What Are Construction Business Loans?

Construction business loans are working capital and asset-backed finance options tailored to construction firms. They help smooth cash flow across projects—funding upfront materials, plant hire or purchases, payroll and subcontractors, and bridging the gap until stage payments land or retentions are released. Options include unsecured and secured business loans, invoice finance for applications for payment (A2P), asset and equipment finance, revolving credit lines, and short-term bridging.

How is this different from development finance? Development finance is usually secured against property or land for ground-up or heavy refurbishment projects. Many construction firms simply need business finance to run jobs, mobilise quickly, or purchase plant—without the structure of a development facility. We’ll help you explore which route could suit your project and trading profile.

Common Construction Cash Flow Challenges We Help With

• Paying for materials, plant hire, and labour before receiving stage payments.
• Long payment terms, retentions, and variations delaying cash into the business.
• CIS deductions and VAT timing creating short-term gaps.
• Seasonal demand and gaps between projects.
• Rapid mobilisation when a new contract is awarded.

The right finance smooths cash flow so projects stay on schedule and teams stay on site.

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Types of Construction Finance We Can Introduce

Unsecured business loans

Useful for quick working capital—covering materials and labour ahead of stage payments. Typical enquiry ranges start from £10k and can extend to the mid-six figures, across terms of 3–60 months. Speed is a key benefit, and personal guarantees are commonly requested. Cost and terms vary by credit profile, time trading, and contract strength; availability is always subject to lender assessment.

Secured business loans

For larger needs or potentially lower cost of funds, secured loans use property or business assets as security. Suitable for growing contractors and construction firms investing in multi-site work or heavier spend. Expect legal due diligence and valuation steps; set-up times can be longer than unsecured options.

Invoice finance for construction

Unlock cash tied up in certified applications for payment, staged invoices, or A2P under JCT and similar contracts. Specialist lenders understand stage payments, contractual notices, and retentions. Finance is typically advanced against approved certificates or invoices, reducing debtor days and helping firms manage CIS and VAT cycles more comfortably.

Asset finance and equipment finance

Acquire diggers, excavators, telehandlers, MEWPs, vans, and other plant and machinery. Options include hire purchase, finance lease, and refinancing existing plant to release working capital. Useful when balancing cash flow with essential upgrades or expanding your fleet for new contracts.

Bridging finance

Short-term funding to bridge timing gaps, urgent purchases, or rapid site mobilisation. Facilities are typically secured and run for months rather than years. Interest and fees apply, and early repayment considerations should be reviewed before proceeding.

Business credit lines and revolving facilities

Draw funds when required for payroll, materials, or unexpected costs; pay interest on the drawn balance only. Suitable for firms with ongoing, variable funding needs across multiple projects.

Refinance and consolidation

Restructure existing borrowing to simplify monthly outgoings and improve day-to-day cash flow. Lender appetite, affordability, and security (where applicable) will determine availability and terms.

Who We Help in the Construction Supply Chain

• Main contractors and project management firms
• Subcontracting businesses (e.g. groundworks, M&E, roofing, joinery, civil engineering)
• General builders and specialist trades companies
• Plant hire and building services firms
• Developers and construction companies (limited companies and LLPs)

We support businesses across England, Scotland, Wales, and Northern Ireland.

Explore more on our industry overview for construction business loans.

Eligibility & What Lenders Look For

Criteria always vary by lender and product type, but you can expect some or all of the following to be considered:

• Business structure: typically UK limited companies and LLPs; time trading and turnover bands
• Recent business bank statements (3–12 months) and basic financials (management accounts, P&L)
• Aged debtors/creditors, visibility of contracts and pipeline, CIS statements, and VAT status
• Credit history for company and directors; past issues don’t always exclude—specialist lenders may still help
• Security availability for secured options; personal guarantees may be requested

Soft search: Submitting an enquiry through us won’t affect your credit score. If you proceed, lenders or brokers may run credit checks in line with their policies.

Quick checklist before you apply:

• 3–6 months of bank statements
• Latest management accounts or basic P&L
• Key contracts, recent invoices, or applications for payment
• Director ID and business details

Rates, Costs, and Terms — What to Expect

Costs depend on many factors: secured vs unsecured, amount and term, trading history, sector exposure, asset quality, credit profile, and the strength of your contracts. As general guidance only:

• Unsecured loans: typically higher cost than secured; shorter terms (speed-focused, PG often required).
• Secured/asset-backed: potentially lower cost; arrangement and legal fees may apply.
• Invoice finance: a service fee plus a discount rate on funds used—geared to utilisation and risk.

