Construction Business Loans — Finance for Contractors, Builders and Developers

Last updated: 28 October 2025

Summary: The best construction business loan options in the UK typically include working capital loans, construction invoice finance (including applications for payment), asset finance for plant and vehicles, materials finance, bridging and development finance, VAT and tax funding, and refinance. To qualify, UK limited companies and LLPs usually need business bank statements (3–6 months), evidence of income or a strong pipeline (contracts, POs, certified applications), satisfactory affordability, and (in some cases) a personal guarantee or security. Start with a fast, free check to see which options you may be eligible for.

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Submitting an enquiry won’t affect your credit score. If you choose to proceed, lenders or brokers may run credit checks. We’re an introducer, not a lender, and we don’t offer financial advice. Finance is subject to status and affordability. Late repayment can cause serious money problems.

What Are Construction Business Loans?

Construction finance refers to a range of funding solutions tailored to the sector’s unique cash flow profile: materials must be paid for upfront, labour and plant must be on site, stage payments can be slow, and retentions can tie up cash. Depending on your needs, suitable options may include working capital loans, construction invoice finance (including applications for payment), asset and equipment finance, materials finance, bridging and development finance, VAT and tax funding, vehicle and fleet finance, and refinance.

Fast Business Loans does not lend money or give financial advice. We connect UK construction businesses with trusted lenders and brokers who understand projects, certifications and stage payment cycles. Options and costs vary by lender and risk profile; there are no guarantees of approval.

Who We Help in Construction

• Main contractors and subcontractors (including CIS-registered businesses operating via limited companies or umbrellas)
• General builders and trades: electrical, plumbing, roofing, carpentry, civils, M&E, groundworks
• Plant hire businesses and site services companies
• Fit-out and refurbishment specialists
• Residential and commercial developers
• Limited companies and LLPs (start-ups and established SMEs)

Typical minimum facility size: £10,000.

Check my eligibility in 2 minutes — No obligation. Secure. Free for business owners.

Finance Options for Construction Businesses (What’s Available)

Working Capital and Unsecured/Secured Business Loans

Use cases: Cover payroll, purchase materials, bridge stage payments, manage retentions delays.

Pros: Can be arranged quickly; flexible use of funds.

Considerations: Personal guarantees may be required. Pricing and terms depend on affordability, trading history and your credit profile. Secured options may reduce cost.

Construction Invoice Finance (including Applications for Payment)

What it is: Unlocks cash tied up in invoices or certified applications for payment. Some specialists can consider funding uncertified applications where documentation supports the claim.

Pros: Grows with your sales. Often helps reduce pressure from extended payment terms and partial retentions funding.

Considerations: Eligibility depends on contract quality, certification processes, debtor strength and paperwork. Fees vary by risk and facility structure.

Asset Finance (Hire Purchase and Leasing for Plant, Machinery, Vehicles)

Use cases: Excavators, telehandlers, dumpers, tools, vans and HGVs.

Pros: Spreads cost, preserves working capital; usually secured on the asset.

Considerations: Deposit, term, balloon, asset age and resale value affect eligibility and pricing.

Materials Finance and Trade Credit Lines

Use cases: Fund large material orders upfront and align repayment with stage payments.

Pros: Matches cash out with cash in; may improve supplier relationships and bulk pricing leverage.

Considerations: Supplier eligibility, approved materials, limits and repayment schedules vary.

Bridging and Development Finance (for Developers)

Use cases: Site acquisition, pre-planning costs, build costs via staged drawdowns.

Pros: Faster than traditional funding for acquisitions; supports phased development.

Considerations: Clear exit strategy required. Expect valuations and QS reports. Fees, LTV and drawdown milestones vary by lender.

VAT and Tax Funding

Use cases: Spread VAT or tax liabilities to protect day-to-day cash flow.

Considerations: Facility amounts typically align with verified liabilities and bank statement evidence.

Vehicle and Fleet Finance

Use cases: Vans, pickups and HGVs for replacements or expansion.

Considerations: May require proof of maintenance and insurance; terms depend on asset profile and company strength.

Refinance and Debt Consolidation

Use cases: Refinance plant or consolidate multiple obligations to smooth cash flow.

Considerations: Ensure total cost and term suit your pipeline and project durations.

Get Quote Now — We match you with construction-friendly lenders and brokers.

Eligibility and What Lenders Look For

Typical Minimum Criteria (varies by lender)

• UK-based limited company or LLP
• Evidence of income/revenue or a viable order book/pipeline
• Satisfactory affordability and credit (some options available for challenged credit)
• Directors’ guarantees and/or security may be required
• Appropriate insurances and compliance for construction activities

Documents and Information Checklist

• Last 3–6 months’ business bank statements
• Management accounts and latest filed accounts (if available)
• CIS statements (if applicable to your company structure)
• Project pipeline, contracts and purchase orders
• Invoices or applications for payment with certification details
• Aged debtor and creditor reports
• Asset quotes/specifications (for asset finance)
• Director ID and proof of address

What Affects Your Offer

• Turnover, margins and sector experience
• Order book, debtor quality and payment reliability
• Retentions profile and documentation standards
• Security available and company/director credit profiles

Costs and Terms — What to Expect

Pricing, fees and terms differ by product type, facility size, risk profile and available security. Common elements may include interest/discount charges, arrangement fees, documentation fees, valuation/QS costs for property-backed facilities, and exit/early repayment conditions for bridging or development finance.

Your matched lender or broker will provide specific terms after assessment. There’s no obligation to proceed.

