Construction Business Loans

Secure funding for construction projects, equipment purchases, and working capital. Explore business funding through Fundably. Eligibility criteria apply.

Typical Range

£10k – £5m

Average Loan

£250k

for construction

Decision Speed

24–48 hrs

for unsecured loans

Eligibility requirements

Minimum 12 months trading history in construction or related trades
Annual turnover of at least £50,000
Registered UK business (sole trader, partnership, or limited company)
No outstanding CCJs over £500 in the last 12 months (some lenders accept adverse credit)

Loan types available

Unsecured Business Loan

Rate: 6.9% – 24.9% APR
Term: 1 – 5 years
Security: No security required
Best for: Working capital, hiring subcontractors, bridging payment gaps between project milestones

Secured Business Loan

Rate: 4.5% – 14.9% APR
Term: 1 – 25 years
Security: Property, plant, or heavy equipment
Best for: Large project finance, yard or depot purchases, major equipment acquisitions

Asset Finance

Rate: 5.2% – 12.5% APR
Term: 1 – 7 years
Security: The asset being financed
Best for: Excavators, cranes, vehicles, scaffolding, and other construction plant and machinery

Representative example

Borrow £250,000 over 36 months at 9.9% APR (fixed). Monthly repayment: ~£8,055. Rates depend on your circumstances and the type of loan.

Common challenges

Late payments from main contractors and project developers can cause serious cash flow gaps
Seasonal demand fluctuations, particularly reduced activity during winter months
High upfront costs for materials, plant hire, and labour before milestone payments are received
Meeting insurance, health & safety, and CSCS compliance requirements adds to operating costs

Bad credit?

Some specialist lenders consider construction businesses with imperfect credit. You may need a personal guarantee or higher rate, but options may be available. Fundably may use a soft credit check for matching, which does not affect your credit score. A hard check may happen if you choose to proceed with a lender.

Frequently asked questions

Can I get a construction business loan with late payments on my credit file?

Yes. Many specialist construction lenders understand that late payments are common in the sector due to contractor payment cycles. Lendus works with lenders who consider your overall business performance rather than just credit scores. You may pay a slightly higher rate, but funding is often still available.

How quickly can I receive funds for a construction loan?

Unsecured loans can be funded within 24-48 hours of approval. Secured loans and asset finance typically take 5-14 working days depending on the valuation and due diligence required. If you need urgent working capital, an unsecured loan or merchant cash advance may be the fastest option.

Can I use a business loan to buy construction equipment?

Absolutely. Asset finance is one of the most popular options for purchasing or leasing construction equipment such as excavators, dumpers, cranes, and vehicles. The equipment itself acts as security, which often means better rates and no need for additional collateral. You can also use a general business loan if you prefer outright ownership from day one.

What is the best way to manage cash flow gaps between project payments?

Many construction businesses use invoice finance or a revolving credit facility to bridge the gap between completing work and receiving payment. These products let you release up to 90% of the value of unpaid invoices within 24 hours. Lendus can compare invoice finance options alongside traditional loans to find the best fit for your situation.

Equipment finance for construction businesses

Buying a specific machine or vehicle is usually cheaper than a general business loan, because the asset itself is the security. These are the items construction businesses most often fund, with the price range we see quoted in the UK.

Equipment	Typical price range	Finance page
Tipper Truck	£30k to £120k	Tipper Truck finance
Access Platform	£12k to £150k	Access Platform finance
Asphalt Paver	£130k to £500k	Asphalt Paver finance
Backhoe Loader	£55k to £110k	Backhoe Loader finance
Boom Lift	£45k to £220k	Boom Lift finance
Breaker	£4k to £35k	Breaker finance
Bulldozer	£90k to £450k	Bulldozer finance
Cement Mixer	£500 to £12k	Cement Mixer finance
Cherry Picker	£25k to £180k	Cherry Picker finance
Compactor Plate	£800 to £7k	Compactor Plate finance
Concrete Mixer	£80k to £250k	Concrete Mixer finance
Concrete Pump	£60k to £450k	Concrete Pump finance

Browse all equipment finance pages

Guides and resources

How to Get a Business Loan Business Loan Eligibility Secured vs Unsecured Best Business Loans UK iwoca Review Funding Circle Review

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For UK limited companies with at least 3 months’ trading and monthly revenue.