Business Loans for Construction & Trades

Why construction firms borrow

The lag between cost and payment defines the sector. Borrowing commonly funds:

• Materials and labour ahead of stage payments.
• Plant, machinery and tools.
• Vans and vehicles through asset finance.
• Payroll across long project timelines.
• Taking on larger contracts that need working capital up front.

How much can a construction business borrow?

Unsecured lenders advance against turnover, while asset finance is sized on the equipment or vehicles being funded. A firm with steady contract income can often access one to two months of turnover unsecured, with larger sums available against assets or secured on property.

What lenders look at for trades

Lenders understand lumpy construction income, so they look at the pipeline as well as the bank account. Evidence of signed contracts, reliable clients and tidy banking reassures them. A clear plan showing how a contract will repay the borrowing is the strongest case you can make.

Best finance options for construction

Asset finance spreads the cost of plant and vehicles over their working life. An unsecured business loan bridges project cash flow, and invoice finance can release cash tied up in unpaid applications for payment. For larger or asset-backed needs, the Growth Guarantee Scheme may fit.

Bridging stage payments and retentions

Retentions and delayed stage payments tie up cash you have already earned. Short-term borrowing or invoice finance can bridge that, letting you take on the next job without waiting to be paid for the last. Match the facility to the payment timeline of each contract.

Compare your finance options