Progress billing: definition, example, and why it matters

Instead of one invoice at the end, the contractor bills (for example) 25% on signing, 25% at rough-in, 25% at finish, 25% on completion. Keeps cash flowing and reduces lien risk.

• Short definition. Invoicing a long job in installments tied to completion milestones.
• Category. Progress billing is a invoicing term used by service businesses when billing customers.
• How Glo Invoice handles it. Glo Invoice builds progress billing into the invoice itself, so you don't track it on paper or in a spreadsheet.

Frequently asked questions

What does progress billing mean?

Instead of one invoice at the end, the contractor bills (for example) 25% on signing, 25% at rough-in, 25% at finish, 25% on completion. Keeps cash flowing and reduces lien risk.

Related terms

• Invoice — A document a business sends a customer requesting payment for goods or services.
• Construction — Skilled trades that build, remodel, or repair structures.
• Retainage — A portion of a contract amount withheld until the project is complete.
• Deposit — An upfront payment that reserves the job or covers materials.