Construction Business Finance UK 2026

Construction-Specific Funding

Construction businesses face unique challenges:

• Long payment terms: 30 to 90 days common, some public sector 120 days
• Retention payments: 5 to 10% held for 12 months post-completion
• Upfront material costs: Buy materials before getting paid
• Plant & equipment costs: £50k to £500k for machinery

Best Funding Types for Construction

1. Invoice Finance: Most Popular

Perfect for construction payment delays. Advance 80 to 90% of invoice value immediately.

• Amount: Up to £10m facility
• Cost: 1.5 to 3.5% discount fee
• Approval: 3 to 5 days
• Solve: 60 to 90 day payment terms

2. Plant & Equipment Finance

Finance diggers, dumpers, scaffolding, tools:

• Amount: £5k to £2m per asset
• APR: 5 to 9% typically
• Term: 2 to 7 years
• Deposit: 10 to 30%

3. 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 to 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 to 90% advance)
• Overdraft for material purchases (flexible)
• Equipment finance for plant (preserve cash)
• Retention finance (access 5 to 10% retention money early)