Invoice Finance for
Construction Businesses
Unlock cash from unpaid client invoices or contracts to maintain smooth operations and ensure timely project delivery.
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Turn Unpaid Invoices Into Cash To Keep Construction Projects On Track
Cashflow is the lifeblood of every construction business. Yet for many contractors and subcontractors, payment delays are one of the most consistent and damaging challenges they face. With payment terms in the construction sector often extending to 60, 90, or even 120 days, contractors are frequently forced to wait long after completing work before receiving payment.
In the meantime, wages, fuel, plant hire, materials, and subcontractor costs must all be covered. This creates significant financial strain, often holding businesses back from taking on new projects or causing unnecessary stress when managing day-to-day operations.
Construction invoice finance provides a powerful solution. By unlocking the value of unpaid invoices, it gives construction businesses access to the funds they are owed quickly and reliably, ensuring smoother cashflow and financial stability.
The Challenge of Late Payments in Construction
The UK construction sector is notorious for late and extended payments. Industry research consistently shows that construction has one of the longest average payment cycles of any sector. For contractors and subcontractors, this creates several challenges:
- Cashflow Gaps – Ongoing project costs must be paid before invoices are settled.
- Project Delays – Without funds, essential materials or plant hire may be delayed.
- Strain on Relationships – Paying staff, suppliers, and subcontractors late damages trust.
- Missed Opportunities – Limited cashflow prevents businesses from bidding for larger projects.
Invoice finance addresses these challenges head-on, ensuring that unpaid invoices are no longer a source of stress but instead a powerful funding tool.
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How Construction Invoice Finance Works
The process is simple, tailored to the unique needs of contractors:
Issue an Invoice
You raise an invoice for completed work.
Finance Released
A finance provider advances up to 90% of the invoice value, often within 24–48 hours.
Client Pays Invoice
When the client eventually pays, the lender releases the balance (minus fees).
There are different Types of Invoice Finance to suit your business:
Invoice Factoring
With factoring, the finance provider manages your sales ledger and collects payments directly from your clients. This option provides both funding and outsourced credit control.
Invoice Discounting
In this structure, you retain control of your sales ledger and client relationships, while receiving funding against your unpaid invoices. Discounting is often more discreet than factoring.
Spot Factoring
Ideal for contractors who only want to release funds from specific invoices, rather than their entire ledger.
This ensures that cash is available immediately, rather than months down the line, giving construction businesses the confidence to continue operating smoothly.
Benefits of Invoice Finance for Construction Contractors
Faster Access to Funds
Up to 90% of invoice value advanced quickly.
Improved Cashflow
Cover wages, suppliers, and overheads without delay.
Growth Enablement
Take on larger projects without waiting for payments.
Reduced Stress
Eliminate the pressure of long client payment terms.
Supplier Confidence
Pay suppliers on time and build stronger relationships.
Flexibility
Choose factoring, discounting, or spot solutions depending on your needs.
Why Invoice Finance Works Well in Construction
The construction industry’s reliance on staggered payments, retentions, and contractual disputes makes cashflow management uniquely difficult. Invoice finance provides stability by ensuring that your business can keep moving forward while waiting for clients to pay.
For subcontractors, it means covering labour and material costs with confidence. For main contractors, it allows you to bridge the gap between large project outlays and delayed revenues. In both cases, invoice finance creates breathing space and allows firms to focus on delivery rather than chasing payments.
Why Choose MacManus Asset Finance?
At MacManus Asset Finance, we work with a wide panel of lenders who understand construction’s cashflow challenges. Unlike traditional banks, which often shy away from financing contractors due to perceived risks, our specialist lenders are experienced in funding businesses across the sector.
When you choose us, you benefit from:
- Sector-Specific Knowledge – Over 20 years’ experience working with contractors and subcontractors.
- Tailored Facilities – Solutions structured around your payment terms and project pipeline.
- Wide Choice of Lenders – Access to multiple providers for competitive rates.
- Fast Decisions – Funding released quickly to match your cashflow needs.
- Ongoing Support – Guidance and adjustments as your business grows.
Key Takeaways
Cashflow pressures are an unavoidable reality in construction, but they don’t have to hold your business back. Construction invoice finance unlocks the money tied up in unpaid invoices, ensuring you have the funds to pay wages, suppliers, and subcontractors while waiting for client payments.
At MacManus Asset Finance, we connect construction businesses with tailored invoice finance solutions designed to support stability, growth, and confidence. From small subcontractors to national contractors, our facilities ensure you have the cashflow strength to deliver every project.
Construction Invoice Finance FAQs
Typically up to 90% of the invoice value, with the balance paid once the client settles.
Yes, subcontractors frequently use invoice finance to manage labour and materials costs.
With invoice discounting, the facility is confidential. With factoring, the lender collects directly.
Yes, many firms use invoice finance alongside asset finance or business loans.
The facility remains in place until the client pays. Some lenders may charge additional fees for extreme delays.
Yes, spot factoring allows you to release cash from individual invoices as needed.
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