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Mainstream lenders don't understand Applications for Payment, QS valuations, or retention. Specialist construction finance providers do. Fund your APs, stage certificates, and unlock cash trapped in retention — from lenders who speak your language.
Construction payment cycles are unlike any other industry. Standard invoice finance doesn't work when you're dealing with Applications for Payment, QS valuations, retention, and CIS deductions. Here's what makes construction unique:
You don't raise invoices — you submit Applications for Payment that require QS certification. Standard lenders don't understand this process.
We fund both certified and uncertified APs
3-5% of every payment is held back for 12-24 months. That's significant cash tied up in retention across multiple projects.
Specialist lenders can unlock retention early
Construction Act allows 30-day payment terms, but certification and processing often means 45-60+ day payment cycles in practice.
We bridge the gap from work to payment
The Construction Industry Scheme means 20-30% of payments go directly to HMRC. Standard finance doesn't account for this.
CIS-experienced lenders calculate net advances
Payments flow down through multiple tiers. Your cash flow depends on parties you've never met paying on time.
We assess the whole payment chain
Variations, defects, and snag lists are normal in construction but make standard lenders nervous.
Specialist lenders understand construction disputes
Complete Work
You finish a stage or valuation period
Submit AP
Application for Payment submitted
QS Review
7-14 days for certification
Payment Notice
Client confirms payment due
Payment Period
30 days from AP submission
Receive Payment
Less retention & CIS
With construction finance: Get up to 85% after step 2 (AP submission) instead of waiting 45+ days for step 6.
Specialist construction lenders offer multiple funding options depending on where you are in the payment cycle.
Applications that have been approved/certified by the QS or client. The safest option for lenders, offering the highest advance rates.
Advance rate
80-85%
Timing
24 hours from certification
Best for
Highest advance, lowest risk
Applications you've submitted but haven't yet been certified. Lower advance rate accounts for potential QS adjustments.
Advance rate
60-75%
Timing
24-48 hours from submission
Best for
Faster access, before certification
Monthly or periodic valuations on larger contracts. Fund against each stage completion to maintain project cash flow.
Advance rate
70-80%
Timing
24-48 hours
Best for
Regular predictable funding
Unlock cash tied up in retention before the defects liability period ends. Available on clean projects without disputes.
Advance rate
70-80%
Timing
2-3 weeks (one-off setup)
Best for
Unlock trapped capital
Construction finance typically costs more than standard invoice finance (1.5-3.5% vs 1-2%) due to the higher risk and specialist nature. But for many contractors, the cost is worth it to maintain healthy cash flow.
Monthly fee for facility management, credit monitoring, and admin. Higher than standard factoring due to specialist handling.
Interest charged on advances, calculated daily. Currently around 6.5-9% per annum depending on risk profile.
Protection against client insolvency. Particularly important in construction where main contractor failures can cascade down the supply chain.
£100,000 Certified Application for Payment
Construction finance advance (80% of net):
After client pays (45 days):
Note: CIS paid to HMRC (£19k) and retention (£5k) held by client — totalling £24k. You still claim CIS credits on your tax return.
Don't meet all the criteria? We may still be able to help — speak to us about your situation.
Discuss Your SituationWhether you're a main contractor, specialist trade, or subcontractor, we have lenders who understand your specific sector challenges.
Construction finance takes slightly longer to set up than standard facilities due to the specialist assessment required. Here's what to expect.
Everything contractors need to know about construction-specific invoice finance.
Compare rates from lenders who truly understand the construction industry. Fund your Applications for Payment, unlock retention, and maintain healthy cash flow throughout your projects.
Main contractors and subcontractors. Turnover £100k+. Funding in 2-3 weeks.