What this page helps you decide
A progress payment passes through several gates: work completion, field verification, pay-application preparation, architect or owner approval, upstream payment, and final release. Funding should be based on where each invoice actually sits.
Options to compare before applying
| Option | Best aligned with | Typical process | Watch closely |
|---|---|---|---|
| Invoice factoring | Eligible approved commercial receivables | One to several days | Customer quality and assignment terms matter |
| Line of credit | Recurring portfolio-wide gaps | Fast once open | Requires disciplined borrowing base use |
| Working capital | Mixed project and overhead needs | Potentially fast | Not tied to a single invoice |
| Direct payment or joint check | Negotiable project relationships | Project-specific | May reduce financing need |
A four-step funding decision
Make the request easy to evaluate
Underwriting is clearer when the requested amount is tied to the specific operating event described on this page—not a rounded maximum. The file should connect a/r aging with pay applications, then show the date and source of expected repayment.
Present a base case and a downside case. The downside case should assume that the expected cash event arrives later than planned while the proposed payment still begins on schedule. If ordinary operations cannot support that case, reduce the request, change the product, negotiate the underlying expense, or wait.
A strong request answers four questions in plain language: What creates the need? Why is the amount correct? What business event repays it? What happens if that event is delayed?
Compare agreements on the same basis
Convert every offer into
- Net cash delivered after fees
- Total contractual payback
- Payment amount and frequency
- Estimated payoff date
- Prepayment treatment
Ask before signing
- What conditions remain before funding?
- Is the payment fixed or variable?
- What happens after a weak sales week?
- Are there liens or guarantees?
- Who services the obligation?
Documents that clarify the request
- A/R aging
- Pay applications
- Approval or payment status
- Contract payment and assignment provisions
Before signing anything
- Unapproved work is not equivalent to an eligible invoice.
- Pay-when-paid clauses can extend timing.
- Lien waivers and assignments require careful handling.
- Financing cannot repair a negative project margin.
Common questions
Which invoices are easiest to finance?
Generally, completed, undisputed, approved invoices to creditworthy commercial or government customers are easier to evaluate.
Does retainage count as near-term cash?
Usually it should be modeled separately because release can occur much later than ordinary progress payments.
What is the most important report?
A clean receivables aging tied to pay applications and realistic approval status.
Independent resources
U.S. Small Business Administration — Fund your business Consumer Financial Protection Bureau — Small-business lending resourcesProduct availability, qualification, cost, and timing vary. This page is educational and does not constitute a financing commitment.
See what the business may qualify for
Construction Capital Advance focuses on construction cash-flow gaps between mobilization and progress payments. A complete application allows the request to be evaluated; it does not guarantee approval or a particular funding time.
Review funding options