Quick summary

Construction business loans help UK contractors and developers manage cash flow gaps, buy plant and vehicles, fund materials, cover VAT, and finance developments or bridging needs. Fast Business Loans is a free introducer that matches limited companies and incorporated contractors with relevant UK lenders and brokers for facilities from £10,000 and up. Options may include working capital loans, construction‑friendly invoice finance, asset and equipment finance, materials/trade finance, VAT loans, bridging and development finance. Enquiries take minutes, there’s no obligation, and a soft search applies at the enquiry stage. Free Eligibility Check.

Why construction businesses use finance

UK construction firms regularly face cash flow pressure from stage payments, applications for payment, and retentions—often 3–12 months after work is complete. Add rising materials costs, subcontractor and labour bills, CIS and PAYE timings, seasonal variations, and the need to maintain or expand plant and fleets, and it’s clear why flexible funding helps projects stay on track.

Construction finance can smooth gaps between outlay and reimbursement, support mobilisations for new contracts, unlock cash from certified applications, fund equipment, and cover VAT bills without draining working capital. Financing aligned to JCT-style timelines and drawdowns can help you keep building with confidence.

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Note: Finance availability and terms vary by lender, profile and project. We do not provide financial advice.

What is a construction business loan?

It’s an umbrella term for business finance solutions tailored to the construction sector, including unsecured working capital facilities, asset and equipment finance for plant and vehicles, invoice finance designed for applications/certified invoices, materials/trade finance, VAT loans, bridging loans, and full development finance for ground‑up or heavy refurb projects.

Fast Business Loans does not lend or give financial advice. We’re a free introducer that connects construction companies and incorporated contractors to specialist UK brokers and lenders who understand your projects and contract structures.

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Finance options for construction (by need)

Working capital and cash flow loans

• Best for: payroll, subcontractor bills, materials, mobilisation, unexpected costs.
• Features: unsecured or secured; fixed terms; personal guarantee may be required; amounts from £10,000+ subject to status.
• Typical documents: 3–6 months bank statements, filed accounts, YTD management info, key contracts.

Invoice finance for construction (applications and certified)

• Best for: unlocking cash from applications for payment and certified invoices under JCT/NEC or similar contracts.
• Features: facilities may support applications; recourse/non‑recourse options; concentration limits and debtor quality matter.
• Typical documents: sales ledger/aged debtors, contract schedules, certification evidence, debtor details.

Learn more about invoice finance.

Asset and equipment finance (plant, tools, vehicles)

• Best for: diggers, MEWPs, cranes, tools, vans and HGVs; also refinance existing kit to release equity.
• Features: hire purchase, finance lease, refinance; VAT treatment varies by product; security against the asset.
• Typical documents: supplier quotes, asset specs/serials, bank statements, accounts.

Explore asset finance and vehicle finance.

Materials/trade finance

• Best for: bulk materials purchases and supplier payments before client stage payments.
• Features: revolving credit lines; repayments aligned to project milestones or debtor receipts.
• Typical documents: purchase orders, supplier details, project schedule, contracts.

VAT loans

• Best for: quarterly VAT bills without draining working capital.
• Features: short‑term, predictable repayments; fast decisions once documents are provided.

Bridging loans (property/land)

• Best for: short‑term purchase or refinance, auction buys, or releasing equity pre‑development.
• Features: interest can often be rolled up; exit strategy is critical (sale, refinance, development facility).
• Typical documents: valuation, security details, evidence of exit.

Read about bridging finance.

Development finance (ground‑up or heavy refurbishment)

• Best for: residential or commercial builds, conversions, and major refurbs.
• Features: day‑1 land loan plus staged drawdowns for build costs; strong experience and team help.
• Typical documents: planning consent, build programme, QS costings, professional team CVs, GDV appraisal, exit plan.

See development finance.

Refinance and consolidation

• Best for: simplifying repayments, releasing working capital, or lowering monthly outgoings.

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How our matching service works

1. Complete a quick enquiry (typically under 2 minutes).
2. We match you with sector‑relevant UK lenders/brokers who understand construction.
3. Expect a rapid response by phone or email to discuss options and documents.
4. Compare offers and decide — there’s no obligation to proceed.

Submitting an enquiry will not affect your credit score. If you choose to proceed, partners may conduct credit checks.

