What is ProgressPay™?
Progressclaim.com has partnered with Omniveta Finance, an international debtor finance specialist, to offer General Contractors the ability to empower their Subcontractors by providing them access to a product that helps improve their cash flows and strengthen and grow their businesses.
Why is ProgressPay™ being offered?
Progressclaim.com had already simplified, improved and streamlined the claim and approval process for thousands of General Contractors and Subcontractors. We then turned our attention to the payment side of the process and have developed a solution that bridges the working capital gap faced by Subcontractors and that benefits everyone in the construction supply chain.
How much does ProgressPay™ cost?
Most debtor finance companies never disclose their fees. Our partner Omniveta Finance is proud to provide transparent and inclusive rates. There is an initial fixed fee of 3.5% of the invoice value, with nothing further payable until after 30 days, and only then if the invoice is still outstanding. From that point there is an additional 0.07% per day until the General Contractor makes payment. Omniveta Finance do not charge any additional interest, penalties, arrangement fees or management fees. This makes it far easier to understand and calculate the true cost, and avoids the typical hidden charges many industry participants rely on in order to market a “cheaper” headline rate.
Do I need to be using Progressclaim.com to be eligible for ProgressPay™?
Yes. ProgressPay™ is only available when your General Contractor uses Progressclaim.com and has elected to participate in the program.
What amounts are not eligible for ProgressPay™?
ProgressPay™ can be used to finance all progress claims up to 90% of the total value of original subcontract works plus approved variations. Unapproved variations and retention are not eligible for ProgressPay™. Before you request finance on a particular invoice, a breakdown will be provided showing what is eligible and the amount you will receive within 2 business days.
How does ProgressPay™ differ from other factoring and invoice discounting products?
ProgressPay™ is not only a disclosed facility, it is only offered with the complete support of the participating General Contractor, and offers their Subcontractors the ability to receive advance payment of 85% of the invoice value, far higher than the construction industry standard. There is no minimum charge, no management fees and Subcontractors can choose which invoices they would like to receive advance payment for, even on a claim-by-claim basis.
Who is Omniveta Finance?
Omniveta Finance is an international debtor finance specialist. Omniveta Finance has its roots in Scandinavia, where they have been administering complex financial products on behalf of banks and other financial institutions for more than ten years. Combined with a company philosophy of simplicity and transparency, this experience has helped secure their position as a trusted business partner in delivering industry specific debtor finance solutions. Omniveta Finance are currently represented in Denmark, Sweden and Australia, and expect to open offices in Germany, UK and Norway in 2016-17.
Financing the future of construction.