Hi, I’m Lewis Booker from Sorbus Finance, and if you’re a construction business owner, you’ll know that cash flow can make or break projects. It doesn’t matter whether you’re dealing with materials suppliers, subcontractors, or clients with long payment terms—managing working capital is one of the biggest challenges in the sector.
That’s where invoice finance for construction companies comes in. Yet many construction businesses assume finance isn’t an option for them. Why? Because the industry is often seen as high-risk by traditional lenders. But here’s the truth: just because some lenders say no, it doesn’t mean you’re out of options. In fact, there are more flexible solutions available today than ever before.
Why Construction Struggles With Traditional Lenders
Many construction firms have been turned away by banks or high street lenders because their business model doesn’t fit the “tick box” requirements. Common reasons include:
- Unpredictable payment cycles – payments often depend on project milestones.
- “Pay when paid” clauses – contractors are reliant on when the main contractor is paid.
- Complex contracts – terms and conditions that some lenders find difficult to underwrite.
- Industry volatility – with materials prices and labour shortages, risk can appear higher.
As a result, construction businesses often believe there’s no viable way to secure funding. But in reality, invoice finance for construction companies is a well-established solution that specialist lenders understand and support.
The Good News: More Options Than You Think
Specialist funders recognise the unique needs of construction and offer tailored invoice finance facilities. At Sorbus Finance, we regularly work with lenders such as:
- Bibby Financial Services – one of the UK’s leading independent invoice finance providers, with strong expertise in construction.
- 4Syte – a flexible, innovative funder willing to look at businesses that don’t always meet standard criteria.
- Lloyds Bank – a high street bank with dedicated invoice finance teams for construction companies.
These lenders don’t just release working capital—they also provide breathing room, helping you to pay subcontractors, manage materials purchases, and tender for new contracts with confidence.
What Is Invoice Finance For Construction Companies?
Put simply, invoice finance for construction companies allows you to unlock the value of unpaid invoices. Instead of waiting 30, 60, or even 90+ days for your clients to pay, you can access a large percentage of the invoice value within 24 hours.
This means:
- Improved cash flow to keep projects moving.
- Reduced reliance on overdrafts or loans.
- The ability to take on larger contracts.
- Less stress over chasing payments.
It’s a straightforward and effective way to turn your invoices into working capital.
Invoice Finance vs Invoice Factoring – Understanding The Difference
Two common terms often cause confusion: invoice finance and invoice factoring. While both involve releasing cash tied up in invoices, there are important differences:
- Invoice Finance (Invoice Discounting):
- You remain in control of your credit control and customer relationships.
- Payments from your clients are still made to you, and the facility remains confidential.
- Ideal for larger or more established businesses with in-house finance teams.
- Invoice Factoring:
- The lender takes over credit control and collects payments directly from your customers.
- This is usually non-confidential, meaning your customers will be aware of the arrangement.
- Useful for smaller businesses or those without finance teams.
When it comes to invoice finance for construction companies, both options can work depending on your size, structure, and preference for confidentiality.
Confidential vs Non-Confidential Facilities
Another decision to make is whether you prefer a confidential or non-confidential facility.
- Confidential Invoice Finance: Your customers don’t know you’re using the facility. This allows you to retain complete control over the customer relationship.
- Non-Confidential Factoring: Your customers will deal directly with the funder. This can take away the administrative burden of chasing payments but does make the arrangement transparent.
Both have benefits, and the right choice depends on your business goals and operational setup.
Why Invoice Finance Makes Sense For Construction
Here are just a few reasons why invoice finance for construction companies is proving so valuable across the sector:
- Bridges long payment terms: Many contractors wait 90+ days for payment. Invoice finance solves this.
- Supports growth: Access working capital to tender for bigger projects.
- Flexibility: Funding grows in line with your turnover, not against rigid loan limits.
- Specialist support: Providers like Bibby, 4Syte, and Lloyds have dedicated construction teams.
Instead of being restricted by slow-paying clients, invoice finance gives you the freedom to plan ahead with certainty.
Final Thoughts
If you’ve ever been told “construction isn’t a sector we finance,” don’t be disheartened. The reality is that invoice finance for construction companies is one of the most effective tools available to manage cash flow and support growth. The market has evolved, and there are lenders who not only understand the risks but are willing to back you.
At Sorbus Finance, we help construction companies find the right facility—whether that’s with Bibby, 4Syte, Lloyds, or one of the many other specialist lenders. We take the time to understand your business, your contracts, and your cash flow cycle, before matching you with the lender that fits best.
Let’s Talk
If you’d like to explore what invoice finance for construction companies could look like for your business:
👉 Book a free consultation with me today
👉 Or drop me an email at lewis.booker@sorbusfinance.co.uk to get started
👉 Download our FREE INVOICE FINANC GUIDE
Because the right finance partner doesn’t just fund your invoices—they help you build with confidence.
—
Written by Lewis Booker, Sorbus Finance