Progress Payment Financing

Progress Payment Financing is a capital financing product that is specialized for the Construction Industry. Progress Payment Financing is a partial payment that typically a Construction Subcontractor submits for advance payment for the amount of work that has been completed up to the point of the Construction Invoicing process.

There are few variations of how to structure these Progress Payments. The two most common ways of invoicing for progress payments are either: Billing by stage or Invoicing by the percentage of completion.

For example, a subcontractor using the Invoicing by the percentage of completion method could invoice their Construction client once 30%, 60%, and 100% of the project are completed and approved.

Considering most Commercial Construction contracts pay on net 30 to net 60 business days upon total completion of the project. Plus most Commercial Construction jobs take a while to complete.

A Subcontractor on a job could potentially have their cash flow tightened, up for quite some time. Progress Payment Financing may be just the product that helps to keep an active Sub-Contractor’s capital liquid vs the Sub’s own capital being bogged down.

In the construction world, Subcontractors are typically at the mercy of many other factors beyond their control in order to be paid for their portion of work on a construction project.

One of the tools that we here at AmeriDream Capital available for Construction Subcontractor clients is Progress Payment Financing. Our team wants to help free up cash flow for our Subcontractors so that they can redirect that capital into other areas of their business that they believe it needs.