What is progressive lending?

Progressive lending is a financing approach that allows borrowers to access funds in stages or tranches as they meet specific project milestones or requirements. This method is commonly used in construction and real estate development, where funds are released incrementally based on the completion of various project phases. It helps manage risk for lenders and ensures that borrowers only take on debt as needed, aligning funding with actual progress. This approach can enhance cash flow management and reduce the financial burden on borrowers.