What is construction finance?

12/01/2026

Construction finance is a flexible funding solution that offers contractors and sub-contractors fast access to working capital advanced against applications for payment.

In the construction industry, there are many potential cash flow issues and other challenges that could arise from extended and unpredictable payment cycles or fluctuating costs of materials.

By releasing funding against your certified or uncertified applications for payment or stage invoices, construction finance bridges the cash flow gap between paying suppliers and getting paid so that you can take on new projects and grow your business with confidence.

How does construction finance work?

1. Your business raises a stage invoice or an application for payment
2. Construction finance company advances up to 70% of the value of applications but up to 90% of the value of invoices, where works are completed and signed off for, within 24 hours
3. Your customer pays into the Funder’s account
4. Remainder of invoice value is made available to you, minus fees

Benefits of construction finance

• Construction finance helps businesses to overcome the cash flow challenges that are endemic in the construction industry
• Bridge the cash flow gap between having to pay suppliers and getting paid by your customer to ensure steady cash flow
• Allows you to gain fast access to working capital – often within 24 hours
• Funders specialise in the construction sector and so have a thorough appreciation of its workings
• Improved cash position can help you secure supplier discounts
• Provides flexibility as funding grows in line with sales ledger
• Credit protection may be available against your debtors to safeguard against debtor insolvency or protracted default

Which construction finance company is right for my business?

With so many funding products to choose from, finding the best solution for your construction business can be an immensely time-consuming process.

Given our team’s extensive experience and insight into the construction finance arena, we will quickly and effectively identify the most suitable options and lenders to meet your needs.

Use the tool below to find out how much funding you could release with construction finance:

 

To explore your options with one of our funding consultants, call us on 0800 9774833 or request a call back.

“Contacting Hilton-Baird was the catalyst my company needed to grow. Their knowledge of the industry was second to none and helped find the perfect funder for me.”

Simon Powell, Managing Director, Astringo Commodities Ltd