- What type of financing does Capstone offer?
- How does the purchase order program function?
- What type of business can use this program?
- At what point is the client committed to use Capstone's funding commitment?
- How quickly can funding be arranged?
- Is Capstone a lender or a broker?
- Who may need Capstone's services?
- What are the typical prospect characteristics?
- What don't we fund?
- What other types of asset funding can be arranged?
- I am currently at an existing lender and have reached the credit limit of my borrowing facility; can Capstone help my company?
1. Capstone offers various financing tools and programs that help facilitate a company’s growth.
Our purchase order or trade finance programs coupled with our other programs help fund sales transactions — up to 100% of the capital requirements. Most commonly, these transactions start in the form of a written purchase or sales order from your customer for specific goods. Typically our clients find themselves in one of three situations:
- Growth is outpacing available working capital
- Seasonal sales spikes or growth spurts put a sudden strain on cash flow
- Working capital is not readily available from their current lender
2. How does the purchase order program function?
Purchase Order Financing can be used to finance the purchase or manufacturer of specific goods that have already been sold. We enable this process by issuing letters of credit or providing funds that allow our clients to secure the inventory they need to fill their open sales orders. We customize each lending program to a specific business situation, taking into account your long-range objectives and opportunities for growth.
3. What type of business can use this program?
Purchase Order Financing is used by manufacturers, distributors, importers, and exporters. It can be used for payments to third-party suppliers for goods, issuing letters of credit, and for making payments for direct labor, raw materials, and other directly related expenses. Current customers are in the following industries:
- Wine
- Apparel
- Jewelry
- Food
- Machinery
- Environmental
- Importers
- and many more
4. At what point is the client committed to use Capstone’s funding?
Capstone will only offer a commitment letter to a funding arrangement if there is a high probability of closure. There are no “front fees” required to receive a commitment letter. Once a commitment letter is signed by the client and a “due diligence fee” is paid, Capstone will then complete the due diligence and prepare closing documents according to the terms of the commitment letter. Once the deal is signed at the closing, the client is then committed.
5. How quickly can funding be arranged?
Capstone is known throughout the industry for being fast and efficient. With sufficient information, the typical turnaround time from the initial conversation to receiving the needed funding is about 2-3 weeks.
6. Is Capstone a lender or a broker?
Capstone is a direct lender and, as a result, all credit inquiries are handled quickly and efficiently. Along with our sales team, all decisions are made in-house with the principals; there is no need to go through time-consuming credit committees.
7. Who may need Capstone's services?
We offer funding to companies that:
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Are growing rapidly and have maximized their bank lines of credit and need additional capital
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Are currently in workout at their bank and the company is seeking alternatives
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Have filed or are about to file bankruptcy
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Are looking for short-term sales transaction financing, instead of selling equity
8. What are the typical company prospect characteristics?
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Must sell their products or provide services to credit-worthy commercial clients
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Annual sales volume should exceed $1,000,000.
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GM of at least 20%
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Has working capital strain due to insufficient credit lines or rapid growth
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Trade cycle of 60-150 days, or more
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Losing sales and missing sales opportunities
9. What type of companies/ deals do we NOT fund?
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Companies with consignment sales, pre-billing or progress billing
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Construction deals where the general contractor will have a first lien
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Third-party medical deals (the receivables are paid by Medicare/Medicaid)
10. What other types of asset funding can be arranged?
In addition to Purchase Order Funding, Capstone can also provide working capital secured by inventory, receivables, machinery and equipment, or other forms of acceptable collateral.
11. I am currently at an existing lender and have reached the credit limit of my borrowing facility. Can Capstone help my company?
Capstone, unlike conventional lenders, has the specialized ability to assist both turnaround and fast-growing companies with “tailor-made” financing solutions, which include distressed debt. Moreover, since Capstone is not a bank, many banks send their clients to us to get the funding and assistance they need, while maintaining their current deposit account relationship, if they choose.
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