Construction Business Loans: Fast, Flexible Funding for UK Builders and Contractors

Materials to buy upfront. Staff and subcontractors to pay. Long payment terms and retentions. If you run a UK construction company, you know cash flow can be the toughest part of the job. Fast Business Loans connects limited companies and LLPs with trusted lenders and brokers to help you secure construction finance from £10,000 and up—quickly and with no obligation.

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Clear, fair, not misleading: We’re not a lender and we don’t provide financial advice. We connect UK businesses with finance brokers and lenders. Credit is subject to status and affordability. Security and/or personal guarantees may be required. Missing payments can negatively affect your credit rating and, for secured borrowing, your assets may be at risk.

Short answer: Construction business loans are finance solutions tailored to the sector—helping fund materials, plant, labour, and bridge gaps between milestone payments and retentions. To get funding fast, complete a 2‑minute enquiry with Fast Business Loans. We’ll match your company with suitable UK brokers/lenders for options such as unsecured/secured loans, invoice finance for construction, asset and equipment finance, and bridging/development facilities. You compare and decide—no obligation.

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What Are Construction Business Loans?

Construction finance covers a range of funding options designed specifically for UK building and contracting companies. It can help you:

• Buy materials and plant before you’re paid
• Cover labour and subcontractor costs between valuations
• Bridge cash flow gaps created by 30–60+ day terms and retentions
• Acquire or upgrade vehicles, plant and equipment
• Fund site acquisition and development costs with specialist facilities

Solutions include unsecured and secured business loans, asset and equipment finance, invoice finance (including factoring and discounting), contract finance, bridging and development finance, VAT and short-term working capital lines.

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Who We Help in the Construction Supply Chain

We match UK limited companies and LLPs across the sector, including:

• Main contractors and subcontractors operating under CIS (see gov.uk CIS guidance)
• Builders, groundworks and civil engineering firms
• M&E, HVAC, electrical, plumbing and roofing contractors
• Scaffolding, plant hire, demolition, fit-out and shopfitting businesses
• Developers and small housebuilders

We understand stage payments, retentions, seasonality, and the pressures of project timelines. If you need help exploring construction business loans that align with your pipeline and cash cycle, we’ll connect you to suitable specialists.

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Types of Construction Finance We Can Connect You To

Unsecured and Secured Business Loans

Use for working capital, materials, and labour—particularly when you’re scaling for new contracts. Typically fixed terms with monthly repayments. Unsecured facilities may require a personal guarantee; secured loans take security over assets or property. All offers are subject to status and affordability; rates and terms vary by lender.

Asset and Equipment Finance (Hire Purchase, Leasing)

Fund plant, machinery, tools and specialist kit while preserving cash flow. The asset often acts as security. Options include Hire Purchase (with ownership at the end, sometimes an option-to-purchase fee) and leasing (with or without balloons). See our pages on asset and equipment finance and equipment finance.

Invoice Finance (Factoring and Invoice Discounting)

Unlock cash tied up in staged invoices and long payment terms. Advance a percentage of invoice value immediately; the remainder (less fees) on client payment. Facilities can scale with turnover. Pricing and advance rates depend on debtor quality, sector risk and facility structure. Learn more about invoice finance for construction.

Contract Finance / Project Finance

Funding against specific contracts, often with strong counterparties. Aligns drawdowns and repayments to project milestones. Underwriting focuses on contract terms, valuation process, and risk allocation.

Bridging and Development Finance

Short-term, property-linked facilities for site acquisition, build costs or exit bridging. Typically secured on property/land, with staged drawdowns and potential interest roll-up. A clear exit strategy is essential. Higher risk profile—pricing reflects this.

Vehicle and Fleet Finance

Finance for vans, pickups, and HGVs through HP, lease or contract hire—helping you budget with predictable costs. Explore options on van and fleet finance.

VAT and Tax Funding

Smooth quarterly VAT peaks or unexpected liabilities to avoid HMRC pressure and protect day-to-day cash flow.

