What are construction business loans?

Construction business loans are funding solutions tailored for the unique cash flow cycle of building projects. Rather than a single product, they include a toolkit of options — from unsecured/secured working capital to invoice finance against certified applications for payment (A2P), asset and vehicle finance for plant and fleets, and property‑backed solutions like development or bridging facilities.

The right choice depends on your contracts, stage payments, security, trading history, and goals. Share a few details about your project pipeline and requirements; Fast Business Loans will introduce you to suitable UK brokers and lenders so you can compare offers quickly and choose what works for your business. We’re an introducer, not a lender — our service is free to use and there’s no obligation.

Types of construction finance we can connect you with

Working capital loans (secured or unsecured)

• Use cases: Cover payroll and subcontractors, buy materials, manage gaps between stage payments.
• Typical profile: From £10,000 to £500,000+; terms 3–60 months; personal guarantees common on unsecured; higher limits with security.
• Pros: Flexible use, fast decisions, predictable repayments.
• Consider: Affordability checks; pricing varies by risk, term, and security.

Invoice finance for construction (including applications for payment)

• Use cases: Unlock cash tied up in certified applications or invoices under JCT/NEC frameworks.
• Typical profile: Revolving facility linked to your debtor book; funding aligned to certifications; optional credit control support.
• Pros: Scales with sales, reduces debtor days, supports payroll and materials.
• Consider: Fees, notice periods, and contract terms; debtor quality and certification cycles are key.

Asset and equipment finance (plant and machinery)

• Use cases: Finance excavators, telehandlers, access equipment, tools, and modular buildings.
• Typical profile: Hire purchase, finance lease, or refinance; terms 12–84 months; new or used assets.
• Pros: Preserves cash, matches repayments to asset life, potential tax efficiencies.
• Consider: Asset acts as security; understand early settlement terms.

Vehicle finance (vans, pickups, HGVs)

• Use cases: Fleet upgrades, adding vans for crews, low‑emission transitions.
• Typical profile: HP, lease, or contract hire.
• Pros: Predictable monthly costs, potential tax benefits.
• Consider: Mileages and condition clauses on leases.

Trade and materials finance

• Use cases: Buy materials upfront against purchase orders or contracts.
• Typical profile: Short‑term facilities; funds often paid directly to suppliers.
• Pros: Protects working capital; aligns purchases with project timelines.
• Consider: Supplier and contract documentation required.

Development and bridging finance

• Use cases: Site acquisitions, refurbishments, new builds, or bridging to sale/refinance.
• Typical profile: LTV/LTC driven; staged drawdowns on QS certification; clear exit strategy essential.
• Pros: Enables projects without full upfront cash.
• Consider: Interest and fees typically higher; legal, valuation, and due diligence apply.

VAT and tax funding

• Use cases: Spread VAT or corporation tax liabilities.
• Typical profile: Short‑term structured repayments.
• Pros: Avoids lump‑sum pressure on cash flow.
• Consider: Ensure affordability and timing align with cash cycle.

Business credit lines

• Use cases: Flexible drawdowns for short‑term needs (e.g., unexpected variations, materials spikes).
• Typical profile: Revolving facilities; limits set on turnover/performance.
• Pros: Only pay for what you use.
• Consider: Variable pricing; periodic reviews.

All figures are indicative. Eligibility, rates, and terms depend on your circumstances. Any quote you receive will include full cost disclosures before you decide.

Looking for more detail on sector‑specific solutions? Explore our guide to construction business loans for additional use cases and options.

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Who we help in construction

We connect limited companies across the UK construction ecosystem with finance partners who understand applications for payment, retentions, and CIS. Typical businesses include:

• Main contractors and subcontractors
• Groundworks and civil engineering firms
• Electrical, plumbing, HVAC, and M&E contractors
• Roofing, cladding, and scaffolding businesses
• Joinery, carpentry, and interior fit‑out specialists
• Plant hire, builders’ merchants, and material suppliers
• Housebuilders, developers, and refurbishment specialists
• Growing limited companies with contracts lined up

Eligibility: what lenders and brokers look for

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

• Time trading and turnover trend
• Contract pipeline, POs, certification schedules, and debtor quality
• Project profitability and margins
• Credit history of the business and directors
• Assets available (for secured solutions)
• CIS status (gross/net), retentions, and stage payment structures
• Insurances (e.g., public liability, contractor’s all risks)
• Project experience and management accounts

Newer limited companies can sometimes be supported with strong contracts, experienced directors, or asset‑backed facilities. If you’ve been declined before, a specialist broker may still find options through a different lender.

