UK business loans for construction

UK construction business loans (general trades, subcontractors, main contractors) are shaped by CIS retentions and stage-payment cycles, with sub-contractors facing main-contractor payment terms of 60 to 90 days. Invoice finance against quality main-contractor invoices solves the headline cash trap; Allica Bank covers asset finance for plant; iwoca and Funding Circle handle working-capital term loans bridging stage payments. Typical tickets £25k to £500k. Recent CCJs from supplier disputes are common and route to specialist post-decline lenders.

Cash-flow shape

Lumpy stage-payment dependent. CIS retentions trapped at end of contract. Sub-trades face main-contractor payment cycles often 60-90 days.

Products that fit

  • Invoice finance against quality main-contractor invoices
  • Asset finance for plant
  • Working-capital term loans bridging stage payments
  • Bonds and guarantees (specialist)

Top UK lenders for construction

  • Funding Circle
  • Allica Bank (asset and commercial)
  • iwoca (working capital)
  • Specialist construction asset-finance lenders

Typical tickets

£25k to £500k

Watch outs

  • Sole-trade structure, many lenders prefer Ltd.
  • Single-main-contractor concentration risk.
  • Recent CCJs from supplier disputes are common.

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Last reviewed: 2026-04-26.

Trusted comparison data sourced from

UK FinanceABFABusiness MoneyFundInvoiceBCR PublishingThe Gazette
85 providers compared Updated April 2026 Independent editorial