Construction business loans: How long to arrange invoice or contract finance?

Summary: For construction businesses, straightforward invoice finance can be matched and pre-qualified within hours and funded within 24–72 hours after approval. Contract finance (including retention and milestone funding) typically takes 1–4 weeks because of legal checks and contract assessments; complex public-sector or large-project deals may take 4–8+ weeks. Complete the short enquiry to get matched quickly and receive no‑obligation quotes. The enquiry is not an application — it’s information to help match you.

How quickly can you get invoice or contract finance for a construction company?

Short answer: if you have clean, undisputed invoices or straightforward contracts, you can often get an indicative offer the same day and cash within 24–72 hours once the lender has completed checks and received documents. If your request involves retention assignments, public sector contracts, legal security or complex project structures, expect 1–4 weeks or longer.

Note: UK Business Loans is an introducer — we do not lend money or give regulated financial advice. Your enquiry is not an application; it helps us match your business to lenders and brokers who will provide terms and complete checks.

Quick answer: Typical timelines at a glance

• Initial enquiry & match: hours to 1 business day
• Pre‑qualification / indicative terms: same day to 3 days
• Document gathering & KYC: 1–7 days (faster with electronic copies)
• Underwriting & due diligence: 48 hours to 3 weeks
• Facility set‑up & funding: 24–72 hours after approval for simple invoice finance; 1–4+ weeks if legal/security is required
• Complex or bespoke deals: 4–12+ weeks

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What are invoice finance and contract finance?

Invoice finance lets a business unlock cash tied up in unpaid invoices. A provider advances a percentage of the invoice value (the advance rate) and collects payment from your customer; the remaining balance (less fees) is released once the customer pays. Construction firms commonly use this to manage labour and materials while waiting for payments.

Contract finance (sometimes called retention finance, milestone finance or project finance) is structured around contracts rather than individual invoices. It can include advances against staged payments, retention releases, or lending against the value of a contract. Contract finance often requires legal assignment of proceeds, site/project verification and additional safeguards — which is why it often takes longer to set up.

Providers include specialist invoice financiers, alternative lenders and brokers who package the best options for your business. For sector-specific options see our construction business loans page for more detail: construction business loans.

Typical step‑by‑step timeline and what happens at each stage

Stage 1 — Enquiry & match (hours to 1 business day)

You complete a short enquiry with key facts (turnover, contract values, debtor profile, required facility). We match you to lenders and brokers who specialise in construction. A matched broker or lender usually contacts you the same day to scope the deal.

Tip: be clear about contract durations, retentions and the size of the facility to speed up matching.

Stage 2 — Pre‑qualification / indicative terms (same day to 3 days)

With basic information lenders can give indicative rates, advance rates and likely security requirements. This is non‑binding and doesn’t involve full credit checks in many cases.

Stage 3 — Document request & KYC (1–7 days)

Lenders request documents: contracts, invoices, bank statements, management accounts, director ID. Good organisation and electronic copies make this stage far quicker.

Stage 4 — Underwriting & due diligence (2 days to 3 weeks)

For invoice finance: debtor credit assessments and standard checks can be completed within 48–72 hours once documents are supplied. For contract/retention finance: legal reviews, contract validation, possibly site visits or independent valuations are common — extending times to multiple weeks.

Stage 5 — Facility set‑up, contracts & funding (24–72 hours after approval; longer if legal/security needed)

Simple unsecured facilities frequently allow funds to be drawn within 24–72 hours of approval. If a solicitor is required to register charges, or if retention assignment needs a formal deed, plan for 1–4 weeks. Once live, drawing against qualifying invoices or milestones is usually instant.

Stage 6 — Complex cases / bespoke deals (4–12+ weeks)

Large projects, cross-jurisdiction contracts, disputed work or weak trading histories require more time for negotiation, security arrangements and legal sign-off.

Construction‑specific factors that affect setup time

• Contract type: staged payments vs one-off invoices, retention clauses and collateral warranty requirements.
• Client type: public sector clients often need extra checks and longer verification.
• Project size & complexity: multi‑phase developments take longer to underwrite.
• Security requirements: solicitors add time for legal charges/debentures.
• Supply chain complexity: multiple sub‑contractors or disputed claims slow progress.
• Company history & credit: newer companies or adverse credit can extend due diligence.

Speed‑up actions: gather copies of contracts, recent management accounts, bank statements and clear evidence of retentions or milestone schedules before you start. A tidy, digital pack reduces the process from weeks to days for many requests.

