Construction Business Loans (UK): Get the Right Finance Fast

Quick answer: UK construction companies can access finance for materials, labour, plant, vehicles, applications for payment, and project mobilisation through a range of solutions including working capital loans, invoice finance, asset and equipment finance, contract/materials funding, and development or bridging facilities. Fast Business Loans is not a lender and does not provide advice; we introduce limited companies and LLPs to trusted UK brokers and lenders who can help. Enquiries take under 2 minutes and won’t affect your credit score. Compare options with no obligation.

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Last updated: 28 October 2025 • Reviewed by our construction finance content team

How Our Service Works for Construction Businesses

Cash flow on site is different: materials up front, staged payments, retentions, CIS, and long payment cycles. Our job is to get you talking to the right finance professionals quickly and fairly — without the runaround.

• Tell us what you need: Complete a short enquiry (under 2 minutes).
• We match you: We introduce you to UK brokers/lenders suited to your requirements and sector.
• Quick response: Expect contact, often within hours during business time, to discuss options.
• Compare and decide: Review terms and costs. There’s no obligation to proceed.

Submitting an enquiry with Fast Business Loans does not trigger a hard credit check. If you proceed, partners may run credit and affordability checks as part of underwriting.

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What Are Construction Business Loans?

Construction business loans are finance solutions designed for limited companies and LLPs operating in UK construction and related trades — from main contractors and subcontractors to developers and building services firms. These solutions can help with:

• Upfront materials and plant
• Payroll and CIS labour
• Bridging gaps from stage payments and retentions
• Equipment and vehicle purchases
• Project mobilisation and site setup

There isn’t a one-size-fits-all product. Depending on your contract profile, assets, and cash flow, the “right” facility may be a working capital loan, invoice finance line, asset finance, vehicle finance, contract/materials funding, or development/bridging finance. Terms, rates and eligibility vary by product and are subject to status and underwriting.

Explore related guidance on construction business loans for your sector.

Types of Construction Finance We Can Help You Explore

Working Capital / Unsecured Business Loans

Use cases: short-term cash flow, mobilisation costs, minor kit purchases, marketing, or contingency. Typically fixed term with fixed repayments. Although “unsecured,” many lenders may request a personal guarantee. Repayments impact cash flow, so align term and affordability with contract timing. Subject to status.

Invoice Finance for Construction (Including Applications to CIS/Contracts)

How it works: draw advances against approved applications for payment or invoices. Useful when clients pay on 30–90+ day terms or where retentions extend cash conversion. Facilities can scale with your turnover, improving liquidity as you grow. Fees vary by provider and structure (service fee + discount margin on funds in use). Expect reconciliation requirements and sector-specific onboarding.

Asset Finance and Equipment Finance (Hire Purchase, Lease)

Fund diggers, plant, MEWPs, scaffolding, tools, and technology. Key benefits include preserving working capital and matching repayments to the asset’s useful life. The asset often acts as security. End-of-term options differ by product, e.g., ownership with hire purchase vs. return/renewal with certain leases.

Vehicle and Fleet Finance

Finance for vans, pickups, and HGVs, with seasonal payment structures available in some cases. Consider total cost of ownership: mileage and duty cycles, maintenance responsibilities, and insurance. Vehicles may serve as security, which can improve pricing when compared to unsecured borrowing.

Contract/Trade Finance (Materials and Supplier Funding)

Specialist facilities that fund materials and supplier invoices before the client stage payment lands. Lenders review the contract counterparty strength, purchase orders, delivery schedules, and performance risk. Useful for projects with significant upfront procurement.

Bridging Finance & Commercial Development Finance

Used for site acquisition, refurbishment, and ground-up development. Expect valuations, QS/monitoring, staged drawdowns aligned to progress, and a defined exit strategy (e.g., sale or refinance). These are specialist facilities where strong documentation and experienced counterparties are essential.

Refinance & Consolidation

Restructure existing obligations to reduce monthly outgoings or simplify multiple facilities. Understand that extending terms may increase total cost of finance. If unsure, consider seeking independent advice. Subject to settlement terms and lender consent.