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Eligibility and what lenders look for

Criteria vary by provider and product, but common factors include:

• Time trading and turnover trend (start‑ups for some products may be considered)
• Director credit history (imperfect considered case‑by‑case)
• Sector experience, especially for development finance
• Security available (assets or property), where applicable
• Contract strength: JCT/NEC terms, stage payments, retention profile

Document checklist (have as much ready as you can):

• Last 3–6 months bank statements
• Last filed accounts and YTD management accounts
• Aged debtor/creditor lists; key contracts and applications
• CIS returns; VAT info
• Asset quotes/specs for equipment finance
• Development only: planning permission, cost plan/QS report, build schedule, GDV appraisal, exit route, team CVs

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Costs, rates and repayments

Costs vary by product, security, risk, and your profile. You may encounter:

• Interest: fixed or variable
• Arrangement and documentation fees
• Valuation and legal fees for property‑backed deals
• Drawdown/monitoring fees on development facilities
• Early settlement or termination charges (check terms)

Repayment structures:

• Amortising monthly repayments for term loans
• Interest‑only with bullet repayment (common for bridging)
• Staged drawdowns with interest on funds utilised (development)

Illustration only — not an offer: Borrow £100,000 over 24 months at a fixed annual rate of 12% with a 2% arrangement fee. Estimated monthly repayment c. £4,707. Total repayable c. £112,968 plus fees. Actual costs depend on your circumstances and lender assessment.

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Real scenarios we can support

• Specialist contractor requiring £50k–£150k to mobilise trades and materials ahead of first application for payment
• Main contractor unlocking £300k against certified applications to smooth cash flow across multiple sites
• Plant upgrade via hire purchase for £175k over 5 years to improve utilisation and reliability
• £2.5m residential development funded with day‑1 land loan plus staged build drawdowns (subject to status)
• £75k VAT facility to protect working capital at quarter‑end

For an industry‑focused overview, see our guide to construction business loans.

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Tips to improve approval chances

• Tidy recent bank statements and avoid unarranged overdrafts
• Have a brief project/cash flow summary ready (milestones, payment timings, retentions)
• Provide evidence of sector experience and key contracts
• Keep tax filings (VAT/CIS) up to date
• Offer appropriate security where possible and relevant
• Be realistic on timelines, costs and contingency; include QS oversight for development

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Risks and considerations

• Late or missed payments can affect your credit rating and may lead to asset repossession if secured
• Personal guarantees: understand your liability and potential impact
• Variable rates may rise, increasing repayments
• Development risk: cost overruns and delays; contingency and professional monitoring help
• Bridging risk: ensure a clear, credible exit strategy
• Always compare total cost of finance and terms before proceeding

We do not provide financial advice. Consider independent advice if unsure.

FAQs: Construction business loans

Can start-ups in construction get finance?
Some lenders may consider new companies for certain products (e.g., asset finance, specific working capital), subject to status, experience, and documents.

Will my enquiry affect my credit score?
No. Submitting an enquiry to Fast Business Loans won’t affect your credit score. If you proceed with a lender/broker, they may conduct credit checks.

What amounts and terms are available?
Our partners commonly arrange facilities from £10,000 to £5,000,000+ depending on product type, security, and profile. Terms vary by product.

Do you support invoice finance for applications and certified invoices?
Yes. Some lenders offer construction‑friendly invoice finance that supports applications for payment and certified invoices under JCT/NEC or similar frameworks.

Do I need security or a personal guarantee?
It depends. Unsecured loans may require a personal guarantee; asset/property‑backed facilities typically secure against the asset or property.

How quickly can I get funds?
Once documents are provided, some facilities can complete within days. Property‑backed and development deals usually take longer due to valuations and legal work.

Can I get finance with adverse credit or a CCJ?
Potentially, yes. Because we work with a broad panel, there may be options even if you’ve been declined elsewhere. Final decisions depend on full assessment.

Do you arrange development finance and bridging?
We introduce you to brokers/lenders that offer both, subject to planning status, valuation, and a viable exit strategy.

What documents will I need?
Common requests include bank statements, accounts, management info, aged debtor/creditor lists, contracts, CIS returns, and any asset quotes. Development deals require planning details, cost plans/QS, schedule, GDV and exit.

How much does your service cost me?
Our service is free for business owners. If you proceed with a lender/broker, they may pay us a commission. This does not affect the deal you receive.

Are your partners UK‑based?
Yes, we connect you with UK lenders and brokers experienced in funding construction businesses.

Can I repay early?
Often yes, depending on product and lender. Confirm any early repayment charges before proceeding.

Helpful background: JCT contracts and applications for payment are explained at the Joint Contracts Tribunal (JCT). CIS details are available via HMRC CIS guidance.

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