Construction Business Loans and Finance (UK)

Stage payments, materials up front, retentions, CIS and VAT, payroll every Friday, plant hire due now — construction has unique cash flow pressures. Fast Business Loans connects UK construction companies with trusted lenders and brokers who understand your sector and can offer tailored business finance. It’s quick, free to enquire, and there’s no obligation to proceed.

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We’re an introducer, not a lender, and we don’t provide financial advice. Funding is subject to status, affordability, and lender criteria. Your enquiry here won’t affect your credit score; partners may run credit checks if you decide to proceed.

In short: what this page covers

Quick answer: Construction business loans and finance help UK contractors and building firms fund materials, labour, plant, and project cash flow — including stage payments, applications for payment, and retentions. We match limited companies and LLPs to suitable options such as unsecured working capital, construction-aware invoice finance, asset/plant finance, trade and purchase order finance, and property-backed bridging and development facilities. Typical amounts start from around £10,000 and can reach £5 million+ depending on product, security and circumstances. Submit a short form and we’ll connect you with relevant lenders/brokers fast — with no obligation to proceed.

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Table of contents

• What is a construction business loan?
• Who we help
• Types of construction funding
• How our process works
• Eligibility & documents
• Rates, costs & terms
• How much can I borrow?
• Pros, cons & risks
• Short, real-world examples
• Why choose Fast Business Loans
• FAQs
• Get started

What Is a Construction Business Loan?

Construction business loans are finance solutions designed specifically for the way construction operates — with contract-led revenue, certified valuations, applications for payment, stage billing, and retentions delaying cash receipts. Unlike general SME loans, construction finance considers site progress, debtor quality, and contract structures.

Funding can be unsecured or secured, short- or long-term. Solutions include:

• Unsecured working capital to smooth cash flow between stage payments
• Construction invoice finance against certified applications or invoices
• Asset, plant and equipment finance for excavators, telehandlers, vans and more
• Trade and purchase order finance for materials
• VAT and tax funding
• Revolving credit/overdraft alternatives
• Property-backed bridging and development finance

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Who We Help in Construction

We connect UK limited companies and LLPs operating in:

• Main contracting and subcontracting (all trades)
• Building firms, housebuilders, and developers
• Civil engineering, groundworks, and infrastructure
• M&E, HVAC, electrical, plumbing
• Scaffolding, roofing, joinery, fit-out and refurb
• Modular/offsite construction, modern methods
• Plant hire and maintenance

Common use cases:

• Mobilising a new project and buying materials up-front
• Meeting payroll for staff and subbies under CIS
• Bridging cash flow between stage payments and managing retentions
• Funding plant, machinery, vehicles and tools
• VAT or tax bills without draining working capital
• Scaling to bid and deliver larger contracts

Explore our sector overview on construction business loans for more detail.

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Types of Construction Finance We Can Connect You With

Unsecured/Working Capital Loans

• Short- to medium-term funding for materials, labour, overheads, and general cash flow
• Often faster to arrange than property-secured options
• May require a personal guarantee (PG) and affordability evidence

Invoice Finance for Construction (including Applications for Payment)

• Advance a percentage of certified applications/valuations or invoices
• Useful for 30–60+ day terms and to help offset retentions
• Assessment considers debtor quality, contract terms and concentration risk

Asset and Equipment Finance (Plant, Machinery, Vehicles)

• Hire purchase, finance lease, or refinance of owned assets
• Fund excavators, telehandlers, access equipment, scaffolding, vans and HGVs
• Match term to asset life to preserve working capital

Bridging and Development Finance

• For site acquisition, heavy refurb, conversions, and ground-up development
• Secured against property/land; loan-to-value (LTV), experience and exit strategy are key
• Specialist lenders for resi and commercial schemes

Trade and Purchase Order Finance

• Funds supplier/materials before client payment lands
• Often integrates with invoice finance facilities

VAT and Tax Funding

• Short-term facilities to cover HMRC liabilities without squeezing project cash flow

Revolving Credit Facilities and Overdraft Alternatives

• Flexible drawdown and repayment to smooth month-to-month volatility
• Useful for ongoing working capital for builders and contractors

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How Fast Business Loans Works (Simple, Transparent, No Pressure)

1. Tell us what you need using our quick form (under 2 minutes).
2. We match you with selected UK brokers/lenders who understand construction finance.
3. Expect a rapid response (often the same day) to discuss options.
4. Compare offers and proceed only if it suits you. There’s no obligation to take a deal.

We’re an introducer, not a lender, and we don’t give financial advice.

Eligibility and Documents: What Lenders Typically Look For

• Business profile: time trading, turnover, directors’/management experience, pipeline and contracts, credit profile
• Security: unsecured vs secured; PGs may be requested; assets/property for secured options
• Financials: latest filed or management accounts, 3–6 months bank statements, aged debtor/creditor lists
• Construction specifics: CIS statements, contract details, stage payment schedules, retentions, main contractor pay history
• KYC: ID and address for directors/beneficial owners

Have these ready to accelerate underwriting. Get Quote Now | Free Eligibility Check

Rates, Costs and Terms (Clear, Fair, Not Misleading)

Pricing varies by product type, risk profile, term, security, and lender. We don’t quote blanket rates because construction finance is highly scenario-based. Typical cost components include:

• Loans: interest (fixed/variable), arrangement fees, early repayment options where available
• Invoice finance: discount margin, service fees, and any concentration or additional fees
• Asset finance: flat rate/APR equivalents, documentation/admin fees, option-to-purchase (HP)
• Bridging/development: monthly interest, arrangement/exit fees, valuation and legal costs

All examples are illustrative only. Your terms depend on your circumstances and lender assessment, subject to status and affordability.

