Construction finance

Cover the construction cost by getting purpose-built finance

  • Custom-made deals for the construction sector
  • Settles cash flow problems with ease
  • Access to different financial products
  • Adjustable repayment structure
  • Opportunity to take out up to 75% LTV

Carry out construction or redevelopment work with a finance facility

If you are a construction business, you must deal with market volatility and competition. Having access to working capital is crucial to keep your business running. What to do if your cash reserve does not have adequate funds to cover a new construction project? Plug the gap by taking out finance for construction available in the UK.

Dealing with payment delays while you have to work on the next project is avoidable once you fetch this financing. TheBusinessFunds can play a significant role in helping you filter different offers from prominent providers for construction business finance. Our research establishes how you can expect to have a cost-effective borrowing experience.

Construction cost includes elements like land, material and labour. These expenses can cost you a substantial amount of money. It might force you to break the bank.

Luckily, you are in safe hands when you are with us. We will also try to figure out a problem-based financial solution as finance for construction that must fit your budget. This finance facility would require the following:

  • A down payment depending on the project cost
  • Record of personal credit history
  • Few financial proofs
  • Established business setup with good rapport in the market

What do you mean by Construction Finance?

A construction loan is a purpose-specific short-term financing that you can acquire to fulfil the construction or renovation cost of new commercial premises. Property development finance is the other name, which is again a subcategory of bridging loans.

Now, you must have got some idea about “what is construction finance?”. You can wave goodbye to long waits for payment. It is because construction finance is now available at pocket-friendly rates. This funding comes in handy when purchasing an old or new plot of land.

Equipment is an essential tool that has got frequent uses in this industry. New buys or upgrades are necessary now and then. The overall price can cause a dent in the business’s cash flow. However, we have come to your rescue with our services in finding the most reliable finance provider offering bespoke deals. This funding solution is completely different from a home construction loan.

Business Construction Finance

What is the role of construction assets in getting finance?

You can skip paying the large lump sum for construction equipment by getting asset finance. The classic examples of construction assets you can use to get finance are excavators, bulldozers, crushers, screeners, dumpers, demolition equipment, repairs, vehicles, site plants etc.

Getting under the safety net of construction business finance means experiencing different facilities like:

  • Boost in confidence

    The reason behind the failure of many construction businesses is inadequate cash flow. It leads to the loss of future projects that are a must to racking up revenue for the company. Keeping cash flow consistency intact is possible once you fetch construction business financing.

  • Keep away bad debt

    When your customers do not pay on time, they owe you money. It converts into bad debt. You can rely on this financing solution to avail protection from bad debt. This way, your future projects will not have to suffer anymore.

  • Avoid borrowing a heavy amount

    Traditional lending sources are willing to provide finance in huge amounts as construction loan for house at the same time. However, you might only need a little money. In the absence of suitable options, you consider availing of a traditional loan that cost you more. Construction finance lets you borrow money as short-term funding and as per capacity.

  • Beat business goals

    Construction finance in the UK helps to ease the cash flow pressure from the shoulders of a development contractor or a business. Accomplishing vital business targets is impossible as late payments, long-term payments, etc., are an inevitable part of the construction industry. Ongoing and upcoming projects suffer a lot because of a lack of cash.

    Paying suppliers to receive raw materials becomes tough. This financing option lets you meet payments on time to go ahead with new projects without facing any delay.

  • Fast response for speedy decision

    The process from our end will be hassle-free as we will assist you in sorting out loan providers quickly. You do not have to do anything manually, as everything will happen online. We will do all the legwork for you by perfectly filtering and producing all the information.

Why construction businesses should consider invoice finance?

Like other industries, the construction sector fails to avert circumstances that can blow off the cash flow. Non-receipt of payment from clients is a common experience for a contractor or subcontractor or even for a new developer. Managing the working capital requirement becomes tricky in this situation.

It is not the end of the journey here! Your invoices are vital evidence you can put forward, like security to avail of construction business finance. To get the best, you can:

Construction Invoice Finance
  • Draw out up to 95% of the invoice value
  • Purchase raw materials from the supplier
  • Boost cash flow in the business
  • Focus on upcoming construction
  • Enjoy the fast release of funds

Once you raise an invoice, you can forward it to the provider of construction finance in the UK. After that, they will send the advance amount to sponsor the next stage of your construction project. Financial coverage is available for different invoices, which can be a part of a contract, agreement, purchase order, etc. and even staged or sales invoices.

What types of construction finance are available for companies?

We are familiar with the construction business finance requirements. Every company has distinct needs that might not match with the others. Therefore, we have diversified the solution in ways that can serve everyone's purpose.

