Construction business loans glossary

The words you'll hear from lenders and brokers, explained in a sentence or two.

Application for payment: A claim a contractor submits for work done in a period, usually monthly.
Retention: A percentage of each payment held back by the client until defects are fixed.
Construction Industry Scheme (CIS): HMRC's scheme requiring contractors to deduct tax from subcontractors' payments.
Gross payment status: CIS status that lets a subcontractor be paid without tax deductions.
Contra charge: A deduction a contractor makes from a subcontractor's payment, for example for damage or delays.
VAT domestic reverse charge: A rule under which the customer, not the supplier, accounts for VAT on many construction services.
Plant finance: Asset finance for construction machinery such as excavators and telehandlers.