Can I get invoice finance on Applications for Payment under JCT or NEC contracts?
Yes, but only from specialist construction finance providers. Pulse Cashflow, Bibby Financial Services, Ultimate Finance and IGF will lend against AfPs at 60-75% advance rates within 24 hours of submission. Standard invoice finance providers usually decline AfPs because the certified value can be reduced at certification. Fees typically 1-3% of the AfP value, repaid when the main contractor pays the certified amount.
What this means for your business
Applications for Payment (AfPs) are interim payment claims used under JCT and NEC construction contracts, submitted before a formal invoice or payment certificate is issued. Because the value can still be adjusted downward when the contract administrator or quantity surveyor certifies it, most mainstream invoice finance providers will not advance against them.
A handful of specialist construction finance providers, including Pulse Cashflow, Bibby Financial Services, Ultimate Finance and IGF, will lend against AfPs, typically advancing 60 to 75% of the claimed value within 24 hours of submission. This gives contractors and subcontractors cash flow while waiting for the main contractor to certify and pay, rather than waiting weeks for the certification cycle to complete.
Fees sit around 1 to 3% of the AfP value and are repaid once the certified sum is actually paid, so the cost is directly tied to how quickly certification happens.
Key points
- Only specialist construction invoice finance providers will advance against uncertified Applications for Payment, not standard factoring or invoice discounting lenders.
- Advance rates on AfPs are typically lower than on certified invoices, usually 60 to 75% rather than the 80 to 90% seen on standard invoices.
- Funding can often be arranged within 24 hours of the AfP being submitted, which suits the tight cash flow cycles common on JCT and NEC projects.
- Fees of 1 to 3% of the AfP value are charged, and repayment happens once the main contractor pays the certified amount rather than the original claimed amount.
- Because certification can reduce the value, lenders build in a margin of safety, which is why advance rates sit below those for confirmed invoices.
Common pitfalls
The biggest mistake is assuming any invoice finance provider will accept AfPs. Most will decline them outright because the certified value can be reduced or disputed after submission, leaving the lender exposed. SMEs should also budget for the gap between the claimed AfP value and what actually gets certified, since funding is based on the claim but repayment is based on the certified sum.
It is worth checking whether the provider requires a direct relationship with the main contractor to verify certification progress, as this can affect how quickly funds are released and how disputes over valuation are handled.
Related questions
What happens if the certified value is lower than the Application for Payment amount?
The funder's advance is based on the AfP claim, but repayment tracks the certified figure once it is confirmed. Any shortfall is typically deducted from future drawdowns or invoiced back to the contractor, so it is worth keeping a buffer against likely reductions.
Can subcontractors use invoice finance on AfPs, or is it only for main contractors?
Both main contractors and subcontractors working under JCT or NEC arrangements can typically use this type of finance, provided the specialist lender is comfortable with the contract chain and payment terms in place.
Do I need a full invoice finance facility, or can I fund AfPs on a single transaction basis?
Some specialist construction finance providers offer selective or single invoice funding for AfPs, so a full ongoing facility is not always required. This suits contractors who only need funding on specific stage payments rather than their whole ledger.
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.
Last reviewed: 23 July 2026