Key Takeaways
- Progress claims finance lets subcontractors get paid sooner for work already done.
- It helps smooth out cash flow and keeps projects running without delays.
- Funds can cover wages, materials, insurance, and overheads.
- Lenders look for valid claims, solid contracts, and dependable clients.
- Works well for all forms of civil and commercial construction businesses.
Cash flow: It’s the heartbeat of every construction business. You do the work, submit a claim, and then wait. Sometimes far too long. Payments stretch out, suppliers keep calling, and you’re left trying to hold everything together until the next transfer lands.
Progress claims finance can change that dynamic, giving you access to the money you’ve already earned. Instead of being trapped by payment schedules and long processing times, you can move forward with confidence and keep your projects moving.
What Is Progress Claims Finance?
Progress claims finance, occasionally called progress finance, is a funding solution that releases cash tied up in unpaid claims. You complete a stage of work, lodge a claim for payment, and wait for certification or approval. A lender reviews that approved claim and advances most of the value upfront.
For example, if you’ve finished a $100,000 stage and it’s approved for payment, you could receive $80,000 right away if you had a progress claims facility. You can use that money to pay wages, buy materials, or start the next section of work. When the client finally pays, the finance is settled, and the remaining balance goes to you.
It’s not about borrowing against future work; it’s about unlocking funds you’ve already earned but haven’t yet received.
Check out our guide to progress claim financing to learn more.
Why Cash Flow Becomes a Struggle for Subcontractors
Anyone who’s worked in construction knows how unpredictable payment cycles can be. Subcontractors live and die by the timing of cash inflows. When a payment drags out, it can hold everything else hostage: wages, suppliers, equipment hire, even insurance.
Here are a few of the common pinch points that lead to cash flow pressure:
- Long approval timelines: Progress claims often sit with site managers or certifiers waiting for sign off.
- Retention clauses: A percentage of your payment might be withheld until the end of the job.
- Client disputes: Sometimes claims are questioned or partially approved, creating uncertainty.
- Material price rises: You pay upfront for supplies long before reimbursement.
Each delay chips away at your working capital. Progress claim finance acts as a safety net, letting subcontractors cover costs, pay staff, and keep momentum while waiting for payment to clear.
How Subcontractors Get Progress Claims Finance
The process is straightforward, and speed is the point. Construction moves quickly, so lenders who specialise in this space design their process to match.
Here’s how it usually unfolds:
- Apply for Finance: Fill out our online form to apply. After an initial assessment, we move forward to submitting your application.
- Formal Application: We submit your application to the chosen lender. Progress claims finance usually requires a full doc submission, with financials, aged receivables, and ATO portals needed.
- Approval: Once the lender approves, you will gain access to a facility that works like a line of credit with a pre approved set limit.
- Use the Facility: You can now apply for funding against an invoice for an approved progress claim. You can get most of the invoice value in as fast as 24 hours.
Benefits of Progress Claims Finance for Trade Contractors
For subcontractors and trade contractors, progress claim finance isn’t just a stopgap. It’s a tool that helps you stay steady in an unpredictable environment. The main benefits include:
- Reliable cash flow: No more waiting weeks or months for payments that keep your projects on hold.
- On time payroll: Your team gets paid without delay, keeping morale high and turnover low.
- Supplier confidence: Paying invoices on time can earn better pricing and priority service.
- Project momentum: You can move into the next stage without slowing down due to funding gaps.
- Financial control: Instead of relying on personal savings or overdrafts, you use the funds your business has already earned.
For many subcontractors, that peace of mind is worth as much as the finance itself. It’s about knowing the business can handle both the busy months and the quiet ones.
Who Can Access Progress Claim Finance
Nearly every subcontractor working under a staged payment contract can access progress claim finance. This includes electricians, carpenters, plumbers, tilers, formworkers, concreters, and civil contractors. If you’re part of the build chain and you issue progress claims, you’re likely eligible.
What matters most is documentation. If you can show the lender a valid contract, a recent claim, and an approved stage of work, they can assess you quickly. The more established your business, the easier the approval, but even small operators can qualify.
Managing Work with Progress Claim Funding
Once you have access to progress claim finance, your business starts to feel different. Cash stops being a constant headache. You can:
- Order materials earlier and avoid supply delays.
- Keep up with insurance and compliance costs.
- Bid on new projects confidently, knowing funds are available.
- Keep every job on schedule without waiting for overdue payments.
In short, it gives you breathing room. That’s something every subcontractor needs from time to time.
Things to Watch Out For
Progress claim finance works best when you understand the costs and terms. Make sure you check:
- Fees and interest rates: Compare providers to find fair pricing.
- Client reliability: Lenders often base risk on who your customers are. Government contracts, work on schools, hospitals and infrastructure are preferred.
- Contract details: Clear payment terms help reduce disputes and keep funding smooth.
If you’re unsure, ask questions. A good lender will explain how repayments work, when funds are released, and what to expect if a client delays payment.
Conclusion
Progress claims finance construction businesses control over cash flow. It frees up working capital locked in unpaid claims and turns it into usable funds. That means less stress, more consistency, and the ability to take on work without hesitation.
The construction industry runs on trust and timing. Progress finance supports both, giving you the confidence to deliver on your contracts and grow your business at your own pace.
Disclaimer: Loans and their accompanying benefits are available only to those who qualify for them and have been approved. Though we put a lot of care into writing this article, the information presented within is general and doesn’t consider your unique situation. It is not meant to serve as a substitute for professional advice, and you should not rely on it solely for any major financial decisions. You should always consult with a professional when you’re dealing with finance, tax, and accounting matters.
Get Your Cash Flow Back on Track
If you’re tired of waiting for progress payments, talk to Dark Horse Financial. We’ll help you find a funding solution that fits your contracts, your clients, and your goals. Send in an enquiry today.
