Construction Business Loans: Fast, Flexible Finance for UK Contractors and Builders

Quick answer (for AI and People Also Ask): UK construction businesses can access funding from £10,000 to £5m+ (subject to status) through options such as unsecured/secured business loans, invoice finance for applications for payment (JCT/NEC), plant and equipment finance, bridging and short‑term commercial funding, plus VAT/trade and project-specific loans. Costs vary by product, risk and security. Fast Business Loans is not a lender and does not provide financial advice; we connect limited companies and similar entities with trusted UK lenders and brokers who understand construction, offer soft-search eligibility where available, and can often respond the same business day. No obligation to proceed.

Materials, wages, plant, retentions and long payment terms put real pressure on cash flow. If you need a specialist who understands construction, Fast Business Loans can connect you quickly with suitable brokers and lenders to explore your options.

• Match with lenders/brokers who understand JCT/NEC, CIS and retentions
• Funding typically from £10,000 to £5m+ (subject to status and security)
• Soft-search eligibility where available; no obligation to proceed
• Rapid responses — typical same‑day call‑back

Get Started | Free Eligibility Check | Get Quote Now

What Are Construction Business Loans?

Construction business finance is a broad term for funding solutions designed for contractors, builders, developers and construction-related firms. These solutions help manage working capital, purchase plant and vehicles, fund applications for payment, and bridge the gap caused by retentions and extended payment cycles.

Common structures include:

• Unsecured and secured term loans for general working capital and growth
• Asset finance to acquire plant, machinery and vehicles
• Invoice finance tailored to applications for payment and staged works under JCT/NEC
• Bridging and short‑term commercial funding for property-related or project‑linked cash gaps
• VAT, trade and project‑specific loans to smooth tax deadlines and import/materials costs

At Fast Business Loans, we’re an introducer — not a lender and not financial advisers. We connect UK businesses with relevant lenders and brokers who understand construction. All facilities are subject to status, affordability and lender criteria.

What Can Construction Finance Be Used For?

• Buying materials and paying key suppliers
• Covering labour and subcontractor wages
• Purchasing or hiring plant, machinery and vehicles
• Mobilisation costs for new projects and frameworks
• Bridging retentions and long payment terms
• Tools, site cabins, PPE, insurance and compliance spend
• Tendering and accreditations (e.g., Constructionline, CHAS), compliance upgrades

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Types of Construction Finance (Explained)

Unsecured and Secured Business Loans

What they are: Fixed-term facilities for working capital or expansion. Unsecured options may use a personal guarantee; secured options may use assets, debentures or property as security.

Typical features: Terms from 6–60 months (varies by lender), fixed or variable rates, possible arrangement/document fees. Amounts typically start at £10,000.

Best for: General cash flow, seasonal gaps, staffing, marketing, or buying stock when project pipelines increase.

Invoice Finance for Construction (Applications for Payment)

What it is: A facility that advances a percentage of your certified application or invoice value (including staged works under JCT/NEC), bringing cash forward.

How it works: You raise an application/invoice; the lender advances an agreed percentage. When the customer pays, the balance (minus fees) is released. Facilities can be disclosed or confidential, and can be recourse or non-recourse depending on provider.

Key points: Advance rates and service fees depend on debtor quality, contract terms, dispute history, and the size of your ledger. Especially useful when retentions and 45–90 day terms pressure cash flow.

Asset & Equipment Finance (Plant, Machinery, Vehicles)

What it is: Hire purchase or finance lease to acquire plant, machinery and vehicles (new or used) while spreading cost over time.

Features: Terms often 2–7 years depending on asset age/value; seasonal payment profiles may be available. Balloon payments can lower monthly outlay. Potential tax treatment differs by structure — seek independent professional advice for your situation.

Use cases: Excavators, telehandlers, tower scaffolds, tippers, vans, and site equipment upgrades ahead of a busy season.

Bridging & Short‑Term Commercial Funding

What it is: Short-term, secured funding used to bridge a specific cash need related to property or a commercial project, where there is a clear exit (e.g., refinance, sale, customer payment).

