Quick answer — yes, but it depends

Yes — many specialist invoice finance and construction cashflow funders will accept applications for payment and certified valuations from building services contractors, subcontractors and M&E firms. A certified interim certificate or application for payment (signed by the contract administrator) is treated by lenders as stronger evidence of a real, enforceable debt than a supplier-style invoice alone — and that usually improves advance rates and reduces required reserves.

However, funders will always assess: the contract wording (assignment/anti‑assignment), who certified the valuation, whether the employer has a good payment record, the size and frequency of claims, and any retentions or dispute risk.

Get Quote Now / Free Eligibility Check — one short form and we’ll match you to specialist lenders and brokers that handle construction and building‑services funding. (Enquiry = info to match you, not a formal loan application.)

What is invoice finance? (factoring, discounting & construction facilities)

Invoice finance unlocks cash tied up in unpaid invoices or progress claims so you can pay staff, buy materials, and keep projects moving. Key types include:

• Factoring — a funder buys/advances against invoices and typically manages collections.
• Invoice discounting — you retain control of collections; the funder advances against invoices on a confidential basis.
• Spot factoring — one-off funding against a specific invoice or claim.
• Construction-specific facilities — retention funding, staged payment / progress funding and facilities accepting certified interim certificates or applications for payment.

For building services, specialist facilities (staged payment funding, retention release) and funders with construction experience are often the best fit because they understand contract processes like applications for payment and defect retention cycles.

How invoicing works in building services — applications for payment & certified valuations explained

Construction contracts commonly use progress claims rather than simple supplier invoices. Typical workflow:

1. Contractor submits a progress claim or application for payment documenting work completed in a period.
2. A contract administrator (architect, engineer or project manager) inspects the work and issues an interim certificate or valuation confirming the amount due.
3. The employer then pays the certified amount subject to retention, defects holdback and the timescales set out in the contract (JCT, NEC and other forms vary).

Key difference: a supplier invoice is your request for payment — a certified valuation or interim certificate is the contract administrator’s confirmation of what the employer owes. Lenders treat the latter as more enforceable evidence of debt.

Why certified valuations matter to lenders

From a lender’s perspective, certified valuations reduce several risks:

• Dispute risk: certification indicates a neutral third party has agreed the value of the work.
• Enforceability: an interim certificate is frequently clearer evidence of a legally due debt.
• Debtor credit: evidence the employer is contractually obliged to pay supports higher advance rates.
• Fraud reduction: certification limits the risk of fictitious or duplicate claims.

Because of this, certified claims commonly attract better terms (higher advances, lower holdbacks) than uncertified progress claims.

Do invoice finance providers accept applications for payment / certified valuations?

Short practical answer

Yes — many will, especially specialist construction invoice finance providers and brokers. But terms vary depending on contract strength, proof of certification, debtor credit and whether assignment is possible.

When providers will fund certified valuations

• Providers often fund against certified interim certificates or applications for payment if the contract administrator’s signature is present and the employer is creditworthy.
• Certified claims may receive advance rates similar to standard invoices (subject to retentions and reserves).
• Some funders will require evidence that the contract allows assignment or that the employer has acknowledged the claim.

When providers will fund uncertified progress claims

• Some specialist funders will fund uncertified claims but at lower advance rates (eg 50–70%) and with higher fees or additional security (personal guarantees or fixed charges).
• Uncertified claims are treated as higher risk because they are easier to dispute.

If your contract contains anti‑assignment clauses, you’ll usually need the employer’s written consent. Specialist brokers can often negotiate workable solutions or find lenders experienced with complex contract terms.

Free Eligibility Check — Get Quote Now

Documents lenders typically require for building services cases

Providing complete documentation speeds underwriting and improves terms. Commonly requested items:

• Signed contract and schedule of works.
• Interim certificate / application for payment (signed by contract administrator) or valuation report.
• Progress photos, delivery notes, time sheets and site diaries.
• Debtor details and aged ledger showing the claim.
• Evidence regarding retentions and retention schedules.
• Confirmation on assignment (contract wording or employer consent).
• Recent company accounts, bank statements and VAT registration.

