Editorial ranking
Best UK business loans for construction
Editorial UK lender rankings from desk research, post-decline options included. FundBiz does not run a credit check. Where a lender publishes a decision or funding time, it is shown in the ranking below.
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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 one of the finance partners we work with, and we may be paid by the finance partners we introduce you to, by a fixed fee or commission depending on the partner and the finance arranged. It does not change what you pay.
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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- 1. Allica Bank
SME term loan, asset finance + commercial mortgage · £25,001 to £150,000 (business loans); £25k to £2.5m (asset finance); £150k to £15m (commercial mortgages) (its own figures) · Decision by the next working day (its own aim)
Asset finance for plant plus commercial mortgages for owned yards. Strongest mainstream option.
Our assessment: Eligibility breadth: strong · Decision speed: decision by the next working day, its own aim.
Read full Allica Bank review → -
Term loan · £10k to £750k (its own figure) · Decision in as little as 5 minutes, funds typically within 48 hours (its own figures)
Term loans for established Ltd contractors with clean credit.
Our assessment: Eligibility breadth: top tier · Decision speed: decision in as little as 5 minutes, funds typically within 48 hours, its own figures.
Read full Funding Circle review → - 3. iwoca
Flexi-loan / line of credit · £1k to £1m (its own figure) · Many customers get an instant decision; larger loans within 24 hours (its own figures)
Working capital bridging stage payments; flexi-loan helps with retention timing.
Our assessment: Eligibility breadth: strong · Decision speed: many customers get an instant decision; larger loans within 24 hours, its own figures.
Read full iwoca review → - 4. Capify
Short-term business loans and supplier invoice payment · £10k to £3m · Decision in minutes; same-day funding on unsecured loans, 24 to 48 hours on secured (its own figures)
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: decision in minutes; same-day funding on unsecured loans, 24 to 48 hours on secured, its own figures.
Read full Capify review → - 5. Fleximize
Term loan with flex features (unsecured and secured options) · £10k to £1m (its own figure) · Decision in as little as 24 hours (its own figure)
Flex features genuinely useful for stage-payment-driven cashflow.
Our assessment: Eligibility breadth: strong · Decision speed: decision in as little as 24 hours, its own figure.
Read full Fleximize review →
Side-by-side comparison
| Lender | Typical rate | Ticket | Decision | Best for | Source | Checked |
|---|---|---|---|---|---|---|
| Allica Bank | Business loans 9.90% to 13.75% interest; other products quoted per deal | £25,001 to £150,000 (business loans); £25k to £2.5m (asset finance); £150k to £15m (commercial mortgages) (its own figures) | Decision by the next working day (its own aim) | Established Ltd companies with three or more years of filed accounts | Lender's site | |
| Funding Circle | From 6.9% per year | £10k to £750k (its own figure) | Decision in as little as 5 minutes, funds typically within 48 hours (its own figures) | Established Ltds with a trading record and clean credit | Lender's site | |
| iwoca | From 1.5% per 30 days | £1k to £1m (its own figure) | Many customers get an instant decision; larger loans within 24 hours (its own figures) | Working capital you can draw down as you need it | Lender's site | |
| Capify | Factor rate set by risk (not published) | £10k to £3m | Decision in minutes; same-day funding on unsecured loans, 24 to 48 hours on secured (its own figures) | UK businesses trading 12+ months with £10,000+ monthly turnover that need short-term funds quickly | Lender's site | |
| Fleximize | 0.9% to 2.9% a month (Flexiloan) or 1.9% to 3.9% a month (Flexiloan Lite) (its own figures) | £10k to £1m (its own figure) | Decision in as little as 24 hours (its own figure) | Ltd companies trading 12 months or more (Flexiloan), or 6 months or more (Flexiloan Lite) | Lender's site |
Source links go to the lender's own site, or to the page the figures on that row come from. Checked is the date we last checked them. Figures change, so 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. The full basis is in our methodology, linked below.
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.
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Tell us what you need in 2 minutes. FundBiz is not a lender and does not run a credit check. It's free and there's no obligation. 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).