Will A Debtor Financier Fund Progress Claims?

 In Debtor Finance, Invoice Factoring, Invoice Finance

Financing progress claims is a specialised field which most financiers don’t offer.

A few Debtor Financiers will specialise in construction or civil contractors, however receiving the green light to obtain funding will depend heavily on the strength of a client’s customers.

The reason most financiers won’t do this is because a progress claim means you have only partly delivered on the Purchase Order from the customer, so technically speaking that invoice is not due and payable and therefore not factorable.

The worry from a financiers point of view is that if they finance one of the claims and then for some reason the client doesn’t show up to finish the job, then there could be a dispute whether those claims are due and payable as the job was never fully completed. In a nut shell, financing a progress claim is extremely risky.

For more information call the office on 1300 651 243 to organise an appointment with a Product Specialist.

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