Progress Billing Financing
Working capital advanced against approved AIA progress billings on active construction projects, so contractors can fund the next phase before the current one is paid.
How it tracks the project
Advances are sized against the approved billed-to-date figure on each pay application, net of retainage. Funding is typically released after the GC or owner signs off on the pay app.
Used correctly, it lets contractors mobilize the next phase, order materials, and meet payroll without waiting for the 30 to 60 day pay cycle on the prior phase.
Related Entries
See how this structure is used in practice.
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