2 min read
Definition
A stage payment is a payment made at a defined point in a project, rather than all at the end — for example on completion of a design, delivery of materials, or a phase of work. Staging payments spreads cash in across a long job, shrinking the gap the supplier must fund.
In plain terms
On a lengthy project, tying payments to milestones means cash arrives as costs are incurred, keeping the work self-funding rather than leaving the contractor to finance everything until a final invoice.
Why it matters
Stage payments are one of the most effective cash-flow tools on larger work. See milestone billing and how to take deposits and stage payments.
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