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CapitalPlus invoice factoring review 2022

Good for startups that have a high volume of unpaid invoices.


  • Works with startups
  • Four types of invoice factoring available
  • Bad credit and previous bankruptcy OK


  • Invoices must be at least $20,000 for some new customers
  • Construction-based businesses only
  • Not upfront about potential fees


Min. Amount$50,000
Max. Amount$10,000,000
Loan TermVaries

Our take on CapitalPlus

CapitalPlus is unique because it works solely with businesses involved in construction. But overall, it's pretty similar to other invoice factoring products I've reviewed. You sell the right to payment for your invoices and pay a fee for the advance. It's not a loan per se, but it is a quick way to get working capital when clients are slow to pay.

It also offers financing for materials your business needs. But this process is less clear than invoice factoring, and you may need to work with one of its suppliers to get the best deal.

And while it does work with startups, you'll need to have accounts receivables of at least $20,000 to qualify for most of its products. If you don't, there are likely better factoring companies out there.

CapitalPlus invoice factoring

CapitalPlus offers four types of invoice factoring, and while there are minor differences between your options, they all work the same way. You sell payment rights to your unpaid invoices to CapitalPlus, and the invoices are used as collateral.

When you do this, your small business will receive 75% to 80% of the invoice amount. Then once your client pays CapitalPlus, you will receive the remaining invoice — after fees are subtracted. But if you're looking for fees, you may need to do some deep investigating. I called for information on CapitalPlus's fees and was unable to get a clear answer.

Like many invoice factoring companies, CapitalPlus offers recourse financing. If your client fails to pay, you're on the hook for the advanced amount. However, there are cases where CapitalPlus will offer nonrecourse funding. You can work with your account manager to see if it's available for your business.

Most importantly, you'll decide which invoices you want to sell the payment rights for. This helps you manage client relationships and still get paid for big contracts without having to wait the normal 30 to 90 day period.

Breakdown of each invoice factoring option

There are four categories of invoice factoring through CapitalPlus.

Construction factoring is meant for larger businesses that have accounts receivables of at least $50,000. CapitalPlus does offer factoring up to $10 million.

Spot factoring works the same as construction factoring, but there is no minimum invoice amount. This makes it good for small businesses that may not have the same invoice capacity as bigger construction companies.

Government contract factoring gives you access to 60% to 70% — slightly lower than other options — of your invoice when you're working as a government contractor. CapitalPlus states that it is registered with the US Federal Government Systems Award Management to help you navigate the process of invoice factoring when you have a government contract.

Contract factoring is designed for long-term contracts. Unlike CapitalPlus's other options, contract factoring requires you to sell the right to payment for all the project's invoices. By doing this, you'll have access to lower rates and support throughout the length of your project.

Invoice factoring rates, fees and terms

While CapitalPlus claims to be transparent about fees, it isn't up front on its website. However, it does state that its fees are all inclusive. This means that the fee is set when your invoices are factored — and you won't be surprised by additional fees during the process.

CapitalPlus bases its fee structure on how many invoices you plan to get advances on each month, the amount your invoices total to, average payment terms and the credit of your client. There are no long-term obligations, but the more frequently you get advances on invoices, the more likely you are to receive a competitive rate.

You can expect to pay an establishment fee when you get advances on your invoices. And if you sell payment rights on over $500,000 in accounts receivable during the month, you may pay an additional underwriting fee.

CapitalPlus materials financing

Materials financing, also called supply chain financing, allows you to purchase materials through CapitalPlus for your subcontractors. This can be useful if you have limited invoicing capacity but need materials to complete a project.

Materials financing rates, fees and terms

CapitalPlus doesn't provide set rates for this service, but its terms and conditions state that you'll have 30 days to pay the seller back once you've received your bill.

Exact terms likely depend on the materials you need to buy and your relationship with CapitalPlus. Reach out to its customer service team for a specific quote based on your business's needs.

How CapitalPlus compares to other lenders

CapitalPlus is a short-term lender that works exclusively with businesses in the construction industry. If you fall outside of this — or need a different form of financing that doesn't rely on your invoices — check out these alternatives.

Name Product Filter Values Min. Amount Max. Amount Requirements
Biz2Credit business loans
up to $6 million
up to $6 million
6+ months in business; $100,000+ monthly revenue; 500+ credit score
Get only the capital you need through secure, prescreened lenders with this highly rated company offering SBA, expansion, working capital and other loans.
OnDeck short-term loans
600+ personal credit score, 1 year in business, $100,000+ annual revenue, active business checking account
A leading online business lender offering flexible financing at competitive fixed rates.
Fora Financial business loans
6+ months in business, $12,000+ monthly revenue, no open bankruptcies
Get qualified for funding in minutes for up to $500,000 without affecting your credit score. Best for companies with at least six figures in annual revenue.
Lendio business loans
Operate business in US or Canada, have a business bank account, 560+ personal credit score
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.
ROK Financial business loans
Eligibility criteria 3+ months in business, $15,000+ in monthly gross sales or $180,000+ in annual sales
A connection service for all types of businesses — even startups.
Fundbox lines of credit
6 + months in business, $100,000+ in annual revenue, 600+ credit score
Get flat rate, short-term financing based on the financial health of your business, not your credit score.

Compare up to 4 providers

CapitalPlus reviews and complaints

BBB accredited Yes
BBB rating A+
Customer reviews verified as of 30 July 2021

CapitalPlus doesn't have any customer reviews on its Better Business Bureau (BBB) page. This isn't surprising considering how limited its scope is, but it does make it difficult to know how well its invoice factoring service performs.

Because of this, I recommend reaching out to CapitalPlus directly to ask questions and get to know its staff. And ask other business owners in the industry. The more research you do on the front end, the better you'll be able to decide if CapitalPlus is right for your small business.

How to qualify

CapitalPlus doesn't have any hard and fast rules about what businesses qualify. But there are still a few minimum requirements you'll need to meet.

  • Total invoices valued at $50,000 or more per month
  • Work in the construction industry
  • Outstanding invoices are no older than 60 days

You won't need to meet any minimum personal or business credit score requirements. And it's okay if you or another owner has been in bankruptcy before — CapitalPlus is more focused on your clients' ability to repay.

How the application works

To complete CapitalPlus's application, you'll need to provide quite a bit of information about your business. Unlike most factoring companies, it doesn't require you to connect specific invoicing software. However, you will need to provide proof of licensing, recent corporate tax files and personal information of each of the owners.

What sets it apart

CapitalPlus is a unique invoice factoring company because it works solely with construction businesses. This specialization allows it to know how your business works and what financing might be best for you.

On the downside, it has some of the more strict requirements we've seen. If your business isn't bringing in at least $50,000 a month in invoices, CapitalPlus won't be the right choice.

Is CapitalPlus legit?

Yes, CapitalPlus is a legitimate provider that works closely with your business and your clients to process unpaid invoices. While it isn't the most up front about the total cost of using its service, CapitalPlus does provide plenty of information about how the application and funding process works so you can make an informed decision.

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