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How Our Free Matching Service Works

1. Complete a 2‑minute enquiry with your company details, funding need and timeframe. There’s no obligation, and this initial step won’t impact your credit score.
2. We match you with UK lenders/brokers who understand construction and can support your requirement (from £10,000+).
3. Rapid response by phone/email to discuss options, documents and indicative terms.
4. You compare and decide. Proceed only if you’re happy with the solution. We’re an introducer, not a lender.

We share your details only with relevant partners for this enquiry and handle your data securely. See our privacy policy for more.

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Common Funding Scenarios We See in Construction

• Material deposits required before suppliers release stock
• Hiring extra labour to hit programme deadlines or accelerate phases
• Covering CIS/PAYE during 30–60+ day payment terms
• Buying or upgrading plant (excavators, dumpers, telehandlers, MEWPs)
• Adding vehicles for new contracts or regional expansion
• Bridging cash flow until client valuation is certified or retention released
• Mobilisation costs immediately after winning a tender
• Green upgrades such as efficient plant or EVs—see sustainability business loans if relevant

Whether you need short-term working capital or a long-term asset facility, we’ll connect you with partners who can move quickly and understand construction risk.

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Eligibility and What Lenders May Look For

Every lender is different, but typical assessment factors include:

• Time trading and turnover band
• Contract pipeline or order book (creditworthy counterparties help)
• Financials: bank statements, filed accounts, management information
• Security available (assets or property) and personal/director guarantees
• Credit history: imperfect credit may still be considered by some

Documents that speed decisions:

• Latest 3–6 months’ business bank statements
• Recent accounts or management figures
• Details of contracts, invoices, applications and retentions
• Asset quotes/specifications for plant or vehicles

Important:

• Credit is subject to status and affordability
• Rates, terms and availability vary by lender and your circumstances
• Security and/or personal guarantees may be required
• Missing payments can negatively affect your credit rating and, for secured borrowing, your assets may be at risk

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Costs, Terms and Repayments: What to Expect

Pricing depends on risk, facility type, term, and the security available. Typical term ranges:

• Business loans: around 6–60 months
• Asset finance: around 12–72 months
• Invoice finance: ongoing revolving facility
• Bridging/development: short term with a defined exit strategy

Fees may include arrangement or documentation fees, interest, and broker fees (if applicable and disclosed by our partners). Early settlement terms vary by provider—your matched lender/broker will explain all costs clearly so you can assess value and affordability.

We don’t quote standard APRs because every case is different. You’ll receive personalised, no-obligation options once matched.

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Why Choose Fast Business Loans for Construction Funding

• Construction-savvy: We understand stage payments, retentions, CIS, and seasonality
• Speed: Short enquiry. Fast matching to relevant lenders/brokers
• Choice: Wide panel of trusted UK partners for loans, invoice finance, asset finance, vehicles, and more
• No obligation, free to use: You decide whether to proceed
• Introducer, not a lender: Transparent and straightforward process
• Trust and privacy: See our about page and privacy policy

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Real-World Examples (anonymised)

• Groundworks firm: Secured £150k in staged Hire Purchase for two telehandlers across 60 months. Outcome: protected working capital and met a new site start date without delaying procurement.
• Electrical contractor: Implemented an invoice discounting facility to fund 60-day terms on M&E projects. Outcome: stabilised payroll and materials spend while growing monthly billings.
• Small developer: Arranged development finance for a 7-unit scheme with staged drawdowns linked to QS sign-offs and an exit via completed sales. Outcome: aligned funding to build milestones and improved cost control.

Results vary; all finance is subject to status and terms. Illustrations only—these are not offers.

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FAQs: Construction Business Loans

Can start-ups or newly formed contractors apply?

Some partners will consider new companies where affordability is demonstrable and appropriate security or guarantees are available. Options vary by lender and contract profile.

Will my enquiry affect my credit score?

No. Submitting an enquiry to Fast Business Loans does not affect your credit score. Credit checks may be run by our partners only if you choose to proceed.

Do I need security or a personal guarantee?

