What is a work-in-process schedule in an ABL borrowing-base certificate for construction contractors?
Last updated: August 27, 2026
What does ABL Advisor print on contractor WIP and billings?
The same ABL Advisor construction-sector piece prints: "most working capital providers do not lend to the construction industry because of the nature of accounts receivable activity (i.e. progress billings)." It also prints the contractor-balance-sheet pair "cost in excess of billings ('Under Billings,' an asset on the balance sheet) and billings in excess of cost ('Over Billings,' a liability on the balance sheet)."
What does OCC print on unbilled AR?
The OCC Comptroller's Handbook on Asset-Based Lending lists "Unbilled accounts receivable" among "receivables commonly designated as ineligible."
What does Bank of America print on construction AR?
Bank of America Business Capital prints that "in the case of a construction company, lenders may not feel comfortable lending against accounts receivable that could be difficult to collect due to progress billings, retention or the presence of bonding requirements."
Related topics
- Before binding an ABL revolver, which AR lines are ineligible?
- Progress billings in borrowing base before bind
- Unbilled cost-in-excess vs billings-in-excess at term sheet
- Construction AR vs manufacturing AR at bind
- Field exam vs monthly borrowing-base reporting
Frequently asked questions
What is a work-in-process schedule in an ABL borrowing-base certificate for construction contractors?
ABL Advisor prints that a contractor's WIP schedule "isn't a traditional part of a financial statement" and "can be an important part of the financial package provided by a contractor," and that "A lender must closely follow the WIP."