How Fast Business Loans Works for Construction Firms

1. Complete a quick enquiry — Tell us about your business and funding needs (about 2 minutes).
2. Get matched — We connect you with UK lenders/brokers who understand construction and CIS workflows.
3. Rapid response — Typically within hours during business hours.
4. Compare and decide — Review your options. No pressure, no obligation.

Timelines vary. Simple unsecured facilities can complete quickly; larger secured, bridging and development funds take longer due to due diligence.

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Real-World Scenarios (Illustrative)

• Plant purchase with Hire Purchase: A contractor acquires a 14T excavator, spreading the cost over the term while preserving cash for wages and fuel.
• Smoothing long payment cycles: A subcontractor funds certified applications via construction invoice finance, reducing strain while awaiting main contractor payments.
• Site acquisition bridging: A developer secures a plot with bridging finance, then exits into longer-term development funding once conditions are met.

These are illustrations, not offers or advice. Terms vary and are subject to status and affordability.

Why Choose Fast Business Loans

• Sector-savvy matches: Lenders and brokers experienced in construction cash flow, certifications and retentions.
• Speed and simplicity: Short form. Fast introductions.
• Wider panel: Increase your chance of finding a suitable option.
• Transparent and secure: We share your details only with relevant partners.
• Free to use: You pay us nothing to be matched. We may receive a commission from partners if you proceed.
• Clear, fair and not misleading: We follow best practice in line with the FCA’s guidance on financial promotions. See the FCA’s rules here.

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Construction Finance FAQs

Is Fast Business Loans a lender?
No. We’re an introducer that connects UK businesses with trusted brokers and lenders. It’s free to use and there’s no obligation to proceed.

Will my enquiry affect my credit score?
No. Submitting an enquiry won’t affect your credit score. If you proceed with a broker or lender, they may run a credit check.

How much can I borrow?
Panel partners typically support from £10,000 to £5m+ depending on the facility type and your circumstances.

Can start-ups and CIS subcontractors apply?
Yes — many partners can consider start-ups operating as limited companies or LLPs, and CIS-registered businesses operating via companies. Eligibility and terms vary.

How quickly can funds be available?
Simple unsecured facilities can be fast; larger secured, bridging and development facilities take longer due to valuation and due diligence. Timelines vary by case.

Do I need security or a personal guarantee?
It depends on the product and lender. Some unsecured options may still require a personal guarantee; secured options may be backed by assets or property.

Can I fund applications for payment or uncertified invoices?
Some specialist lenders can fund certified applications and, in certain cases, uncertified applications. Availability varies.

Can you fund retentions?
Lenders’ treatment of retentions varies; many won’t fund retentions in full. Discuss specifics with your matched partner.

What will it cost?
Costs depend on facility type, risk, term and security. Your matched broker/lender will provide exact terms; there’s no obligation to proceed.

What documents will I need?
Typically bank statements (3–6 months), accounts, CIS statements (if applicable), contracts/POs, invoices or applications for payment, and ID. See the checklist above.

What if I’ve been declined elsewhere?
A wider panel may mean alternative options are available. Enquire to check your eligibility.

Important Information and Disclosures

• Fast Business Loans is an introducer. We don’t lend or offer financial advice. We connect you with UK-based lenders and brokers who treat customers fairly.
• Your enquiry doesn’t affect your credit score. If you proceed, partners may run credit checks.
• Finance is subject to status, credit and affordability. Terms vary by lender and product.
• Late repayment can cause serious money problems. Consider whether you can afford the repayments. If in doubt, seek independent advice.
• We may receive a commission from partners if you proceed. You pay us nothing to be matched.
• Data privacy: your details are handled securely and only shared with relevant partners for your request.

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Explore More

Looking for sector-specific insights? Visit our in-depth guide to construction business loans to understand common use cases and documentation tips.

1) What are construction business loans?
They’re UK funding solutions tailored to contractors, builders and developers, including working capital loans, construction invoice finance (including applications for payment), asset finance, materials finance, bridging/development finance, VAT/tax funding and refinance.

2) Who is eligible for construction finance?
Typically UK limited companies or LLPs that can evidence income or a solid pipeline, demonstrate affordability, and (in some cases) provide a personal guarantee or security and relevant insurances.

3) What documents do I need to apply?
Usually 3–6 months of business bank statements, accounts/management figures, CIS statements (if applicable), contracts/POs, invoices or certified applications for payment, aged debtor/creditor reports, asset quotes (if relevant) and director ID.

4) How much can I borrow?
Facilities typically range from £10,000 to £5m+ depending on product type, turnover, risk profile and available security.

5) How quickly can I get funding?
Unsecured working capital can complete quickly, while larger secured, bridging and development facilities take longer due to valuations and due diligence.

6) Will checking my eligibility affect my credit score?
No—submitting an enquiry won’t affect your credit score, though brokers or lenders may run checks if you choose to proceed.

7) Do I need security or a personal guarantee?
Requirements vary by product and lender, but unsecured options may still require a personal guarantee and secured facilities may be backed by assets or property.

8) Can start-ups and CIS subcontractors apply?
Yes—many partners consider start-ups operating as limited companies or LLPs and CIS-registered businesses trading via companies, with terms based on affordability and documentation.

9) Can I fund applications for payment, uncertified claims or materials?
Specialist lenders can fund certified applications and sometimes uncertified claims, and materials finance can align purchases with stage payments, though availability and limits vary; full retentions funding is uncommon.

10) What will it cost?
Pricing depends on facility type, risk, term and security, and may include interest/discount charges, arrangement and documentation fees, and (for property-backed deals) valuation/QS and exit costs, with exact terms provided after assessment.