What to prepare for a faster decision

• Last 3–12 months’ business bank statements
• Latest filed accounts and current management accounts
• Aged debtors and creditors lists
• Key contracts, POs, and applications for payment schedules
• CIS statements and VAT returns
• Asset list and any existing finance schedules
• Photo ID and proof of address (directors/owners)
• Project overviews and drawdown forecasts (for development/bridging)
• Insurance certificates

How Fast Business Loans works

1. Complete our quick enquiry form: Tell us about your business and funding needs. It takes less than 2 minutes.
2. We match you with trusted UK brokers/lenders: Partners are selected for construction experience and relevance to your requirements.
3. Rapid response: Expect a call or email to discuss options and request any documents.
4. Compare, choose, and fund: Review clear, no‑obligation offers and decide on your timeline.

Important: We’re not a lender and we don’t provide financial advice. Your enquiry won’t affect your credit score; partners may perform credit checks if you decide to proceed.

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Costs, repayments, and what to compare

Finance costs depend on the amount, term, security, credit profile, and project risk. You’ll receive a personalised quote with a breakdown of:

• Interest or fee structure (e.g., APR, flat fee, discount rate)
• Total repayable and monthly or staged repayments
• Arrangement, documentation, valuation, and exit fees (if applicable)
• Early settlement terms and any minimum terms
• Security and guarantee requirements
• Conditions precedent (insurances, QS reports, certificates)

Always check affordability and the impact on your cash flow under realistic scenarios. Missed or late payments can result in additional charges and may affect your credit rating. For secured lending, your assets or property may be at risk if you don’t keep up repayments.

Why UK construction firms choose Fast Business Loans

• Built for construction: Partners who understand A2P, retentions, CIS, and site realities.
• Save time: One simple form — relevant options quickly.
• Better fit: We increase approval chances by matching your needs to the right providers first time.
• No pressure: Free to use and no obligation to proceed.
• Transparent: Clear next steps, secure handling of your data, and partners who treat customers fairly.

Real‑world examples (illustrative only)

• Subcontractor cash flow: An electrical contractor needed £75,000 to bridge a 45‑day gap between certified applications and payment. A construction‑aware invoice finance facility advanced funds against certifications, stabilising payroll and materials purchasing.
• Asset expansion: A groundworks firm financed a used excavator via hire purchase over 48 months, preserving cash for new site starts and aligning repayments to the asset’s working life.
• Materials purchase: A fit‑out specialist used a short‑term materials finance line to bulk‑buy timber following a contract award, protecting margins and delivery timelines.

Examples are for illustration; your options and costs will vary.

Construction finance FAQs

How quickly can construction finance be arranged?

Some decisions can be made within hours with funding often in days, depending on documentation and product. Secured facilities may take longer due to valuations, legal work, or QS reports.

Can newer contractors get funding?

Potentially, yes — especially with strong contracts, experienced directors, or asset‑backed solutions. A specialist broker can assess a range of lenders.

Will my credit score be affected by submitting an enquiry?

No. Submitting our enquiry form won’t affect your credit score. If you proceed with a lender, they may perform credit and affordability checks.

Do I need security or a personal guarantee?

It depends on the product, amount, and risk. Unsecured loans may require a personal guarantee. Asset, vehicle, development, or bridging finance are typically secured.

Can I finance applications for payment rather than invoices?

Many construction‑focused invoice finance providers can fund against certified applications or stage payments under JCT/NEC terms — subject to contracts and debtor quality.

What’s the typical funding size?

Our partners commonly assist from £10,000 up to £5 million+, depending on product, security, and circumstances.

Can I settle early?

Many facilities allow early settlement. Check how early repayments are calculated and whether fees apply.

Are there options if I’ve been declined before?

Yes. Lenders differ in criteria and appetite. A different broker or lender may still be able to help.

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Important information and compliance

• Fast Business Loans is not a lender and does not provide financial advice. We act as an introducer, connecting UK businesses with selected finance brokers and lenders.
• Your enquiry with us does not affect your credit score. If you choose to proceed, partners may conduct credit and affordability checks.
• Eligibility and funding are subject to status and lender criteria. Rates, fees, and terms vary and will be fully disclosed in any quote before you decide.
• Missing or late repayments can result in additional charges and may affect your credit rating. For secured lending, your assets or property may be at risk if you do not keep up repayments.
• We aim for promotions that are clear, fair, and not misleading. Please ensure any decision is made on full information and professional advice where appropriate.

Helpful resources: Gov.uk CIS overview and JCT standard forms.

Ready to explore your construction finance options?

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It’s free and there’s no obligation to proceed.