Construction invoice finance: how it works

Answer in brief

Construction invoice finance advances part of the value of your certified applications for payment or invoices, so you don't wait 30 to 60 days or more for cash. It's a specialist product: many mainstream invoice finance providers don't fund construction because of stage payments, contra charges and disputes. Specialist lenders understand these and price for them.

How it works

You submit an application for payment or invoice.
The lender advances a percentage once it's certified or verified.
Your client pays, and the lender releases the balance minus fees.

Why it's different from normal invoice finance

Construction payments depend on valuations and can be reduced by contra charges or disputes. Retentions are held back for months. Specialist lenders assess the contract, the client and your track record, not just the invoice.

Who it suits

Subcontractors working for main contractors
Firms growing faster than their cash allows
Businesses with long payment terms

Questions and answers

Can I finance retentions?

Some specialist lenders will advance against retentions, but many won't. Ask specifically.

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