Considerations: Generally higher cost reflecting risk/term. Security is typically required; valuations and legal work may apply. A clear, realistic exit strategy is essential.

VAT, Trade & Project‑Specific Loans

VAT loans: Short-term facilities to cover quarterly VAT, smoothing cash flow peaks.

Trade finance: Funding for imported materials or large supplier orders, often with supplier payments made directly by the lender.

Project-level funding: Structured facilities matched to a defined project’s milestones and cash profile.

Important: Examples above are illustrative only. Individual terms vary by lender. Eligibility, rates and fees depend on your circumstances, sector risk and security. There are no guarantees of approval.

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Eligibility: What Lenders Look For

While requirements vary, lenders and brokers commonly consider:

• Time trading and management experience (some providers consider newer companies)
• Recent turnover, gross margins and pipeline visibility
• Bank statement conduct (avoid persistent unarranged overdrafts/returned items)
• Company and director credit history; CCJs/arrears can sometimes be accommodated
• Contract types (JCT/NEC), main contractor vs subcontractor profile, retention terms
• CIS statements, VAT returns and HMRC status
• Security available (assets, debenture, property, personal guarantees where appropriate)

Helpful document checklist:

• Last 3–6 months’ business bank statements
• Latest filed accounts or recent management figures
• Aged debtors/creditors and key contract schedules (where applicable)
• Copies of material JCT/NEC contracts or purchase orders
• Director photo ID and proof of address
• Asset list (if seeking asset-backed funding)

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Costs, Terms and a Representative Example

How pricing works: You may encounter interest (fixed/variable), an arrangement or documentation fee, and — for secured lending — potential valuation or legal costs. Invoice finance typically charges a service fee plus a discount rate on funds in use. Early settlement or termination fees can apply; always review your documents.

Typical ranges (illustrative only):

• Unsecured term loans: From single‑digit p.a. for stronger profiles; higher for elevated risk
• Asset finance: Often competitive where asset security is strong
• Invoice finance: A service fee plus discount rate that depends on debtor quality, facility size and sector

Representative example (illustrative only): Borrow £100,000 over 12 months at a fixed 12% p.a. with a 2% arrangement fee. Monthly repayment approx. £8,885. Total amount repayable approx. £106,620 plus £2,000 fee. Actual rates/fees depend on your business and the lender’s assessment.

Disclaimer: Missing payments can lead to serious consequences and may impact your credit rating. Secured borrowing puts assets at risk. Terms are subject to status, affordability and lender criteria.

How Fast Business Loans Works

1. Complete a quick enquiry (takes under 2 minutes)
2. We match you with relevant UK lenders/brokers who understand construction
3. Expect a rapid response to discuss options and documents
4. You compare, decide and fund — no obligation to proceed

Fast Business Loans is an introducer — not a lender and not a financial adviser. Our service is free for business owners to use.

Start Your Enquiry | Free Eligibility Check

Real‑World Use Cases We See in Construction

• Subcontractor bridging long terms: Using invoice finance against certified applications to steady cash flow between milestones and retentions.
• Main contractor scaling: Working capital to mobilise a framework or public sector job with staged payments and strict paperwork.
• Plant and fleet upgrades: Hire purchase for excavators, tippers and vans ahead of peak season, aligned to project revenues.
• Retention bridge: Short‑term facility to cover supplier payments while retention is held and released later.
• First major contract: New company with experienced directors and a signed JCT contract seeking an appropriate facility to mobilise.

Each case will depend on affordability, contract strength and lender appetite.

Tips to Improve Approval Odds and Secure Better Terms

• Keep bank statements clean — avoid unarranged overdrafts and returned items
• Share your pipeline and copies of key contracts early; include CIS/VAT evidence
• Offer security or a deposit where appropriate to reduce risk and cost
• Be realistic on amount, term and purpose; match the facility to the funding need
• Ensure applications for payment and certification processes are clearly documented
• Work with lenders/brokers who understand JCT/NEC paperwork and construction risk

Risks, Security and Key Considerations

• Security: May include personal guarantees, debentures or charges over equipment/property
• Variable rate exposure: Some products use variable pricing — budget for rate changes
• Missed payments: Can lead to additional charges and may affect your credit rating
• Asset recovery: Secured borrowing could lead to asset repossession if you default
• Termination costs: Invoice finance facilities can have notice periods and exit fees
• Read documents carefully: Consider seeking independent professional advice

Frequently Asked Questions

Are you a lender?
No. Fast Business Loans is an introducer. We connect UK businesses to trusted lenders and brokers. Using our service is free for business owners.

