Construction runs on the widest payment gap of any sector we fund. Materials and labour go out at the start of a job; the money comes back after certification, retention and whatever the main contractor decides about timing. Growth makes it worse, not better — every new contract widens the hole before it fills it.
Why winning more work makes cash worse
Take a firm on 60-day terms running £40,000 of monthly costs on site. At any moment, roughly £80,000 of its own money is sitting in work already done and not yet paid for. Win a second contract of the same size and that figure doubles — before a penny of the new margin arrives.
Retention makes it sharper still: 5% held for twelve months on every job is a permanent slice of your own capital financing someone else's project.
What operators in this sector actually fund
- Materials for a contract already won, before the first valuation is certified
- Payroll and subcontractor payments across a certification gap
- Plant or vehicle purchase when hire costs exceed ownership
- Bridging retention released twelve months after practical completion
- Taking on a second contract without waiting for the first to be paid
A £50,000 advance, both terms
A groundworks contractor wins a £180,000 contract and needs £50,000 for materials and labour before the first valuation. On our published rates that costs:
| £50,000 advance | 20 weeks | 26 weeks |
|---|---|---|
| Approved advance | £50,000 | £50,000 |
| Arrangement fee (5%, deducted at funding) | −£2,500 | −£2,500 |
| Paid to your account | £47,500 | £47,500 |
| Factor rate | 1.48 | 1.55 |
| Total repayable | £74,000 | £77,500 |
| Weekly payment | £3,700 | £2,981 |
| Total cost on cash received | £26,500 | £30,000 |
Illustrative, using our published factor rates. Your own rate is set by underwriting and is stated in pounds on your agreement before you sign it.
Whether you qualify
Four minimums. Meeting them is not the same as being approved — it is the point at which applying is worth your time:
- UK limited company or LLP — incorporated and registered at Companies House.
- 6+ months trading — six months is the least we can work with.
- £10,000+ monthly turnover — consistent, and visible in the business bank account.
- Active UK business current account — this is where the underwriting actually happens.
If the gap you are funding is specifically unpaid invoices to creditworthy commercial customers, say so when you apply — invoice finance may be cheaper for that shape. We would rather point you at the right product than sell you the wrong one.
Why the decision being ours matters here
Construction is the sector where panel brokers waste the most time. Files get bounced between lenders on sector codes, then come back with an offer that arrived after the materials were needed. Solvo lends its own money and makes one decision — which means a straight answer in days, not a tour of the market.
Solvo funds £10,000 to £75,000 from its own book, usually within 24–72 hours of final documents. One decision, made by us — your file is not shopped around a panel. Above £75,000 we arrange the facility with a lending partner. A 5% arrangement fee is deducted from the advance at funding.
About 3 minutes. No obligation. Limited companies and LLPs only.
Frequently asked questions
Do you fund CIS subcontractors?
We fund UK limited companies and LLPs. If the company is incorporated, trading 6+ months, turning over £10,000+ a month through a business current account, CIS status does not rule it out — the account behaviour matters more.
We are profitable but always short of cash. Is that a red flag?
No — in construction it is the normal shape. Profit sits in certified work; cash sits in the future. Underwriting looks at whether the pattern is consistent and whether the account is managed well through it.
Can we borrow against retention?
Retention is part of the picture underwriting considers, but the advance is priced against overall trading, not secured on any single receivable. That is why the decision can be made quickly.
What if a main contractor pays late and we miss a weekly payment?
Tell us before it happens, not after. We lend our own money, which means we can talk about the actual situation — but only if the conversation happens early. Silence is what turns a manageable week into a problem.
Illustrative only. Solvo Funding is a UK direct lender for limited companies and LLPs and also acts as an intermediary for facilities above £75,000. Advances are subject to underwriting; meeting the minimum criteria is not the same as being approved and we cannot guarantee an offer. Finance for limited companies and LLPs is generally not regulated by the Financial Conduct Authority.