Construction Invoice Finance
Construction invoice finance advances up to 90% of your outstanding applications for payment within 24 hours, helping builders, subcontractors, and specialist trades manage cash flow between project milestones. The UK construction sector used £3.2 billion of invoice finance in 2025, making it the fourth-largest industry for this type of funding.
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Construction invoice finance advances up to 90% of outstanding applications for payment within 24 hours. The UK construction sector used £3.2 billion of invoice finance in 2025, making it the fourth-largest industry for this type of funding.
Summary
Specialist construction factoring providers advance against applications for payment, understand retentions, JCT/NEC contracts, and the Construction Act. Top providers include Close Brothers, Bibby, and Ultimate Finance, all with dedicated construction teams. Available from £50k turnover.
This Page Covers
Why construction needs specialist finance, how applications for payment are funded, best providers for construction, required documents, and retentions handling
Not Covered Here
Other industry guides (recruitment, export), detailed cost breakdowns, general invoice finance guides
Why Construction Needs Specialist Finance
Construction cash flow is uniquely challenging. Payment terms are typically 30-60 days from application, retentions hold back 3-5% for 6-12 months, and the payment chain depends on main contractors paying on time. Standard invoice finance providers often struggle with these complexities.
Specialist construction factoring providers understand applications for payment, JCT/NEC contracts, stage payments, retention mechanics, and the Construction Act. They assess your main contractor's creditworthiness rather than just your own.
Best Providers for Construction
| Provider | Min Turnover | Advance Rate | Construction Specialist? |
|---|---|---|---|
| Close Brothers | £100k | Up to 85% | Yes — dedicated team |
| Bibby | £50k | Up to 90% | Yes — dedicated team |
| Ultimate Finance | £50k | Up to 95% | Yes — dedicated team |
| IGF | £50k | Up to 85% | General (handles construction) |
What Documents Do You Need?
- Applications for payment or certified valuations
- Subcontract agreements or purchase orders
- 6 months bank statements
- Details of main contractors you work for
- Current aged debtor report
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