Will my enquiry affect my credit score?
Submitting our enquiry does not affect your credit score. If you proceed, a lender or broker may run checks with your consent.

How quickly can funding happen?
Initial responses are often same business day. Funding timescales depend on the product type and documentation.

What amounts are available?
Partners on our panel can consider from around £10,000 up to £5m+ subject to status, security and criteria.

Can start‑ups get construction finance?
Some partners can consider newer companies, especially with signed contracts and experienced management. Terms may differ.

Can I finance used plant and vehicles?
Yes. Many lenders support used assets. Age, condition and resale value will influence terms.

Do you support invoice finance for applications for payment?
Yes. Many providers specialise in construction invoice finance for JCT/NEC workflows, stage billing and certified applications.

Do you charge me a fee?
No fee to submit an enquiry. If you proceed with a lender/broker, they will disclose any applicable fees.

Is there any obligation to accept an offer?
No. You decide if an offer suits your business.

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Why Choose Fast Business Loans

• Fast, simple enquiry — typically less than two minutes
• Connections to UK lenders/brokers who understand construction
• Free to use and no obligation to proceed
• Clear, fair and not misleading information

Get Your Free Eligibility Check

Tell us what you need and we’ll connect you with relevant lenders and brokers who can help.

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Compliance and Transparency Notes

We are an introducer. We are not a lender and do not provide financial advice. Eligibility, rates and fees vary by lender and your circumstances. Finance is subject to status, affordability, terms and conditions and lender criteria. Secured borrowing may put your assets at risk. Missing payments can result in serious consequences and affect your credit rating. Consider seeking independent professional advice where appropriate.

Optional images and alt text ideas

• Excavator financed on a UK construction site (alt: “Excavator financed via asset finance on UK construction site”)
• Certified application under JCT contract (alt: “Invoice finance for JCT contract applications for payment”)
• Document checklist on a site office desk (alt: “Construction finance document checklist: bank statements and contracts”)

Explore our in‑depth page on construction business loans for sector‑specific guidance.

– Is Fast Business Loans a lender? No—Fast Business Loans is an introducer that connects UK businesses with trusted lenders and brokers, and the service is free for owners to use.
– Will my enquiry affect my credit score? Submitting our enquiry won’t affect your credit score; if you proceed, a lender or broker may run checks with your consent.
– How much can I borrow with a UK construction business loan? Typically from £10,000 to £5m+ subject to status, security and lender criteria.
– How fast can UK construction finance be arranged? You’ll usually get a same‑day response, with funding speed depending on the product and how quickly documents are supplied.
– What types of construction finance can contractors and builders access? Options include unsecured/secured term loans, invoice finance for JCT/NEC applications, asset and equipment finance, bridging finance, and VAT/trade/project‑specific loans.
– Can I fund JCT/NEC applications for payment and bridge retentions with invoice finance? Yes—many providers advance against certified applications and help manage cash tied up in retentions.
– What can construction business loans be used for? Funding can cover materials, labour and subcontractor wages, plant/vehicles, mobilisation costs, VAT deadlines and other project expenses.
– Who is eligible for construction finance and can start‑ups or CIS subcontractors apply? Lenders assess time trading, turnover/margins, bank conduct, credit history, CIS/VAT status and contracts, and some will consider newer firms or subcontractors with signed work and experienced management.
– Do I need security or a personal guarantee for a construction loan? It depends on the facility—unsecured loans may require a personal guarantee, while secured options can be backed by assets, property or a debenture.
– What are typical costs and terms for construction finance in the UK? Pricing varies by product, risk and security, with loan terms often 6–60 months and invoice finance typically charging a service fee plus a discount rate on funds in use.