The Rising Need for Funding Support in Construction

Why Funding Support Has Become Critical for Construction Firms in 2025

The construction sector has always operated on tight margins, but 2025 has pushed many firms beyond breaking point. Long payment terms, rising costs, retentions, and heavy upfront project expenditure continue to strain cashflow, making reliable funding and risk protection not just helpful, but business-critical.

A Tougher Landscape Than Ever

This year has seen a series of high-profile collapses that have sent shockwaves across the industry. Major names such as Ardmore Construction, Breyer Group, J S Wright, Marbank Construction and Elements Europe all entered administration in 2025- many after decades, even a century, in business.
Behind every failure were the same pressures: delayed payments, escalating costs, thinning margins and debt burdens that became impossible to manage.

It’s not just the big firms. Nearly 4,000 construction businesses in England and Wales became insolvent in the 12 months to July 2025, with subcontractors and specialists among the hardest hit. When a main contractor collapses, projects stall, suppliers go unpaid, and the ripple effects spread rapidly through the supply chain.

Why Funding Support Matters More Than Ever

Against this backdrop, robust financial tools can mean the difference between resilience and risk.

Invoice Finance unlocks cash tied up in applications and invoices, giving firms fast, flexible access to working capital. Instead of waiting weeks or months for payment, construction businesses can immediately cover labour, materials, subcontractors and plant — keeping projects moving and relationships strong.

Credit Insurance provides a safety net when a customer fails or pays late. With insolvencies rising across the sector, protecting against bad debt and non-payment is now essential, not optional.

Together, these solutions create stability in an unpredictable environment:

• Improved cashflow

• Reduced exposure to customer failure

• Confidence to take on larger contracts

• Smoother project delivery and stronger supply-chain trust

Supporting More Construction Firms Than Ever

This year, we’ve supported more construction businesses than at any point in the past decade. Demand has surged because firms are feeling unprecedented pressure - longer payment cycles, increased project complexity, rising material and labour costs, and tighter regulatory demands.

Funding and risk-mitigation tools aren’t just keeping businesses afloat. They’re helping ambitious contractors stay competitive, seize new opportunities, and build sustainably for the long term.