How Much Can I Borrow?

Guidance only: from around £10,000 to £5 million+ depending on product, security, and business profile. Factors that influence limits include:

• Turnover and contract size
• Debtor quality and payment performance
• Asset values and LTV for secured facilities
• Director/management experience and exit strategy

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Pros, Cons and Key Risks to Consider

Potential benefits

• Mobilise projects sooner and stabilise cash flow between stage payments
• Acquire plant and equipment without depleting cash reserves
• Scale up to bid and deliver larger contracts

Considerations/risks

• Finance costs impact margins — ensure the project still stacks up
• Security or PGs may be required; risk of asset/property repossession if you default
• Variable income and late payers require disciplined cash flow management

Ensure finance is affordable and suitable for your business. Consider independent advice if needed. We don’t offer financial advice.

Short, Real-World Examples (Anonymised)

• M&E subcontractor: 45-day terms with a 5% retention slowed growth. A construction-aware invoice finance line advanced against certified applications, smoothing payroll and materials spend, enabling them to take an additional framework contract.
• Groundworks firm: Used asset finance to acquire a £120k excavator, matching monthly payments to secured contract income rather than tying up cash.
• Small developer: Secured bridging on a site purchase; after planning approval, exited onto a development facility to build out and refinance upon sale.

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Why Choose Fast Business Loans for Construction Finance

• Sector focus: We connect you with partners who understand applications for payment, stage billing, CIS and retentions.
• Speed: 2-minute enquiry, fast responses.
• Choice: Access a panel of trusted UK brokers and lenders.
• Free and no pressure: It’s free to enquire and there’s no obligation to proceed.
• Secure handling: Your details are shared only with relevant partners for your enquiry.

FAQs: Construction Business Loans

Do you lend directly?
No. We’re an introducer. We connect you with trusted UK lenders and brokers who offer finance directly.

Will my enquiry affect my credit score?
Your enquiry with us won’t affect your credit score. Partners may run credit checks if you decide to proceed.

Can start-up construction companies apply?
Some partners consider newly formed limited companies and LLPs, especially where there’s proven experience and contract visibility.

Can you help with applications for payment and retentions?
Yes. Selected invoice finance partners support construction-specific billing methods, including certified valuations and retentions.

What security is required?
It depends on the product and your profile. Options range from unsecured loans (often with PGs) to asset- or property-secured facilities.

How quickly can funding be arranged?
Unsecured working capital can be quick. Asset or property-backed facilities take longer due to valuations and legal steps.

Can you help if we’ve had credit issues or past CCJs?
Many lenders assess on a case-by-case basis. Adverse history doesn’t always mean a “no”.

What amounts are available?
From around £10,000 up to £5 million+ depending on product, security and business circumstances.

Is there any obligation to proceed after being matched?
No. Our service is free and there’s no obligation to go ahead.

Ready to explore construction finance options?

Get Started | Free Eligibility Check | Get Quote Now

No cost. No obligation. Quick responses from relevant construction finance partners.

Transparency note: Fast Business Loans is an introducer, not a lender, and does not provide financial advice. We connect UK businesses with brokers and lenders. Eligibility and funding are subject to status, affordability, and lender criteria. Your details are only shared with relevant partners for your enquiry. If you proceed, lenders/brokers will provide full terms, costs and disclosures.

1) How quickly can we get a construction business loan in the UK?
You’ll typically get a same-day response and, depending on product, unsecured working capital can fund in days while asset or property-backed construction finance takes longer due to valuations and legals.

2) How much can a construction company borrow?
Guidance: from around £10,000 to £5 million+ depending on product, security, turnover, and your contract/debtor profile.

3) Do you lend directly or act as a broker?
Fast Business Loans is an introducer that connects UK contractors with trusted lenders and brokers; it’s free to enquire and there’s no obligation to proceed.

4) Will checking eligibility affect my credit score?
No—your enquiry with us won’t affect your credit score, though partners may run checks if you decide to proceed.

5) What security or personal guarantees are required for construction finance?
Requirements vary by product: unsecured loans often need a personal guarantee, while asset/plant, invoice finance or bridging/development facilities are secured against equipment, receivables or property.

6) Can start-up construction companies or new limited companies apply?
Yes—some partners consider newly formed limited companies and LLPs, especially where directors have relevant experience and there’s contract visibility or pipeline.

7) Can you help with applications for payment and retentions?
Yes—construction-aware invoice finance can advance a percentage of certified applications/valuations or invoices and help manage retentions and longer terms.

8) What documents do lenders typically ask for?
Expect latest accounts or managements, 3–6 months’ bank statements, aged debtor/creditor lists, CIS statements, contract details and stage payment schedules, plus director/owner ID and address.

9) Can you help if we have bad credit or past CCJs?
Many lenders assess construction businesses case by case, so adverse credit doesn’t automatically mean a decline.

10) What are typical rates, fees and terms for construction finance?
Pricing is scenario-based, but costs may include interest or discount margins, arrangement/service fees and valuation/legal costs, with terms set by the lender after assessing risk, security and contract quality.