Independent ranking
Best UK business loans for construction
Independent UK lender rankings from desk research, post-decline options included. FundBiz does not run a credit check. Typical decision times vary by product and lender and are stated in the ranking below.
Start here · What do you need?
Construction borrowing is shaped by retentions, CIS tax deductions and stage-payment cycles. Specialist construction lenders dominate over generalists because they understand the cash-trap problem unique to the sector. This FundBiz ranking assesses 5 UK lenders for "best uk business loans for construction", weighting primarily on construction sector specialism (25%), cis-aware underwriting (20%), asset finance for plant (20%) (see the full weighted criteria below). Scores are our own desk-research assessment built from the FCA Register, Companies House filings and each lender's published product criteria, not customer reviews and not paid placement. Lenders don't pay for inclusion or rankings. If you send an enquiry, we pass it to a business finance broker, who pays us a fixed fee; you pay nothing.
Source: FundBiz methodology. Editorial by Best Business Loans Ltd (16833937).
Want the sector overview, cash-flow shape and typical decline reasons instead? See construction business finance →
Founder & Managing Director, Muswell Rose, FundBiz
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind FundBiz. His background runs through commercial finance, mortgages and fintech, including as managing director of an invoice finance business. He oversees FundBiz's guides and lender reviews.
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SME term loan, asset finance + commercial mortgage · £25k to £150k (business loans); up to £15m (commercial mortgages) · Money in days on business loans; longer for larger facilities
Asset finance for plant plus commercial mortgages for owned yards. Strongest mainstream option.
Our assessment: Eligibility breadth: strong · Decision speed: average (money in days on business loans; longer for larger facilities).
Read full Allica Bank review → -
Term loan · £10k to £750k · As little as 5 minutes
Term loans for established Ltd contractors with clean credit.
Our assessment: Eligibility breadth: top tier · Decision speed: strong (as little as 5 minutes).
Read full Funding Circle review → -
Flexi-loan / line of credit · £1k to £1m · Same day to 24 hours
Working capital bridging stage payments; flexi-loan helps with retention timing.
Our assessment: Eligibility breadth: strong · Decision speed: top tier (same day to 24 hours).
Read full iwoca review → -
Short-term business loans and supplier invoice payment · £10k to £3m · Typically 24 to 48 hours; same-day funding available
Short-term loans assessed on cash flow, for contractors with 12+ months of trading and £10,000+ monthly turnover.
Our assessment: Eligibility breadth: strong · Decision speed: top tier (typically 24 to 48 hours; same-day funding available).
Read full Capify review → -
Term loan with flex features (unsecured and secured options) · £10k to £1m · Decisions and funding in as little as 24 hours
Flex features genuinely useful for stage-payment-driven cashflow.
Our assessment: Eligibility breadth: strong · Decision speed: strong (decisions and funding in as little as 24 hours).
Read full Fleximize review →
Side-by-side comparison
| Lender | Typical rate | Ticket | Decision | Best for |
|---|---|---|---|---|
| Allica Bank | Business loans 9.90% to 13.75% interest; other products quoted per deal | £25k to £150k (business loans); up to £15m (commercial mortgages) | Money in days on business loans; longer for larger facilities | Established Ltd companies with three or more years of filed accounts |
| Funding Circle | From 6.9% per year | £10k to £750k | As little as 5 minutes | Established Ltds with a trading record and clean credit |
| iwoca | From 1.5% per 30 days | £1k to £1m | Same day to 24 hours | Working capital and cash-flow-gap files needing flexible draw-down |
| Capify | Factor rate set by risk (not published) | £10k to £3m | Typically 24 to 48 hours; same-day funding available | UK businesses trading 12+ months with £10,000+ monthly turnover that need short-term funds quickly |
| Fleximize | 0.9% to 2.9% per month | £10k to £1m | Decisions and funding in as little as 24 hours | Seasonal businesses needing payment flex |
Sources: each lender's own published product pages: Allica Bank · Funding Circle · iwoca · Capify · Fleximize. Figures change; confirm with the lender before you rely on one.
What is the best business loan for a UK construction company?
For plant and equipment, asset finance from Allica Bank or Aldermore. For working capital across retentions, CIS deductions and stage payments, an iwoca flexi-loan. For owned yards and offices, an Allica or Shawbrook commercial mortgage.
How do retentions and CIS deductions affect UK construction lending?
Two separate things hold cash back. Retentions are a share of each payment kept by the client until defects are cleared. CIS deductions are tax a contractor withholds from a subcontractor (20% if registered, 30% if not, per GOV.UK) and passes to HMRC. Lenders that understand construction look at cash received after both.
Can UK subcontractors with stage-payment cycles get finance?
Yes, but invoice finance fits better than term debt for the working-capital piece. iwoca flexi-loan covers shorter gaps. Term debt suits asset purchases and one-off investments, not the recurring stage-payment cash trap.
What is the typical asset finance rate for UK construction plant?
Asset finance lenders quote plant hire purchase per case, depending on the age of the asset, the deposit and the credit profile. Used plant usually prices higher than new, and established Ltd contractors with clean credit get the better rates.
Do main contractors and subcontractors face different lending criteria?
Yes. Main contractors are underwritten on contract pipeline and end-client quality. Subcontractors are underwritten on main-contractor concentration risk; high reliance on one main is itself a decline reason at some lenders.
How we ranked these
We weight construction sector specialism (25%), cis-aware underwriting (20%), asset finance for plant (20%), decision speed (15%), eligibility breadth (20%). Rankings reflect our published editorial methodology, not any commercial arrangement. See our /methodology/ for the full basis.
Methodology weights
Weights specific to "Best UK business loans for construction":
- Construction sector specialism25%
- CIS-aware underwriting20%
- Asset finance for plant20%
- Decision speed15%
- Eligibility breadth20%
Read the full methodology for how we score and rank the lenders we review.
Also considered
- Specialist construction asset-finance lenders
- Bibby Financial Services (invoice finance for sub-contractors)
Not for
Sole traders without strong banking history; new contractors tied to a single main-contractor.
Send an enquiry
Tell us what you need in 2 minutes. FundBiz is not a lender and does not run a credit check. We pass your enquiry to a business finance broker, who will contact you about your options. For limited companies, LLPs and partnerships with four or more partners.
Send an enquiry →FundBiz is owned and operated by Best Business Loans Ltd, directed by Oliver Mackman. Editorial by Best Business Loans Ltd (16833937).