Subcontractor Finance UK 2026

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

Subcontractor finance is specialist UK construction invoice finance built for tier-2 and tier-3 subcontractors (M&E, groundworks, fit-out, scaffolding, plant hire, joinery, cladding) waiting on payment from main contractors under JCT or NEC contracts. Construction providers such as Bibby and Ultimate Finance advance a share of each Application for Payment (Ultimate Finance says within 24 hours of the AfP being raised), with the balance released when the main contractor pays. Advance rates are quoted per facility. Often the only way for subcontractors to fund weekly payroll, materials and CIS deductions between AfP submission and certified payment.

What this page covers

This page covers

subcontractor finance UK: tier-2 and tier-3 construction funding, CIS handling, eligibility, 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 subcontractor terms published
Bibby Financial ServicesNot publishedNot publishedLarge subcontractors, includes credit control
IGF Invoice FinanceNot published£5mBusinesses over £5m turnover (asset-based lending)
Ultimate FinanceNot publishedNot publishedConstruction finance for subcontractors
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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Subcontractor Finance UK FAQ

What is subcontractor finance?

Specialist UK construction invoice finance designed for tier-2 and tier-3 subcontractors waiting on payment from main contractors. Funds Applications for Payment under JCT or NEC contracts, usually at a lower advance rate than on VAT invoices.

Why do construction subcontractors need specialist finance?

Subcontractors typically wait 30-60 days from AfP submission to certified payment, but their costs (weekly payroll, materials, CIS deductions, plant hire) are due immediately. Bank overdrafts rarely scale with project growth. Standard invoice finance providers usually decline AfPs because they aren't VAT invoices in the legal sense. Specialist subcontractor finance is built for this gap.

What trades use subcontractor finance most?

Mechanical and electrical (M&E), groundworks, scaffolding, fit-out, joinery, cladding, plumbing, plastering, demolition, plant hire, formwork. Effectively any trade billing main contractors via AfPs under JCT or NEC contracts and waiting 30-60 days for certified payment.

Are CIS deductions a problem for subcontractor finance?

No, providers handle CIS. The advance is calculated on the gross AfP value. CIS deductions (20% standard rate, 30% if not registered, 0% if gross status) come out of the certified payment before it reaches the subcontractor or financier. Reconciliation is straightforward and providers reflect CIS automatically in monthly statements.

What turnover do I need for subcontractor finance?

Pulse Finance asks for £1m turnover and IGF for over £5m. Bibby and Ultimate Finance do not publish a minimum, so ask them directly. For smaller subcontractors (£25k-£50k turnover), spot factoring (Hydr, Triver) on individual invoices may be more accessible.

Best subcontractor finance provider UK?

Bibby Financial Services suits larger subcontractors needing credit control. Ultimate Finance offers construction finance facilities for subcontractors. Get quotes from at least 2.