The Tennessee-based company earns a spot based on its response to COVID-19 limitations that restricted the construction industry
KNOXVILLE, Tenn. – CapitalPlus Construction Services, a leading provider of accounts receivable and material financing for construction companies, general contractors, subcontractors and disaster recovery providers, has been recognized by the ABF Journal as one of the 50 Most Innovative Companies in Specialty Finance in 2021.
This is the second year the independent trade finance magazine has ranked capital providers, expanding the inaugural list from 25 companies in 2020 to 50 in 2021. ABF Journal also increased the candidate pool from lenders to also include service providers and referral sources. The Most Innovative Companies in Specialty Finance list highlights those companies that used innovation to stand out in the industry and improve their own bottom lines.
“Our team’s response to the challenges COVID-19 placed on our industry helped us earn this award,” said Scott Applegate, president of CapitalPlus Construction Services. “We worked to reshape CapitalPlus to more effectively anticipate market fluctuations in the industry and permanently change how we operate. Our diverse professional backgrounds in financial services, supply chain management and construction operations propelled our ability to thrive when many in the construction industry needed our help the most.”
After re-examining its core values, CapitalPlus underwent a significant transformation to better meet the needs of an industry that was fully affected by COVID-19 supply-chain disruptions, a widening working capital gap, longer pay cycles and dwindling credit limits.
To combat these challenges, CapitalPlus launched its state-of-the-art material financing platform that allows it to purchase the construction materials its clients need to ensure projects stay on track. The platform also offers contractors and subcontractors extended payment terms, freeing up their working capital so they can pay their staff or fund daily operations. As a result, CapitalPlus experienced a growth of 185% over its prior-year numbers.
“The pandemic exposed inflexibility in the commercial lending industry as a whole,” said Grant Applegate, CapitalPlus’ director of supply chain operations. “In the construction industry, completing a project on time and on budget is critical to success. Creating a platform that was agile enough to meet the challenges of a post-COVID world allowed us to earn the trust of our contractor partners, which also helped with our client retention goals.”