We make sure to introduce you to a bunch of efficient lenders who can offer different choices like:

  • Construction-only loans

    This loan is a perfect finance alternative if you want to purchase a piece of land or an old building. This finance for construction lets you spend money on constructing or redeveloping the existing commercial property. The repayment countdown will begin upon completion of the project. You can sell the property or replace it with a mortgage to repay loans.

  • Construction to permanent loans

    It can also be utilised to purchase and build an old or new commercial property. The only difference is that after the completion of construction, the loan will transform into a mortgage. The overall cost of this option is less than the first one. The borrower needs to disburse a few fees for this project.

  • Renovation loan

    As the name suggests, this financing is applicable for renovation purposes but not as construction loan for house. Bulky upgradation in the project site requires the support of this type of funding. It will help you manage all the expenses you will incur for renovation.

How finance facility is useful for construction companies?

You must reflect on the utilities of finance for construction work. It will help you determine if the finance package is suitable based on the purpose you are looking for. Further exploration allows you to ensure the extensive uses of this finance.

Look at the different avenues you can employ it:

Buy equipment and raw materials: You can use construction finance in the UK to purchase raw materials from the supplier and add new equipment to your business. It allows you to focus on new project requirements.

Upgrade company’s facility: At times, you might need to relocate the office of your business or make changes to the existing one. You can gather the necessary cash to spend for this purpose without hesitation.

Hire new members: Your business is expanding, and you need the assistance of additional members. You can use construction business financing to hire new employees and to train them further for adequate support.

Financial coverage for disaster: Sudden damage to your office due to natural calamity will need an immediate cash infusion. Consider getting this finance to manage money to rectify the damage.

How does finance for construction work?

You are at the right place if you are a business looking for construction business finance. We are here to support you throughout the process of borrowing. You can utilise our services to look for a potential loan provider.

If it is your land, you can pay the down payment by using the equity available with the property. You can spend a few minutes here choosing the lender handling your finance request. The process might look similar to getting a construction loan for a house, as the providers might be the same. The steps are as follow:

Send out an online request: Fetch the online form and add your details and preferences. Submit your request so that the lender can receive it.

Undergo a few reviews: The lender will analyse your business plan for the construction work. In addition, the business's financial condition and estimated cost are considered.

Decision:Once the application is successful, lender will send you the agreement. Go through it carefully by keeping “What is construction finance?” in mind.

Site visit by the lender: The lender needs to understand the project viability by visiting the construction site. Loan offers will come from the lender, depending on the analysis results.

Acceptance on the agreement: You will have to examine the agreement. Finally, you must sign it if you agree with the terms and conditions.

Release of payment: The lender will issue the first portion of the payment once the agreement is received. Payments will also continue coming to you at the later stages.

Why ask thebusinessfunds for finance deals?

We are eager to help construction businesses in the UK to grow. We also look forward to assisting them in sustaining their growth through our tailored advice. Our primary concern would be to help them make careful and selective choices in the case of finance for construction.

We will not take care of the collection process, as it is a matter of concern for the lender. We extend our services in the following ways:

Wide reach

We are currently working with a wide network of lenders. It gives you access to different lenders who can diversify offers for you.

Market awareness

We keep exploring the construction finance market to find the best financial solution. Thus, our knowledge is in your interest.

Simplify the approach

We have included steps that does not consume much time. In short, you can save your effort also by taking advantage of our services.

Relationship led facility

We always suggest different kinds of recommendations for every borrower. Our advice is more purpose centric and depends on the preferences of borrowers.


What are the eligibility conditions for construction finance?

You must know that these conditions will vary from lender to lender. The major aspects based on which eligibility is decided are:

  • The business cash flow
  • Overall turnover
  • Ability to pay the down payment
  • Detailed project plan
  • Exit strategy
How much does construction funding cost?

The cost will depend on the unique situation and requirements of the business. Your eligibility will also play a role in determining the cost, which includes:

  • Service charges
  • Discount charges
  • Annual fee
Will surplus charges accompany the construction finance offer?

No, you need not pay any brokerage fees as surplus cash. We will not charge anything from you. Lender will pay us some commission once both parties seal the deal between each other. However, lenders may charge extra for late repayment charges, early repayment fees, or any other. You must personally contact the lender before signing the loan amount for these costs.

Is construction finance cheaper than a mortgage?

With us, you will get the chance to shop around different proposals coming from different lenders. It does not matter if rates vary with the prime rate. You can still make it to a reasonable price as compared to mortgages.

Are there risks involved in the borrowing process?

You should consider validating the risks at the time of making sure if you should consider construction finance. It does come with some risks, which are:

  • Construction not completed within interim time
  • Low to zero contingency budget
  • Increase in default risk
  • Incomplete documentation