Construction Finance

Paying labour and suppliers before a valuation is agreed creates a different funding problem from buying an excavator. NBS reviews the project stage, payment evidence and cash requirement to identify a sensible starting route for your contracting business.

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Tell us the amount, purpose and timing. NBS reviews a suitable starting route and clarifies what information is needed next. Best estimates are fine.

NBS Finance is a commercial finance broker and introducer, not a lender, and primarily supports UK limited companies. Funding is subject to provider assessment and terms. An enquiry does not guarantee an offer.

Start with the payment stage

A contract award, an application for payment, a payment certificate and cash in the bank are different things. Map the first site costs, application dates, valuation process, contractual due dates and actual receipts. A profitable contract can still require substantial cash before the first payment.

Contractor funding by project stage
Your position Possible starting route What needs checking
Mobilisation before billing A business loan or working-capital review Signed work, contribution, delivery budget and a credible repayment source. An award alone is not an invoice.
Completed work or an application Specialist construction receivables finance Contract terms, applications, notices, certification, deductions and provider verification.
Plant or vehicles needed Asset finance Specific equipment, quotation, useful life, contribution and affordability.
Conditional retention or dispute Separate assessment and payment resolution Release conditions, amount actually due and the reason payment is withheld. Do not count it as available cash.

Use contract mobilisation guidance for the pre-billing budget and construction invoice finance for the receivable. This page helps distinguish those needs; it does not replace contract advice.

Applications, notices and retentions: what can actually support funding?

An application states what you claim. A valuation or certificate may assess a different sum. Payment and pay-less notices can affect the payment position, while retentions, contra charges, variations, set-off and disputes can reduce the amount a provider accepts. Supply the complete payment trail rather than the largest headline figure.

Some specialist providers publicly describe funding certified and uncertified applications. That establishes that specialist routes exist, not that every application qualifies or that NBS has a confirmed offer for your contract. Future work, speculative variations and disputed sums are not automatically financeable. Read contractual debt finance guidance alongside your actual agreement.

Retention release may depend on practical completion, defects obligations or other contractual conditions. Do not treat a retention schedule as an ordinary immediately collectable invoice. HMRC’s retention guidance also distinguishes the payment from the earlier work; tax treatment and funding eligibility are separate questions.

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A valuation is not a cash receipt

Illustrative scenario, not a finance offer: £25,000 of wages and materials falls due before a £40,000 application is assessed. If £35,000 is later agreed, the £5,000 difference needs explanation. Even the agreed £35,000 is not cash today: funding depends on eligibility, any advance, reserves, existing drawings and charges. A further delay in the valuation leaves the £25,000 pre-receipt need in place.

Build a weekly forecast across all live contracts. Include supplier deposits, plant hire, subcontractors, insurance, VAT/CIS obligations where applicable and retentions. Stress-test a delayed certificate and one main contractor paying late. Financing cannot repair a contract that loses money after its true delivery costs.

Keep plant investment separate from wages and materials

A machine purchase has a defined asset, valuation and repayment profile. Plant and machinery finance may spread that purchase; it does not automatically create unrestricted cash for site wages. Refinance requires owned assets, settlement figures and acceptable security. Hiring equipment can be a practical alternative where utilisation is uncertain.

Tell us whether you are a subcontractor, principal contractor or property developer. Borrowing to develop or acquire property has a different assessment from financing a trading subcontractor. For mixed requirements, show each use of money and avoid counting the same asset or debt twice.

Prepare a useful funding review

  • Signed contracts and payment provisions, including retention and set-off clauses
  • Latest applications, valuations, certificates, notices and aged debtor ledger
  • Project budget, labour/material commitments, forecast receipts and delayed-payment scenario
  • Accounts, bank statements, existing facilities/security and plant schedule if relevant

For the first enquiry, give your company, trading history, approximate turnover, amount, purpose, timing and current facilities. Best estimates are fine; say “Not sure” where needed. You do not need every document to begin. Use business-level totals and agree a secure process before sending detailed confidential records.

NBS reviews the requirement and clarifies gaps before assessing possible routes through lenders and specialist partners. The provider decides eligibility and any offer. Read the existing enquiry’s privacy notice and sharing authorisation before submission.

Construction Finance: practical questions

Must an application be certified?

Not in every specialist structure, but neither certification nor submission guarantees eligibility. The provider must assess the contract, work, payment evidence and deductions.

Can finance release disputed retention?

Do not assume so. Separate the dispute and contractual release conditions from the eligible receivable review; obtain appropriate advice on the payment issue.

Can the first site costs be covered before an invoice exists?

Describe the mobilisation budget, contribution and repayment source. It needs a separate working-capital assessment rather than an assumption that ordinary invoice finance funds future work.

Sources and scope

Provider and competitor pages describe their own services, not an NBS lender relationship or offer. Eligibility, access, charges, security and appetite must be checked for your case. Illustrations on this page are hypothetical. This is general business-finance information, not legal, tax or accounting advice.

Review Construction Funding

Explain the business requirement, approximate amount and when the cash or asset is needed. An enquiry does not commit you to accepting finance. Ask for the complete costs, terms and responsibilities before deciding to proceed.

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