Construction Invoice Finance
Construction invoice finance lets builders, subcontractors and specialist trades borrow against applications for payment and invoices while they wait to be paid. How much is advanced depends on the provider: published rates run from up to 85% (Bibby) to up to 95% (Ultimate Finance).
A way to borrow against applications for payment and invoices. Published advance rates run from up to 85% to up to 95% depending on the provider. More detail + scope
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 harder than most. Payment depends on applications being certified and on main contractors paying on time, and retentions hold back part of each payment until the work is signed off. Build UK publishes how long individual contractors and clients take to pay their suppliers and what retention rates they use. Not every invoice finance provider handles applications for payment or retentions, so ask before you apply.
Specialist construction factoring providers understand applications for payment, JCT/NEC contracts, stage payments, retention mechanics, and the Housing Grants, Construction and Regeneration Act 1996 (the "Construction Act"). They assess your main contractor's creditworthiness rather than just your own.
Providers to Compare for Construction
| Provider | Min Turnover | Advance Rate (published) |
|---|---|---|
| Close Brothers | £750k | Up to 90% |
| Bibby | Not published | Up to 85% |
| Ultimate Finance | Not published | Up to 95% |
| IGF | £5m (larger contractors) | Up to 90% of receivables |
Each provider's published figures, as listed on its profile page with the source; checked 9 October 2026.
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
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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