Industry Guide

Construction Business Finance UK 2025

Funding options for builders and contractors. Invoice factoring for payment delays, plant finance, project funding. £5k-£5m available for your business growth.

£5k-£5m

Funding range

1.5-3.5%

Invoice finance

5-9%

Plant finance APR

3-5 days

Approval time

Construction-Specific Funding Challenges

Long payment terms: 30-90 days common, some public sector 120 days

Retention payments: 5-10% held for 12 months post-completion

Upfront material costs: Buy materials before getting paid

Plant & equipment costs: £50k-£500k for machinery

Best Funding Types for Construction

Invoice Finance

Plant & Equipment Finance

Finance diggers, dumpers, scaffolding, tools:

Amount:

£5k-£2m per asset

APR:

5-9% typically

Term:

2-7 years

Deposit:

10-30%

Project Finance

For specific large projects (£100k+ value):

Fund materials and labour for single project

Repay from project payment

Specialist construction lenders

Specialist Construction Lenders

MarketFinance

Invoice finance for construction, 1-2 day decisions

Bibby Financial

Construction invoice factoring specialist

Siemens Financial

Plant & equipment finance

Lombard

Construction equipment, vehicles

Managing Construction Cash Flow

Common cash flow solutions:

Invoice finance for payment delays (80-90% advance)

Overdraft for material purchases (flexible)

Equipment finance for plant (preserve cash)

Retention finance (access 5-10% retention money early)

Construction Finance Quotes

We specialize in construction cash flow

Compare invoice finance, plant finance, and working capital for builders

Get Construction Funding

Frequently Asked Questions

What are the best funding types for construction businesses?

Best funding types: Invoice Finance (most popular - perfect for payment delays, advance 80-90% of invoice immediately, up to £10m facility, 1.5-3.5% discount fee, solves 60-90 day payment terms), Plant & Equipment Finance (finance diggers, dumpers, scaffolding, £5k-£2m per asset, 5-9% APR, 2-7 years, 10-30% deposit), Project Finance (for specific large projects £100k+, fund materials and labour, repay from project payment, specialist construction lenders).

What challenges do construction businesses face?

Construction businesses face unique challenges: Long payment terms (30-90 days common, some public sector 120 days), retention payments (5-10% held for 12 months post-completion), upfront material costs (buy materials before getting paid), and plant & equipment costs (£50k-£500k for machinery).

Which lenders specialize in construction finance?

Specialist construction lenders: MarketFinance (invoice finance for construction, 1-2 day decisions), Bibby Financial (construction invoice factoring specialist), Siemens Financial (plant & equipment finance), Lombard (construction equipment, vehicles).