The situation
Standard invoice finance assumes clean invoices — one job, one invoice, paid within terms. Construction rarely works like that: interim applications for payment, retentions held for months or years, disputes on final accounts.
How we approach it
We route construction cases to specialist funders that fund applications for payment (not just invoices) and handle retention releases sensibly. Cost is higher than mainstream IF; access is what matters.
What that looks like in practice
- Application-for-payment funding, not just invoices
- Retention finance where retentions are held for months
- Contract-based facility structures
- Pay-when-paid clauses managed appropriately
- Specialist construction funder panel — narrow but active
Typical timeline
- Week 1-2Contract portfolio and payment pattern reviewed.
- Week 3-4Specialist funder engagement, facility structure.
- Week 4-6Facility live, first advances.
Common questions
Will funders advance on applications for payment?
Specialist construction funders yes; mainstream IF funders generally no. Choice of funder matters more here than in most sectors.
What about retentions?
Retention finance is a distinct product — advances against retention balances due for release. Available from a small panel of specialists.
Is it much more expensive than standard IF?
Yes, usually 30-50% higher on fees — reflecting the higher risk in application-based invoicing. Still cheaper than capital constraints on growth.
Construction cashflow, properly funded
Send an outline of your contract book — we'll route to specialists that fund construction properly.