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Construction Finance
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Written by Gary Burns
Gary Burns is Head of Construction in our funding division. He is a specialist in arranging commercial finance, with deep expertise in asset finance, as well as in complex refinance and restructuring agreements. Gary possesses over 30 years in the finance sector, providing him with thorough experience to arrange funding solutions to construction firms across the UK.
Finance your construction equipment
Construction businesses run on machinery, and keeping the right kit on site, whether that's excavators, rollers, dumpers, or telehandlers, is what keeps projects moving and deadlines met. But acquiring or replacing equipment outright can tie up capital that's needed for materials, labour, and the day-to-day running of UK businesses.
With so many equipment types, suppliers, and finance structures to consider, working out the best way to fund your next purchase isn't always straightforward.
That's where our dedicated construction finance team can help. Whether you need hire purchase, a finance lease, or asset refinance against equipment you already own, we'll help you find a solution that fits how your business operates.
Whether you're growing your plant fleet, replacing ageing machinery, or purchasing new or used equipment across multiple suppliers at once, we'll manage the process so you can stay focused on the job in hand.
We can also arrange finance for other construction equipment, including cranes, bulldozers, and crushers.
What is construction finance?
Construction finance provides businesses in the sector the opportunity to purchase new assets, restructure existing agreements, and fund new projects.
It is imperative that construction businesses have finance solutions that address the unique pressures they experience, providing the necessary support to positively impact the economy in the UK.
UK Business Finance are construction finance specialists and can help you find the most appropriate form of funding for your needs.
Secure Your Funding In Minutes – Get a FREE No Obligation Quote
With full market access and absolutely no ties to any lender, we can objectively match you with the most effective and cost-efficient source of business finance. Contact our team today!
Benefits of Construction Finance
Cash flow management: Using construction finance ensures businesses can purchase new or used assets through a structure that aligns with their individual needs. Rather than paying for a costly asset upfront, asset finance offers construction businesses the ability to pay a deposit upfront, with the remaining costs able to be spread out over a manageable repayment schedule.
Raise funds: Asset refinance can be very useful for businesses in the construction sector. The asset is sold and then leased back to the business, ensuring they still have operational use of the asset. This provides businesses with a lump sum of cash to use for a variety of needs, whilst paying back the asset. At the end of the agreement, the business resumes ownership.
Increase efficiency: Construction finance enables businesses to purchase the newest and most expensive equipment with a manageable solution. This ensures that construction firms have the equipment that can improve the quality and efficiency of their services, overall benefitting their business.
Budgeting: Construction finance provides businesses with a facility that has set repayment terms. This ensures that construction firms know when and how much they need to pay each month in advance. This therefore means that businesses can plan their expenses and not encounter any surprise costs.
Flexibility: Construction businesses are often able to have repayment terms tailored to their specific needs. This allows businesses to acquire a new or used asset with a funding solution that works with their finances, ensuring their day-to-day capital isn’t jeopardised.
How we helped a plant hire business
A plant hire business based in the East Midlands approached UK Business Finance to fund a significant expansion of their machinery fleet, including rollers, dumpers, and excavators.
The equipment was being sourced from four separate suppliers, which meant the client needed a funding solution flexible enough to support multiple purchases running in parallel, each with its own delivery timeline.
After understanding the client's requirements, our team identified a hire purchase agreement as the most suitable structure. Drawing on our relationships across a wide panel of funders, we secured a facility that allowed the client to proceed with each supplier without delay, and the full arrangement was completed within 48 hours of the funder being confirmed.
We arranged £1.7 million in funding for the client on this basis. As a result, the business now operates a newer, larger, and higher-quality fleet, giving their own customers a stronger range of machinery to hire and putting the business in a much better position to take on future contracts.
Apply for construction finance
UK Business Finance is a commercial finance broker with access to an extensive panel of lenders, allowing us to source funding solutions that are specifically structured around the demands of construction businesses.
Here is how we can help:
- Get a no-obligation quote in just 60 seconds
- An extensive lender panel ensuring you find the right fit for your business
- Our team handles the application process with funders on your behalf
- High expertise in construction finance to ensure a professional and reliable service
To find out more about the funding options for construction businesses, contact our expert construction finance team.
