Progress claims funding is now available to provide funding support for Australian small and medium sized businesses.
What is Progress Claim Finance?
Progress Claim Finance is a specialised form of Invoice Discounting for those businesses that engage in contractual arrangements billed on a progressive or milestone basis. Funding is advanced against the stage or progress claims, thereby injecting working capital back into the business to improve cashflow and fund growth.
How it works?
- The business raises its progress claim as it normally would – adhering to relevant State Government Security of Payment Act requirements.
- Progress Claim copies are forwarded to the Funder for processing.
- The Funder advances funds against the value of the progress claim – usually within 24 hours
- As the client’s customers pay the claims, the Funder releases the previously unpaid balance less its fees and any retentions.
What does it cost?
The Funder charges a fee equivalent to a small percentage of the value of the progress claim financed, geared to the normal construction industry payment terms.
Which Industry Sectors can benefit from Progress Claim Finance?
- The most common type of PCF clients are subcontractors working for principal contractors in the construction and mining services sectors, and operating under the Securities of Payment Act, including, but not limited to flooring, roofing, electrical contracting, engineering, software/web development and IT services.
- The lender who will seek to structure a solution for any type of business which bills progressively
- When the contracting business would otherwise not be able to make the most of growth opportunities in the market.
- Where there is insufficient working capital to fund business activities before invoiced payments (debtor receivables) are received from customers.
Progress Claim Finance Features
- Minimum facility limit $50,000
- Maximum facility limit $750k
- Instant Funding up to 80% against outstanding progress claims billed under contract
- No real estate security required
- Live on-line account information 24/7 – accurate and real time information and reporting to assist you to manage your facility.
- Access to a team of expert professionals working on your account.