Retentions Release Finance UK 2026

Market Invoice is an independent UK invoice finance comparison site that ranks 87 UK invoice finance providers.

Retentions release finance is specialist UK construction finance that advances cash today against retentions (commonly 3 to 5 percent of contract value, as set in the contract) held back by a main contractor or developer. Usually half is released at practical completion and the rest at the end of the defects or rectification period, often 12 months later, and late release is common. Few providers publish a retentions product or its terms, so the advance and fee are quoted per facility. Illustrative example: a £500k subcontract with 5 percent retention holds back £25,000; if half comes back at practical completion, the other £12,500 waits for the end of the defects period, and a 70 percent advance against it would release £8,750 now. The biggest unlock for tier-2 subcontractors with multiple completed projects each carrying retention overhang.

What this page covers

This page covers

retentions release finance UK: how to unlock cash today against construction retentions, advance rates, fees, best providers

Not covered here

General invoice finance education (see /guides/), individual provider reviews (see /providers/), full pricing breakdown (see /guides/costs/)

UK providers worth knowing

ProviderFee fromMin turnoverWhy it fits
Pulse FinanceNot published£1mConstruction named, but no retention product published
Ultimate FinanceNot publishedNot publishedConstruction finance for subcontractors; no retention terms published
Bibby Financial ServicesNot publishedNot publishedConstruction proposition; ask about retentions
AP

Adam Parker

Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd

Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.

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Retentions Release Finance UK FAQ

What is retentions release finance?

Specialist UK construction finance that advances cash against retentions held back by a main contractor or developer until practical completion and the end of the defects period. The provider lends part of the retention value today, charges a fee, and is repaid when the retention is released. Advance rates and fees are quoted per facility.

How much retention is held on a typical UK construction project?

Commonly 3 to 5% of contract value; the percentage is whatever the contract states. Usually half is released at practical completion and the other half at the end of the defects or rectification period (often 12 months after practical completion). On a £1m project with 5% retention, that's £50k held back, with £25k released at PC and £25k released at the end of the defects period.

How much cash can I release from a £25k retention?

It depends on the advance rate and fee you are quoted; no provider publishes these for retentions. Illustrative example only: against £25k of retention due in 12 months, a 70% advance gives £17.5k now. If the fee were 6% of the retention (£1.5k), the provider would collect the £25k on release, keep its £17.5k advance and the £1.5k fee, and pass you the remaining £6k.

The cost is £1.5k for 12 months' use of £17.5k, about 8.6% annualised. If the retention is released late, the fee structure decides whether that costs you more.

Is retentions release finance expensive?

It depends on the fee and how long the retention stays outstanding. Convert any quote to an annualised cost, as in the example above, and check how the fee changes if the retention is released late. A subcontractor with several completed projects can have a meaningful amount of cash tied up in retentions, and releasing part of it can fund mobilisation on the next project.

Will my main contractor know I've financed the retention?

Yes typically. Retentions release uses an assignment of the retention right to the lender, which the main contractor needs to acknowledge in writing for the lender to be in control of the future payment. Some providers offer 'silent' facilities where the contractor isn't notified, but expect a lower advance rate and stricter eligibility.

Best retentions release finance providers UK?

Few UK providers publish a retentions release product. Start with construction finance providers that fund your AfPs (Ultimate Finance, Bibby and Pulse Finance all name construction) and ask whether they will advance against retentions. Get quotes from at least 2 because pricing varies widely by project type and main contractor strength.