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What Can Construction Finance Cover?

• Materials, plant hire and equipment
• Wages, CIS subcontractors, and payroll
• VAT/HMRC obligations where permitted by the product
• Site setup, welfare, fencing, and mobilisation
• Fuel, logistics, and insurance costs
• Bridging retentions and stage-payment gaps

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Eligibility: Who Can Apply and What Lenders Look For

Typical criteria vary by lender and product, but construction firms with the following are more likely to find a fit:

• UK-based limited company or LLP
• £10,000+ funding requirement
• Trading history preferred; some products may consider early-stage businesses with evidence of contracts and experience
• Turnover and profit trends, pipeline visibility
• Contracts, applications for payment, and aged receivables (for invoice finance)
• Asset and vehicle details (for asset/vehicle finance)
• Security availability and any personal guarantees
• Business and director credit profiles

Documents often requested:

• Last 3–6 months of business bank statements
• Latest annual accounts and/or management accounts
• Copies of key contracts/POs and application for payment schedules
• Director ID and proof of address
• VAT returns and insurance certificates (where relevant)

We match you with partners who understand CIS, retentions, and stage payments — which can improve your chances of finding the right facility.

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Costs, Terms and Repayments: What to Expect

Pricing depends on product type, facility size, risk, security, and term. You’ll always receive full details from the lender/broker before you decide. Common cost components include:

• Interest or discount margin (on funds in use for revolving facilities)
• Arrangement/facility fees and documentation fees
• Valuation, legal, and QS/monitoring fees (for property-backed or development)
• Early settlement or termination terms

Typical structures:

• Invoice finance: a service fee plus a discount margin applied to the amount drawn.
• Asset/vehicle finance: fixed monthly repayments; an initial deposit may apply.
• Working capital loans: fixed term with fixed repayments; interest and fees vary.
• Development finance: staged drawdowns; interest usually charged on drawn funds only.

There is no guarantee of approval; all finance is subject to status, affordability and underwriting. Compare offers carefully and ask questions before proceeding.

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Timeline: How Fast Can Construction Businesses Get Funds?

Indicative only (not promises):

• Working capital loans: sometimes within a few days once documents are complete.
• Asset/vehicle finance: often a few days to two weeks depending on supplier settlement and paperwork.
• Invoice finance: onboarding typically 1–3 weeks; faster with complete documentation and responsive references.
• Bridging/development: longer due diligence (valuations, legal, QS/monitoring), then staged drawdown.

Speed improves with full, accurate documentation, clear contracts, and quick communication.

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How Fast Business Loans Helps Construction Firms

• Sector-aware matching: we connect you to professionals who understand CIS, retentions, and stage payments.
• Compare quickly: receive contact from relevant brokers/lenders and review offers side by side.
• Free to use: no obligation to proceed, ever.
• Clear role: we’re not a lender and do not provide financial advice; we introduce you to professionals who will discuss your options.
• Privacy: your details are handled securely and only shared with relevant partners for your enquiry.

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Practical Tips to Improve Approval Odds

• Keep management accounts and bank statements up to date; reconcile weekly if possible.
• Prepare contract documentation: POs, applications for payment, schedules, and any variations.
• Show profitability or a clear margin path on each contract, with supporting cost plans.
• Manage company and director credit profiles; address CCJs or arrears with explanations and evidence.
• Be ready to discuss retentions, payment terms (30–60–90+ days), and debtor concentrations.
• Consider security and guarantees ahead of time and understand implications.

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Common Pitfalls to Avoid

• Optimistic forecasting: overestimating inflows or underestimating costs and delays.
• Skipping the small print: not reviewing fees, covenants, and early settlement terms.
• Mixing HMRC/VAT funds unintentionally (where applicable) and creating cash shocks.
• Overleveraging plant or property without a clear exit plan.
• Accepting the first offer: always compare total costs and flexibility.

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FAQs: Construction Business Loans (UK)

1) Are you a lender?
No. Fast Business Loans is an introducer. We connect UK businesses with trusted finance brokers and lenders. We do not provide financial advice.

