Construction is notorious for lumpy cash flow: costs go out early, money comes in late, and retentions sit unpaid for months. Understanding the pattern is half the battle.
Where the squeeze comes from
You pay for labour and materials up front, invoice in stages, and often wait 30–60 days or more to be paid — with a slice held as retention beyond that. A single delayed valuation can leave a solid firm short of cash.
Managing the pattern
Forecast around the real payment cycle, not the contract value. Agree stage payments and shorter terms where you can, chase valuations promptly, and keep a buffer for the gaps. Watch retentions closely — they are your money.
When a bridge helps
A short-term facility can bridge a genuine timing gap between costs and a confirmed stage payment. The test, as always, is that the money is really coming.
See sector funding at Credicorp for construction, and use a forecast to stay ahead.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: How short-term finance can bridge a temporary cashflow gap, Chasing late-paying customers to ease cashflow, Building a thirteen-week cashflow forecast.