Glossary term
What is Progress payment?
Short answer
A progress payment is a partial payment made as a long job moves along, instead of one payment at the end.
Progress payment, explained for tree service owners
Large land clearing or multi-day commercial jobs can take weeks. A progress payment plan splits the price into steps, such as a share at the start, a share when half the work is done, and the rest at completion. This keeps cash coming in while the crew pays for fuel and wages. Write the schedule into the contract so both sides know what to expect. Keep each step tied to clear work, not just dates, so there is little room for arguments.
Related terms
- Accounts receivable
Accounts receivable is money that customers owe you for work you already finished and billed.
- Deductible
A deductible is the amount you pay yourself on a claim before your insurance starts to pay.
- Working capital
Working capital is the cash a business has available to run day to day, after paying short-term bills.
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