It depends on the product and lender. Unsecured loans often require a personal guarantee; asset and property-backed facilities may rely on security against those assets.

Can I fund materials before I get paid by the client?

Yes. Short-term working capital, invoice finance or contract finance can help cover upfront costs while you wait for valuations or retentions.

What’s the difference between invoice finance and a loan?

Invoice finance advances cash against your invoices and scales with turnover; loans provide a fixed sum repaid over a set term. Many firms use a mix of both.

How fast can I get a decision?

You’ll typically hear back quickly during business hours. Exact time to offer and funding depends on product type, documentation and your circumstances.

Do you charge me a fee?

Our matching service is free for business owners, with no obligation. Any lender or broker fees are disclosed directly by our partners.

What information do I need to provide?

Basic company details, funding purpose and amount (from £10,000+), plus recent bank statements and accounts. Contract details and quotes help speed things up.

Can I apply if I’ve been declined elsewhere?

Yes. Different lenders have different criteria. Our panel includes specialists who may still be able to help, subject to status.

Are your partners regulated?

Our partners follow FCA financial promotion standards and treat customers fairly. For transparency on promotions, see the FCA guidance on “clear, fair and not misleading” communications here.

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Important Information and Fair, Clear, Not Misleading Notice

Fast Business Loans is an introducer, not a lender, and does not provide financial advice. Our service is free for business owners and there’s no obligation to proceed. Finance is subject to status, affordability and terms. Security and/or personal guarantees may be required. Missing payments can negatively affect your credit rating and, for secured borrowing, your assets may be at risk. Any examples are for illustration only and not an offer. We only share your details with relevant partners to process your enquiry.

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It takes less than 2 minutes. No obligation. Fast response by phone/email. Get matched to UK construction finance specialists today.

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Written by Fast Business Loans Content Team – UK Business Finance Content Lead.
Last updated: [Update on publish date]

Footer notice: Fast Business Loans is an introducer, not a lender, and does not provide financial advice. We connect businesses with trusted brokers and lenders. Finance is subject to status, affordability and terms. Security and/or personal guarantees may be required. Missing payments can negatively affect your credit rating and, for secured borrowing, your assets may be at risk. Examples are for illustration only and are not offers. Your details are shared only with relevant partners to process your enquiry. No obligation to proceed.

– What are construction business loans? They are sector-specific funding solutions for UK builders and contractors that cover materials, labour, plant, and cash flow gaps between milestones and retentions.

– Are you a lender or a broker? Fast Business Loans is an introducer that connects UK limited companies and LLPs with trusted lenders and brokers, not a lender or financial adviser.

– How quickly can I get a decision and funding? You’ll typically hear back quickly during business hours, with time to offer and funding depending on product type, documents, and your circumstances.

– Will my enquiry affect my credit score? No—submitting an enquiry to Fast Business Loans does not affect your credit score, and partners will only run checks if you choose to proceed.

– What finance options can I access? Options include unsecured and secured business loans, invoice finance (factoring and discounting), asset and equipment finance, contract finance, bridging and development finance, plus VAT and vehicle facilities.

– Can I fund materials and payroll while waiting for valuations or retentions? Yes—short‑term working capital, invoice finance or contract finance can fund materials, labour and CIS/PAYE while you wait for valuations or retentions.

– Do I need security or a personal guarantee? It depends on the lender and product; unsecured loans often require a personal guarantee, while asset or property‑backed facilities take security over those assets.

– Can start-ups or firms with imperfect credit apply? Some partners will consider start-ups and businesses with imperfect credit where affordability can be evidenced and suitable security or guarantees are available.

– How much can I borrow and what are the typical terms and costs? Facilities generally start from around £10,000, with typical terms of about 6–60 months for loans (12–72 for asset finance) and pricing based on risk, security and your circumstances, subject to status and affordability.

– Does it cost anything to use Fast Business Loans and how do I apply? Our matching service is free and without obligation—simply complete a 2‑minute enquiry and we’ll connect you with relevant UK construction finance specialists.