Invoice finance for construction: funding completed work in a sector with complex terms.
Parts of the construction supply chain, particularly subcontractors invoicing for completed work and suppliers of materials or labour, can use invoice finance. Applications for payment, retentions and stage payments make some construction invoices harder to fund, so specialist providers and careful structuring matter here.
Costs vs receipts, 8 weeks
Illustrative only. Every facility is priced and structured by the provider.
Typical issue
Complex payment terms, retentions and stage payments
The three ways cash gets stuck in construction
Why construction is different
Parts of the construction supply chain can use invoice finance, particularly subcontractors invoicing for completed work and suppliers of materials or labour. It is less straightforward than in other sectors, and it pays to be realistic from the start.
Applications for payment, retentions, stage payments and contra-charges make some construction invoices harder to fund. Many general providers decline the sector entirely; specialist providers exist and structure facilities around these features.
What tends to work is clear, completed work invoiced to a creditworthy contractor or client, with retentions understood and excluded, and a facility from a provider that knows the sector. We will tell you honestly whether your business is likely to be fundable and by whom.
How providers tend to look at construction
Facilities that tend to suit construction businesses
Specialist construction factoring
Facilities from providers who understand applications, certification and retentions.
Find out moreSelective invoice finance
Fund specific invoices for completed work to a strong main contractor.
Find out moreConfidential invoice discounting
For established businesses with clean invoicing and reliable reporting.
Find out moreReviewing an existing facility
If disallowances and fees have made your facility expensive, we can check it against specialist alternatives.
Find out moreIs invoice finance right for a construction business?
Indicators, not rules. Providers make their own assessments and some specialise in situations others avoid.
Signs it may suit you
- You are a subcontractor or supplier invoicing for completed work
- Your customers are established main contractors or end clients
- Retentions are a modest part of your billing
- Invoicing and sign-off are reasonably tidy
Signs it may not be the answer
- Most billing is by application on work in progress
- Retentions, set-off and contra-charges are large and frequent
- You work mainly for consumers or under pay-when-paid terms with weak contractors
If several of these apply, a specialist provider or another form of funding may be more appropriate. See the general suitability check.