Finance for construction businesses

Construction is one of the hardest sectors to fund through a high-street bank. Payment terms run long, valuations come late, retentions sit unpaid for a year, and CIS deductions squeeze cash further. To a bank's scoring system that looks like risk. To a lender who knows the industry, it looks like a normal Tuesday.

Finance for contractors and subcontractors

Plant and equipment finance. Diggers, dumpers, telehandlers, scaffolding, tools. Spread the cost with hire purchase or leasing, or refinance kit you already own. See asset finance.

Vans and pickups. Keep the crew moving. See van finance.

Invoice and application finance. Get cash against interim valuations and invoices while you wait for the main contractor's payment run. See invoice finance.

Business loans. Fund materials and labour up front so you can take on a contract that is bigger than your current cash. See business loans.

Why construction firms get turned down

Banks look backwards at your accounts. Construction firms are often at their most cash-hungry when they are growing fastest, which is exactly when their accounts look thinnest. Long payment terms, retentions and one slow-paying main contractor can make a healthy business look stretched on paper.

Specialist lenders look forward as well. Your order book, the contracts you've won and the main contractors you work for all count. That is how firms with a bank decline in their pocket still get funded.

Retentions and payment terms

Retentions tie up money you have already earned, often for the length of the defects period. The government has announced plans to ban retention payments in construction contracts, set out in its "Time to Pay Up" response in March 2026, though the detail and start date are still to be confirmed. Until then, finance can bridge the gap.

Taking on a bigger contract

The jump from £100k jobs to £500k jobs is where many construction firms stall. You need to buy materials, hire labour and maybe add plant before the first valuation is paid, and the main contractor might take 60 days or more to settle. Turning down the work keeps you safe and keeps you small.

Finance lets you say yes. A business loan or a revolving facility funds the upfront costs. Invoice finance releases cash as each valuation is certified. Asset finance adds the extra kit without draining the account. The right mix depends on the contract, and getting it set up before you sign is far easier than scrambling once the job has started.

What lenders will ask for

The stronger your pipeline looks on paper, the better the terms. Your Lending Expert will help you present it.

A real example

A Glasgow construction firm came to us with an offer from their own bank. We took it to the market anyway. The deal we found saved them £250 a month on the same facility, money that goes straight back into the business every month for the life of the agreement.

How it works with Flite

Tell us what you need it for: a machine, a cash flow gap, a contract you want to win. Your Lending Expert checks 120+ lenders and lays out the options plainly. Many clients have a decision within 24 to 48 hours.

Flite is free to you. We are paid by the lender when your deal completes.