The more documentary evidence you have, the higher the advance rate a lender is likely to offer.

What lenders won’t fund — common red flags

• Large, unapproved variations or change orders without certification.
• Active disputes, ongoing quality complaints or outstanding defect notices.
• Employer insolvency, poor payment performance or weak credit profile.
• Anti‑assignment clauses with no employer consent.
• Missing or unsigned interim certificates.
• Very small, fragmented claims where admin costs outweigh benefit.

Disclose any issues up front — surprise problems late in underwriting most commonly cause declines or delays.

How to improve your chances — a practical checklist

1. Secure written certification from the contract administrator where possible.
2. Keep clear, dated progress records and photos linked to each claim.
3. Obtain written employer acknowledgement of applications for payment where practical.
4. Check the contract for assignment clauses and seek employer consent early.
5. Work with a specialist construction invoice finance broker — they know funders’ preferences.
6. Be prepared to accept lower advance rates or short-term reserves for uncertified claims.
7. Consider retention funding or retention insurance if retentions are large or defect periods long.

Get Matched to Specialists — Free Eligibility Check

Real-life examples — three short scenarios

Scenario A — Certified interim certificate: A subcontractor submits an application for payment and receives a certified interim certificate. A specialist funder advances 80–85% of the certified value, retains 5–10% for retention/defect risk, and charges a competitive facility fee. Funds arrive within days of document submission.

Scenario B — Uncertified progress claim: A small M&E contractor has only internal progress claims without certification. A lender offers spot invoice discounting at c.60% advance, higher fees and requests a short-term personal guarantee until the claim is certified.

Scenario C — Retention funding: A contractor wants part of a large retention released. A specialist retention funder provides a limited facility to release a portion of the retention in return for a finance fee and a final account reconciliation on project completion.

Costs, advance rates & holdbacks for construction invoice finance

Typical ranges (indicative — actual terms vary by lender, client and contract):

• Advance rates: 60–90% (higher when claims are certified and the employer has strong credit).
• Fees: arrangement/admin fees 0.5%–3% per month or a fixed plus variable fee structure.
• Holdbacks/retentions: 5–10% or more until final certificate; additional dispute reserves may be applied.

Certified valuations typically attract better advance rates and smaller reserves than uncertified claims.

How UK Business Loans helps (quick matching — no obligation)

We’re an introducer that helps building services businesses find the right finance partners. Complete a short enquiry (takes 2 minutes) and we’ll match you to lenders and brokers experienced in construction invoice finance — including facilities that accept certified valuations, staged payments and retention funding. We don’t lend; we connect you to providers who can help.

Minimum facility sizes we typically arrange start from around £10,000 upwards.

Learn more about options for building contractors and specialist finance on our building services business loans page: building services business loans.

Start Your Enquiry — Free Eligibility Check

Frequently asked questions

Will invoice finance affect my credit score?

Submitting an enquiry via our form does not affect your credit score. Lenders or brokers may perform credit checks only if you choose to proceed with a specific facility.

Can lenders fund retention or final account amounts?

Yes — specialist retention funding products exist, and some funders will advance against final account balances if the client can provide evidence of entitlement and employer solvency.

Will lenders fund uncertified progress claims?

Sometimes — but usually at lower advances, with higher fees or extra security. Certified interim certificates are preferred and generally attract better terms.

What is an application for payment?

It’s a contractual progress claim submitted to the contract administrator for valuation and certification as part of the payment process under construction contracts (eg JCT, NEC).

What if my contract has anti‑assignment clauses?

You’ll normally need employer consent. Specialist lenders or brokers may be able to suggest practical workarounds, such as direct pay arrangements or escrow solutions.

How quickly can I get funds?

If documents are complete and the claim is certified, many specialist brokers/lenders can turn around funding within days. Uncertified claims or complex contracts will usually take longer.

Free Eligibility Check — Get Quote Now

Ready to get a quote?

Complete one short, free enquiry and we’ll match you to lenders and brokers who specialise in construction and building‑services funding. This is not a loan application — it’s a quick eligibility check to connect you with the right partners.

Start Your Enquiry — Get Quote Now