Let construction finance ease your cash-flow
Need a financial solution that understands the cash flow challenges of the construction industry?
Construction finance for invoices allows you to access funds against both certified and uncertified applications for payment, giving you the working capital you need to keep your projects moving.
Our expert brokers will connect you with lenders offering flexible terms tailored to your business, helping you bridge the gap between completing work and getting paid.
Expert finance advice
tailored to you
Quality service
Fast, friendly and professional service.
Lender Choice
Over 250 Banks, Hedge Funds, Family Offices & more.
Experience
Over 15 years of specialist finance broking.
Bespoke Lending
Finance tailored specifically to meet your needs.
Looking for development finance?
What is Construction Finance?
Construction finance is a specialised funding solution tailored for the building sector.
It allows construction firms to access cash against certified and uncertified applications for payment, as well as invoices raised at completion.
Construction finance isn’t a traditional business loan. Instead, it uses your invoices and payment applications as security, eliminating fixed repayment terms.
This approach provides you with essential working capital to manage your projects effectively, without long-term debt obligations.
If you are a contractor or sub-contractor in the UK construction industry and work under contract, framework agreement or purchase order, our Construction Finance solution is suitable for you.
How Construction Finance Works
- Complete your project stage
- Submit payment applications and invoices to the lender
- Receive 70-90% of your application or invoice as cash, often within 24 hours
- Your customer pays the lender, who deducts the owed amount and pre-agreed fees
- You receive the remaining balance
This system ensures steady cash flow throughout your project, even before customer payments.
We’ll help you find construction finance that adapts to your business growth and can be released in stages to align with your contract phases. This ensures you have the right amount of funding at each project stage.
Is construction finance the same as invoice finance?
Invoice Finance
Invoice finance is a broader term that applies to many industries. It allows businesses to borrow money against the amounts due from customers.
Construction Finance
This is a more specialised form of funding designed specifically for the construction industry.
While it often includes elements of invoice finance, it has additional features tailored to the unique needs of construction businesses.
Key differences:
- Payment Applications: Construction finance allows funding against uncertified applications for payment, which is unique to the construction industry. Standard invoice finance typically only funds against issued invoices.
- Stage Payments: Construction finance can accommodate stage payments common in construction projects, whereas traditional invoice finance might not.
- Project Lifecycle: Finance can often cover various stages of a construction project, from planning to completion. Invoice finance is typically limited to issued invoices.
- Retention: Construction finance may have provisions for dealing with retention, which is common in construction contracts but not in other industries.
- Risk Assessment: Lenders assessing construction finance applications often consider factors specific to the construction industry, such as project viability and contractor experience.
- Flexible funding: As your business grows, so too does the amount of funding available, with finance linked directly to your sales ledger.
- Additional Services: Some construction finance providers offer additional services like quantity surveyor reports or contract reviews, which aren’t part of standard invoice finance.
While construction finance often includes invoice financing as a component, it’s a more comprehensive and specialised funding solution designed to address the specific cash flow challenges faced by businesses in the construction industry.
Types of Construction Finance
We can help you access various types of construction finance.
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Key Features of Construction Finance
Construction finance offers unique features designed to address the specific needs of the building industry.
From funding against uncertified applications to flexible drawdowns that match your project stages, these key features can help you manage cash flow more effectively and take on larger contracts with confidence.
Fast Fund Access
Once set up you can receive cash within 24 hours of submitting payment applications or invoices.
Uncertified Payment Application Funding
We can connect you with lenders who offer funding against uncertified applications, providing earlier cash access.
Flexible Terms
We’ll find finance solutions that adapt as your business takes on larger projects.
Bad Debt Protection
Some lenders offer cover against non-payment or customer insolvency.
Who Can Benefit from Construction Finance?
We help a wide range of businesses secure suitable finance:
Contractors and Subcontractors: Ideal if you work under contract, framework agreement or purchase order in the UK construction industry.
Property Developers: Support throughout your project lifecycle, whether residential or commercial.
Small to Medium-Sized Construction Firms: Compete with larger firms by improving cash flow and securing better supplier terms.
Why Choose Construction Finance?
Better Cash Flow Management
Access cash against your applications for payment and invoices to optimise working capital.
Confidence in Larger Projects
Improved cash flow allows you to bid for and accept bigger contracts without upfront cost concerns.
Stronger Supplier Relationships
Pay suppliers promptly to secure better prices and terms.
Industry Challenge Resilience
Adapt to rising material costs and supply chain issues with flexible finance.
Stages of a Construction Project We Can Help Finance
We can help you secure finance for all project stages.
We’ll help you find lenders offering phased funding to match your project progress, providing the right amount of finance at each stage.
Planning and Design: Cover initial costs and professional fees.
Land Acquisition: Finance land purchases for developers.
Site Preparation: Fund groundwork and initial construction phases.
Construction: Finance the main build, including materials and labour.
Completion and Handover: Ensure high-standard project completion.
Why Choose Us for Your Construction Finance?
With over 15 years financing the construction sector, we bring extensive expertise to your project.
Large Lender Network: Access to over 250 lenders to find the best funding solution.
Personal Service: A dedicated broker who understands your business needs.
Expert Support: We can introduce you to industry specialists for contract reviews and advisory services, including dispute resolution.
make contactFAQ
By providing quick access to cash against your invoices and payment applications, construction finance helps maintain steady cash flow throughout your project, even before your customers have paid.
Construction finance is a specialised funding solution that allows construction firms to access cash against certified and uncertified applications for payment, as well as invoices raised at completion.
Unlike traditional loans, construction finance uses your invoices and payment applications as security, eliminating fixed repayment terms and providing more flexibility.
We can help you access various types including invoice finance, asset finance for equipment and machinery, and development finance for large-scale projects.
While this varies by lender, we typically work with loans starting from £100,000.
Once you are approved, many lenders offer access to funds within 24 hours of submitting payment applications or specific invoices.
Typically, the finance is secured against your invoices and payment applications. Some lenders may require personal guarantees or additional security for larger loans.
Yes, construction finance is available for both residential and commercial construction projects.
Certified and uncertified applications for payment, along with invoices raised at completion, are different methods of requesting payment in the construction industry. Here’s a breakdown of the differences:
Uncertified Applications for Payment: These are initial payment requests submitted by contractors or subcontractors for work completed during a specific period. They haven’t yet been approved or verified by the client or project manager. Uncertified applications represent the contractor’s assessment of work done and the amount due.
Certified Applications for Payment: Once an uncertified application is reviewed and approved by the client, architect, or project manager, it becomes a certified application. This certification confirms that the work has been completed as claimed and that the amount requested is approved for payment. Certified applications typically carry less risk for lenders.
Invoices Raised at Completion: These are invoices issued when a project or a defined phase of work is fully completed. They represent the final billing for the work done and are usually based on the total contract amount minus any previous payments. Completion invoices often include any retained amounts that were held back during the project.
The main differences lie in the timing and level of verification:
- Timing: Uncertified and certified applications are typically submitted during the project, while completion invoices are issued at the end.
- Verification: Uncertified applications haven’t been verified, certified applications have been checked and approved, and completion invoices are based on fully completed and accepted work.
- Risk Level: Uncertified applications carry the highest risk for lenders, certified applications less so, and completion invoices generally have the lowest risk.
- Payment Likelihood: Completion invoices are most likely to be paid in full, followed by certified applications, with uncertified applications carrying the most uncertainty.