2) Will an enquiry affect my credit score?
No. Submitting an enquiry on our site won’t affect your credit score. If you proceed with a lender/broker, they may conduct credit and affordability checks.

3) Can start-up construction firms apply?
Potentially. Some products consider newer companies if you can evidence contracts, experience, and a viable plan. Eligibility always depends on status and product fit.

4) How are retentions handled?
Some solutions (especially invoice finance and contract funding) can be structured around retentions and stage payments. Discuss specifics with the lender/broker we introduce.

5) What’s the minimum and maximum I can borrow?
Our panel typically supports from £10,000 to £5,000,000+ subject to status, security, and product type.

6) How quickly can I access funds?
It varies. Working capital and asset/vehicle finance can complete in days; development/bridging and invoice finance typically require more due diligence.

7) What documents will I need?
Usually 3–6 months of bank statements, accounts/managements, ID/address for directors, contracts/POs, application schedules, and insurance/VAT where relevant.

8) Do you charge a fee?
Our service is free for business owners to use. Any lender/broker fees will be disclosed before you decide. There’s no obligation to proceed.

9) Are your partners regulated?
We introduce UK businesses to professional brokers and lenders who will discuss your options. Regulatory status varies by product and provider; partners will explain their terms and processes.

10) Can I apply if I’ve been declined elsewhere?
Yes. Different lenders have different criteria and sector appetites. A fresh look may help, especially with sector-aware partners.

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Important Information and Disclosures

Fast Business Loans is an introducer, not a lender, and does not provide financial advice. We connect UK businesses with trusted finance brokers and lenders. Submitting an enquiry will not affect your credit score. If you proceed with a partner, they may carry out credit and affordability checks.

All finance is subject to status, affordability, and underwriting. Rates, fees and terms vary by product and provider. Missing repayments may affect your business credit rating and could lead to enforcement action. For secured borrowing, your property or other assets may be at risk if you do not keep up repayments. You are under no obligation to accept any offer.

Get Started—Free Eligibility Check

1) What types of construction business finance can I get in the UK?
– Options include working capital loans, invoice finance (including against applications for payment), asset and vehicle finance, contract/materials funding, and bridging or development finance, subject to status.

2) How quickly can I get funding for my construction company?
– Working capital and asset/vehicle facilities can complete in days, while invoice finance typically takes 1–3 weeks and bridging/development usually takes longer due to valuations, legal work and QS checks.

3) Will submitting an enquiry affect my credit score?
– No—an enquiry with Fast Business Loans won’t trigger a hard search, though a broker or lender may run checks if you choose to proceed.

4) What can construction finance be used for?
– Funding can cover materials, plant and equipment, vehicles, wages and CIS subcontractors, site setup and mobilisation, fuel and insurance, VAT where permitted, and bridging stage-payment gaps and retentions.

5) Who is eligible to apply (including start-ups)?
– UK-based limited companies or LLPs seeking £10,000+ can apply, with start-ups considered case by case where contracts, experience and supporting documents are available.

6) What documents do I need to apply for construction finance?
– Lenders typically ask for 3–6 months of business bank statements, accounts or managements, director ID/address, contracts/POs and application schedules, plus VAT returns and insurance where relevant.

7) How does invoice finance for construction (including applications for payment and CIS) work?
– You draw a percentage of approved invoices or applications upfront and repay when your client pays, improving cash flow on 30–90+ day terms and scaling with turnover.

8) Can funding help with retentions and stage-payment gaps?
– Yes—invoice finance and specialist contract/materials funding can be structured around retentions and staged payments to smooth cash flow.

9) What loan amounts, interest rates and fees are typical?
– Partners typically consider £10,000 to £5,000,000+ with pricing that varies by product, risk, security and term and may include interest or discount margin, arrangement fees and, for property-backed facilities, valuation and legal fees.

10) Are you a lender and do I have to proceed?
– Fast Business Loans is an introducer (not a lender) that connects you with trusted UK brokers and lenders, and there’s no fee or obligation to proceed after you compare your options.