Important: These points are informational only. Actual rates and terms are set by the lender after assessment. No guarantees of approval or specific rates are implied.

Compare Options in Minutes

How Our Fast Matching Works

1. Complete a brief, two-minute enquiry.
2. We match you with construction-aware brokers and lenders relevant to your needs.
3. Expect a quick response by email/phone to discuss options and documents.
4. You compare, decide, and fund directly with your chosen provider—no obligation to proceed.

We are an introducer, not a lender. Our service is free to use for business owners and directors.

Use Cases and Scenarios

• Mobilising for a new contract: Working capital to cover materials and labour before the first stage payment.
• Managing retentions and long terms: Invoice finance to plug cash flow gaps while certificates are approved.
• Upgrading plant and vehicles: Asset finance for excavators, telehandlers, vans, and specialist kit.
• Multi-site or seasonal work: A revolving facility to smooth peaks and troughs.
• Growth and capacity: Finance to take on bigger contracts with confidence in working capital.
• Tax and VAT timing: Appropriate working capital support to manage HMRC deadlines.

Why Choose Fast Business Loans

• Construction know‑how: We connect you with partners who understand JCT contracts, CIS, retention, and stage payments.
• Fast and simple: Short enquiry form; rapid responses.
• Transparent and secure: Your details are shared only with relevant partners for your case.
• No pressure: Compare options and proceed only if they suit your business.
• Free to use: We’re paid by our partners if you go ahead with a facility they arrange.

Documentation & Timeframes

• Unsecured working capital: sometimes 24–48 hours after approval, depending on the lender and documents.
• Invoice finance setup: a few days to onboard; ongoing drawdowns can be rapid once live.
• Asset finance: typically days to a couple of weeks depending on the asset and supplier.
• Bridging/secured: valuation, legal work, and due diligence mean longer timelines.

Typical documents: bank statements, ID/KYC, management accounts, contracts or invoices/applications, asset details where relevant.

FAQs

Can new or recently formed construction companies apply?

Potentially, yes—particularly where there is contract visibility, strong directors’ experience, and appropriate guarantees or security. Availability and terms vary by lender and are always subject to assessment.

Will my enquiry affect my credit score?

No. Submitting an enquiry via Fast Business Loans won’t affect your score. If you proceed, partners may conduct credit checks in line with their policies.

Can I get finance with adverse credit or historic CCJs?

Some specialist lenders consider imperfect credit if the business case stacks up. Pricing, terms, and any security or guarantees will depend on risk and affordability.

Do you understand JCT contracts, stage payments, and retentions?

We introduce you to partners who regularly fund against certified applications for payment, staged invoices, and A2P under JCT and similar frameworks, including managing retentions where applicable.

Do you help with plant, machinery, and vehicles?

Yes. Through our partners we can introduce asset finance for new and used equipment, plus refinance of owned plant to release cash—subject to lender criteria.

What amounts and terms are available?

Introductions typically range from £10,000 up to £5,000,000+ depending on product, security, and trading profile. Terms range from short-term bridging to multi-year asset or secured facilities.

Are personal guarantees required?

Personal guarantees are common for unsecured and some secured business loans. Requirements vary by lender, product type, and risk assessment.

Can finance help with VAT or HMRC timing?

Working capital facilities can help manage timing for VAT and CIS obligations. Always ensure affordability and discuss specific needs with the lender or broker.

How fast can funds be available?

Simple unsecured loans may complete in as little as 24–48 hours post-approval. Asset, invoice, and secured facilities can take longer due to onboarding, valuations, and legal processes.

Which business types are eligible?

We primarily introduce funding options for UK limited companies and LLPs operating in construction and related trades. Minimum funding size is usually £10,000.

Ready to Move Your Project Forward?

Get a fast, free eligibility check. There’s no obligation—ever. Complete a quick form and we’ll connect you with construction-aware lenders and brokers who can provide quotes and next steps.

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Transparency and responsible borrowing: Fast Business Loans is not a lender and does not provide financial advice. We introduce UK businesses to brokers and lenders. Finance is subject to status, affordability checks, and lender criteria. Security and personal guarantees may be required. Late or missed payments can affect your credit rating and may result in additional charges. Ensure you can afford any repayments.