What finance can be used for construction finance?
Construction businesses can access a range of finance solutions depending on their needs and circumstances. Asset finance and finance leases are well suited to businesses looking to acquire new plant and equipment through structured repayments, while asset refinance can unlock the value of machinery you already own. Unsecured loans offer a more flexible route for businesses with a range of financial requirements and no specific asset to secure against.
UK Business Finance can help construction businesses find a finance solution that fits their situation. Whether you are looking to expand your fleet or release capital from existing equipment, our team can manage the process from start to finish.
| Asset Finance | Asset Refinance | Finance Lease | Unsecured Loans | |
|---|---|---|---|---|
Typical term length | Medium Term | Medium Term | Medium Term | Short Term |
Flexibility | Medium | Medium | Medium | High |
Deposit required? | Yes | Yes | Yes | No |
Purpose | Purchase assets | Raise capital for multiple ventures | Lease assets | Multiple business needs |
How do we work?
1. Get a Customised Quote
When you reach out to us, we will likely request that you provide the following information. Your latest set of accounts, previous 6 months’ banks statements and director’s personal details.
2. Compare Options
Once the information from step 1 has been confirmed, we will reach out to our extensive panel of funders, who under normal circumstances, respond with an answer in 48 hours. After this, Know Your Customer (KYC) and identification checks will take place for the business and its directors.
3. Finalise the agreement
As soon as you agree to move forward with the terms and conditions, you will receive the relevant documents for you to sign and then return. After the final checks have been completed, the funds will be released. The time taken to release the funding varies depending on the funder, ranging from 24 to 72 hours.
Why does your business need construction finance?
Construction businesses face a range of financial pressures, from managing the gap between project costs, keeping equipment up to date and maintaining the working capital needed to sustain growth. The right finance solution can make a meaningful difference to how a business operates day to day and plans for the future.
- Acquire new assets
- Arrange payments to be in line with cash flow
- Wide range of finance facilities
- Opportunity to fund growth investments
- Upgrade facilities
- Refinance existing assets
- Funding to cover unexpected costs
- Boost efficiency of operations
Why Choose UK Business Finance
100% Independent Broker
We're not tied to any lender. With access to 90+ finance providers, we match you with the most suitable funding solution, not the one that pays us the best commission.
Callback Within 30 Minutes
From the moment you contact us, we commit to responding within 30 minutes. When your business needs funding fast, every hour counts.
Nationwide Coverage, Local Expertise
With 8 regional offices and 100+ supporting locations across the UK, you'll work with a finance specialist who understands your local market.
Construction Finance FAQs
What type of construction assets can I finance through your services?
With UK Business Finance, you can finance a wide range of different agriculture assets. These include excavators, cranes, bulldozers, dump trucks, access platforms, scaffolding, and a range of other construction equipment.
How can I increase my chances of securing construction finance?
To boost your chances of approval, it’s important to maintain a good credit score and keep your financial documents well-organised. Demonstrating stable income and a healthy trading history will be beneficial. Reducing any existing debts can also improve your affordability profile. Additionally, clearly outlining the purpose of the finance and how it will benefit your business can help reassure lenders of your reliability.
What documents do I need to provide with construction finance?
To apply, you will need to provide a range of documents to verify your business’s financial health. Documents to provide often include your business’s latest financial statements, 6 months of company bank statements, full name, address, DOB and homeownership status of all directors.
What are the eligibility criteria for securing construction finance?
While specific criteria can vary between lenders, generally, you will need to demonstrate that you are a registered UK business, provide full annual accounts, previous bank statements, plus personal details such as full name, date of birth and personal address.
What are the different finance options available with construction finance?
We can provide solutions including hire purchase agreements, finance leases and asset refinance. As well as this, we can arrange unsecured loans and working capital loans.
What are the typical terms for construction finance?
The terms and interest rates may depend on multiple factors, including the age and condition of the asset, the amount being financed, the length of the repayment term, your business’ creditworthiness, current market interest rates and the specific finance product chosen.
