Retention is the slice of each payment a client holds back until the works are signed off, and often a further period after practical completion. For a construction limited company, that money is earned but sitting in someone else's account, sometimes for a long stretch across two release points.
Why retentions strain working capital
You have already paid for the labour and materials that produced the work being retained. Across several contracts at once, held-back sums add up and can quietly become a large part of what you are owed. If a client is slow to release, or disputes the snagging, that money is delayed further.
How funding helps
A Credicorp facility lets your company keep trading while retentions sit uncollected. Rather than waiting on release dates to start the next job, you can mobilise, buy materials and meet payroll. The borrowing is to the company, and we take no personal guarantees from directors.
- Credicorp Flex suits firms juggling several retention release dates, letting you draw as you need
- Credicorp Slice suits a one-off gap you can size now
- The rate and term are those set out in your offer
Good housekeeping
Track every retention by contract, its release trigger and its date. Chase releases promptly. Funding bridges the wait, but it works best alongside tight collection of what you are owed. Note that this business lending is outside the FCA consumer regime, so FOS and FSCS do not apply.
See also: Funding for recruitment agencies, Funding payroll between customer payments and Managing seasonal cash flow in construction and trades.