Trade and debtor finance are well established in the marketplace as legitimate lines of credit for those in a B2B environment and there’s now a sizeable number of lenders offering much more competitive rates than in years gone by. But an easy solution isn’t always available for those in the construction or construction related industries who rely on progress payments. Enter Progress Claims Finance.
How does it work?
Case Study: A contract is secured to provide 120 kitchens in a unit complex with a value of $1.2M. The contract allows for progress claims to be made each month when the subcontractor issues an Application for Payment and a Payment Schedule is issued by the head contractor. Progress Claims Finance would provide a line of credit up to the value of 70% of the Payment Schedule value.
This is a legitimate line of credit solution that does not require property as the line of credit secured against the value of your progress payments.
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The Commonwealth Treasury has approved the first participating lenders in Phase 2 of the Government’s SME Guarantee Scheme. Key information on Phase 2 of Government