Documents checklist lenders commonly request

• Company accounts (last 1–3 years) and recent management accounts
• Cashflow forecast and aged debtor ledger
• Copies of relevant contracts, purchase orders and invoices
• Bank statements (3–6 months)
• Director ID and proof of address (for KYC)
• Subcontractor agreements, retention certificates and any collateral warranty documents
• Details of existing security (charges, mortgages)

Quick examples (mini case studies)

Example 1 — Sub‑contractor with clean invoices: A small sub‑contractor with undisputed private‑sector invoices provided documents electronically, was matched same day, approved within 48 hours and had funds available within 72 hours.

Example 2 — Main contractor with large public works contract: A main contractor seeking retention finance for a public contract required assignment of retention and solicitor involvement. The process took 3–6 weeks due to legal checks and client approvals before funding could start.

How UK Business Loans helps speed things up

We streamline the start of the process: complete one short enquiry and we quickly match you to lenders and brokers who specialise in construction finance. That reduces wasted time and the need to repeat the same information to multiple providers. Our service is free and there’s no obligation — the enquiry simply helps get you fast, relevant responses.

We’ll flag the right product for your situation — invoice finance for fast access to unpaid invoices, or contract/retention finance if funding is tied to milestones or retentions. Our partners will carry out the checks and present terms; you decide whether to proceed.

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Ready to get started?

If you need funding from around £10,000 and up, start with a quick, free enquiry. It takes a couple of minutes and is not an application — it simply helps us match you to the best lenders and brokers who can provide quotes and next steps.

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Frequently asked questions

How long does invoice finance take to set up for a construction company?

Typical turnaround for simple invoice finance: 24–72 hours from approval; full process from enquiry to live facility often 2–7 days when documents are ready.

How quickly can contract finance be set up for a construction firm?

Contract and retention finance commonly takes 1–4 weeks because of legal checks; large public contracts can take longer.

Can I get funding the same day?

Some invoice financiers can release funds within 24 hours of approval. Same‑day funding is possible but depends on documents, KYC and the provider’s processes.

What information speeds up approval?

Provide digital copies of contracts, invoices, bank statements, management accounts and clear details of retentions or milestone schedules.

Will applying affect my credit score?

Submitting an enquiry via UK Business Loans will not affect your credit score. Lenders may run checks only when you proceed to a formal application.

Do you charge for matching me to lenders?

No — the matching and eligibility check is free and without obligation.

Trust signals & reassurance

• Free & confidential enquiry — not an application.
• Quick matching to lenders and brokers experienced in construction finance.
• Typical responses often within hours where cases are straightforward.
• We work with a wide panel of UK finance partners to increase the chances of a suitable match.

Privacy & KYC: when you proceed, partners will perform identity checks and may request documents to meet anti‑money‑laundering and lending standards. Your enquiry helps them scope the right solution — you’re under no obligation to accept any offer.

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If you want sector-specific guidance or examples of lenders who specialise in the industry, start your enquiry or contact our team and we’ll match you with providers who understand construction cashflow, retentions and contract structures.

1. How long does invoice finance take to set up for a construction company?
Typical invoice finance for construction firms can be approved within 24–72 hours after documents are supplied, with the full process from enquiry to live facility often taking 2–7 days for straightforward cases.

2. How long does contract or retention finance take for construction projects?
Contract and retention finance usually takes 1–4 weeks because of legal checks and contract assessments, with large or public‑sector projects sometimes taking 4–8+ weeks.

3. Can I get same‑day funding for construction invoice finance?
Some invoice financiers can release funds within 24 hours of approval and same‑day funding is possible, but it depends on document readiness, KYC checks and the provider’s processes.

4. Will submitting an enquiry affect my credit score?
No — submitting an enquiry via UK Business Loans does not affect your credit score; lenders may run formal checks only if you proceed with an application.

5. Is the UK Business Loans enquiry an application?
No — the short enquiry is just to match you with relevant lenders and brokers and is not a loan application or regulated financial advice.

6. How can I speed up approval for construction finance?
Speed up approval by supplying digital copies of contracts, unpaid invoices, management accounts, bank statements and clear retention or milestone schedules up front.

7. What documents do lenders commonly request for construction invoice or contract finance?
Lenders typically ask for company accounts, recent management accounts, aged debtor ledger, copies of contracts and invoices, bank statements, director ID and details of existing security or retentions.

8. How much funding can I access through lenders matched by UK Business Loans?
Our lender network can arrange funding from around £10,000 up to millions, depending on the product, security and your business profile.

9. Do you charge to match my construction business with lenders or brokers?
No — UK Business Loans’ matching and eligibility check is free and without obligation; any fees will be disclosed by the lender or broker if you choose to proceed.

10. Which types of finance suit construction businesses best — invoice finance or contract/retention finance?
Invoice finance is ideal for unlocking cash from undisputed invoices and improving working capital quickly, while contract/retention finance suits projects with staged payments, retentions or milestone funding that may require legal assignment and longer setup.