Unsecured routes had not worked. £70K refinanced HMRC and short-term debts.
Project income was due later; HMRC and short-term debts were due now. We restructured them into one facility.
How structural, civil and building services consultancies fund slow contractor payments, framework growth and survey kit, and what lenders will question.
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In short
Invoice finance and revolving credit suit firms billing contractors and developers monthly, unsecured loans fund hires and software, and asset finance covers survey and site-investigation kit. Lenders look closely at who the debtors are, set-off risk on contractor accounts, PII exclusions and reliance on a few large frameworks or clients.
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About engineering consultancy finance
They carry salaried, chartered staff and expensive software, but are paid by developers, contractors and public bodies who each have their own reasons to pay slowly. This page is for directors of structural, civil, MEP and building services, geotechnical and environmental engineering practices. Smart Funding Solutions is a broker, not a lender: we search our panel of 300+ lenders and arrange funding from £10,000 to £10 million. It forms part of our professional practice finance section.
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A transaction we arranged
£100,000
£100K to fund an acquisition and its deferred consideration.
The lender needed to assess the deal, not a generic loan request. We presented the acquisition and the business together.
Read the transactionThe funding question changes as a practice moves from its first day to its next owner. These are the points where it usually arises.
Starting Opening a new practice With no trading record yet, lenders look closely at your experience and a credible plan. Start-up funding →
Acquiring Buying a practice Funding structured around the transaction: the goodwill, the income being bought and, sometimes, the premises. Acquisition finance →
Growing Adding capacity A new site, more rooms or more people, funded ahead of the income they will bring. Growth and working capital →
Investing Equipment and fit-out Spreading the cost of equipment, technology and refurbishment over its working life. Asset finance →
Refinancing Restructuring borrowing Bringing several facilities into one structure that fits how the income arrives. Refinancing and consolidation →
Succession Partner exits and succession Buying out a partner or director, or funding the next owner, without draining working capital. Buying out a director → Most consultants work under an appointment such as the ACE agreement, an NEC Professional Service Contract or a developer's own amended form, billing monthly on time or on a percentage of fee against progress. Because a consultant's appointment on a building project is usually a construction contract, the Housing Grants, Construction and Regeneration Act gives rights to interim payments, payment and pay less notices, and adjudication. Those rights help recover fees, but they do not speed up cash on the day payroll is due.
The recurring pressure points are specific to the sector:
Invoice finance in construction-related work carries a specific risk: if a contractor disputes a fee, the funder can ask you to repay the advance, just when cash is shortest. Keep facility limits below what your cleanest debtors can support. Personal guarantees are common on unsecured lending, and a practice with high exposure to a single contractor should ask whether borrowing solves the problem or only defers it. Credit insurance on the largest contractor accounts, tighter payment terms in new appointments and stopping work under the Construction Act's suspension rights are all alternatives to borrowing.
Where the funding need is really about ownership, such as a founder retiring or senior engineers buying in, see partner buy-in finance or management buyout finance rather than stretching a working capital facility. Practices that also offer building control services face separate registration and run-off insurance costs, covered in our page on building control approver finance.
the mix of public bodies, developers and contractors, and the financial strength of the largest contractor accounts.
whether any client has raised design defects, delay claims or counterclaims that could reduce what it pays.
how much design work has been done ahead of the fee stage it will be billed at.
signed appointments and framework call-offs, not just bids in progress.
limits, excess and exclusions, particularly for fire, cladding and façade work, compared with what current appointments require.
the number of Engineering Council registered engineers and how much of the client base follows one or two directors.

| Option | Suits | Trade-off |
|---|---|---|
| Invoice finance | Firms with a steady book of monthly invoices to developers, public bodies and larger contractors | Funders are wary of applications for payment and of contractor debtors who may set off counterclaims |
| Selective invoice finance | One large invoice stuck on a slow payer | Higher cost per invoice; debtor must be acceptable to the funder |
| Working capital loan | Framework mobilisation, hiring ahead of a secured project | Fixed repayments continue if the programme slips |
| Revolving credit facility | Recurring gaps between monthly billing and payment | Commitment fee in some structures; usually a personal guarantee |
| Asset finance | Laser scanners, GNSS and total stations, drilling rigs, monitoring equipment, workstations | Software licences are harder to fund this way than hardware |
| Tax funding | VAT or corporation tax arriving in a slow-paying month | Short-term cost for a timing problem |
For a practice waiting on one slow-paying client, it is worth using statutory rights first: the right to charge interest on late commercial payments and adjudication can both change a debtor's priorities. Our guide to chasing late invoices covers the practical steps.
Rarely in full. Many invoice finance providers only advance against invoices for certified or agreed amounts, because an application can be reduced by a pay less notice. Consultancies billing on time charges usually find it easier than those billing on percentage progress.
Cautiously but not negatively. A long-running public sector framework is dependable, but lenders will ask when it is retendered and what share of fees comes from it. Presenting other clients and the retender timetable helps. Our surveyor firm finance page covers similar framework dependence in surveying.
Yes, usually as separate facilities: asset finance secured on the rig and working capital for the consultancy side. Keeping them separate protects the working capital limit from being used up by equipment.
Yes, lenders can fund a corporation tax or VAT bill so the consultancy pays HMRC on time and repays the lender in monthly instalments. This suits practices whose cash is tied up in unpaid fees from slow-paying contractors or developers. Lenders look at the firm's accounts, the tax liability and its fee pipeline. Our page on corporation tax loans explains how tax funding works.
Yes, premium finance lets a consultancy pay its professional indemnity premium in instalments over the policy year rather than in one lump sum. That matters for structural and civil practices whose premiums are large and fall due whatever the state of the fee pipeline. The cost depends on the premium and the firm's finances. See our page on PII premium finance for how it works.
Project income was due later; HMRC and short-term debts were due now. We restructured them into one facility.

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What our clients say
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