are responsible for any unpaid invoices from your clients. If a client misses a payment, you are on the line for that amount, which could set you back significantly. Other companies we reviewed offer non-recourse financing, which does not hold you liable for missed payments.
Like other factoring companies we evaluated, CapitalPlus has very reasonable minimum requirements that don't exclude startups or smaller businesses from the financing they need to get by.
CapitalPlus does not evaluate your credit score, consider your yearly revenue or ask how long you have been in business. Rather, it evaluates your customers or clients to ensure they are creditworthy.
Also, CapitalPlus requires a minimum scheduled amount of $6,500, which may be more than your business needs.
Ease of Application
Approval time for CapitalPlus can take between 24 and 48 hours. You can apply on the company's website or download an application, which you can then fax or mail to the company. After you submit your application and complete the required paperwork, it can take up to three days to receive an advance on your first invoice.
Customer Service and Support
CapitalPlus offers a dedicated advisor to work with its customers, making it easy for you to get the answers and help you need. It also offers telephone support Monday through Friday from 8:30 a.m. and 5 p.m. ET.
We reached out to CapitalPlus to evaluate its customer service. We received prompt responses to our emails, but the customer service phone support was more upfront about their specific rates. Overall, we had a positive experience with CapitalPlus' support.
CapitalPlus' main drawback is that it does not offer non-recourse factoring, which means that if your customer doesn't pay CapitalPlus the invoice amount, you have to buy the invoice back, which could significantly disrupt your cash flow.
Additionally, CapitalPlus requires a $6,500 minimum schedule amount. If you own a construction company, this minimum shouldn't be an issue, though it can be somewhat steep for new or relatively small businesses.
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