Best Invoice Finance for Construction 2026

Compare UK invoice finance providers for your situation, then get 3 free quotes. Free, no obligation, and nothing to pay if you decide not to proceed.

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Recruitment agencyConstructionWholesaleUnder £500k turnoverConfidential (clients mustn't know)Not sure

In construction you are often paid against an application for payment, not an ordinary invoice, so pick a lender that funds those. Bibby says it funds certified and uncertified applications for payment and has over 20 years of providing finance to construction. Ultimate Finance has a construction product for firms with at least a year's trading and over £600k turnover, with facilities up to £2m (both read 14 Oct 2026). Close Brothers publishes a £750k minimum; ask it whether it funds applications for payment. Market Invoice compares UK invoice finance providers, and you can get 3 free quotes through our introduction partner, a UK invoice finance provider.

What this page covers

This page covers

Lenders with construction finance products, what they publish, and how applications for payment and retentions work

Not covered here

Other industry guides and detailed cost breakdowns

Lenders to compare

LenderPublished minimum turnoverPaid up frontSource
Bibby Financial Services None published Up to 85% bibbyfinancialservices.com
Ultimate Finance None published (its construction product needs over £600k) Up to 95% ultimatefinance.co.uk
Close Brothers Invoice Finance £750k Up to 90% closeinvoice.co.uk

Figures as published on each lender's own website, checked 14 October 2026. None of these lenders publishes its fees.

Why construction is different

In construction you don't always raise a simple invoice. You submit an application for payment, part of it may be held back as a retention, and there can be contra charges, variations and the payment notice rules in the Construction Act.

A lender that doesn't fund construction work may turn you down, or advance against the full amount and then have to claw back the retention. Ask each lender whether it funds applications for payment and how it treats retentions.

By Trade

Guides for some trades:

Scaffolding → Electrical → Plumbing & heating → M&E engineering →
AP

Adam Parker

Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd

Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.

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Construction Invoice Finance FAQ

Which invoice finance provider is best for builders?

It depends on your size. Bibby has a construction finance product, publishes no minimum turnover, and says it funds certified and uncertified applications for payment. Ultimate Finance's construction finance needs at least a year's trading and over £600k turnover. Close Brothers publishes a £750k minimum. Get quotes from more than one and compare the total cost.

Can subcontractors get invoice finance?

Yes. A subcontractor can fund the money a main contractor owes it. Lenders look closely at the main contractor, because that is who pays. Bibby and Ultimate Finance both say they fund applications for payment, not just invoices.

How do retentions work with invoice finance?

A retention is the part of each payment the main contractor holds back until the work is finished and any defects are put right. Lenders usually don't advance against it, because it isn't due yet. So the cash you get is based on the payment less the retention. Ask each lender how it treats retentions before you sign.

Do providers accept applications for payment instead of invoices?

Construction lenders do. Bibby says it funds certified and uncertified applications for payment (read 14 Oct 2026). Ultimate Finance says it can release cash before a payment certificate is issued. A general invoice finance lender may only fund invoices, so ask.

Why is construction invoice finance harder to get?

Construction payments are less simple than an ordinary invoice. You are paid in stages, the amount can be disputed, part is held back as a retention, and some contracts delay payment until the main contractor is paid. Lenders price and limit for that, which is why a lender that works with construction firms is worth asking first.

Can a construction subcontractor fund a single project?

Some lenders let you fund single invoices without putting your whole sales ledger into a facility. Whole-ledger lenders usually want steady turnover and more than one customer. Ask a selective lender and a whole-ledger lender, and compare the cost.