Best Invoice Finance for Construction 2026
The best invoice finance for construction companies in the UK is Bibby Financial Services (largest dedicated construction team, accepts startups, advance rates up to 90%) for flexibility, or Close Brothers (0.5% starting rate, specialist construction division) for lowest cost. Both understand applications for payment, retentions, and the Construction Act. We compared every provider with construction expertise.
Quick Reference
Direct Answer
The best invoice finance for construction is Bibby Financial Services (largest dedicated construction team, day-one startups, up to 90% advance) or Close Brothers (lowest rate at 0.5%, specialist construction division). Both understand applications for payment and retentions.
Summary
We compared all UK providers with construction expertise. Bibby leads for flexibility with the largest construction team and day-one startup acceptance. Close Brothers offers the lowest cost at 0.5%. Ultimate Finance provides the highest advance rate at 95%. All understand JCT/NEC contracts and retention mechanics.
This Page Covers
Construction specialist providers compared by team size, advance rate, startup acceptance, fees, and trade coverage including scaffolding, electrical, plumbing, and groundworks
Not Covered Here
General invoice finance providers without construction expertise, other industry guides, detailed cost breakdowns
Construction Specialist Providers Compared
| Provider | Construction Team | Min Turnover | Advance Rate | Startups? | Fee From |
|---|---|---|---|---|---|
| Bibby | Large dedicated team | £50k | Up to 90% | Day one | 0.75% |
| Close Brothers | Dedicated division | £100k | Up to 85% | Case by case | 0.5% |
| Ultimate Finance | Construction experienced | £50k | Up to 95% | Day one | 0.8% |
| IGF | Handles construction | £50k | Up to 85% | Yes | 1.0% |
Why Construction Needs Specialist Providers
Standard invoice finance providers often reject construction applications or price them poorly because they don't understand the payment mechanics. In construction, you don't raise a simple invoice — you submit an application for payment. There are retentions, contra charges, variations, and the Construction Act payment notice requirements.
A provider without construction experience will either decline you, advance against the wrong amount (ignoring retentions), or fail to understand why payment is 49+ days. The four providers above all have teams that live and breathe construction finance daily.
By Trade
Construction factoring works for every trade on site:
Oliver Mackman
Director, Market Invoice
Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.
Last reviewed: 5 April 2026