Bridging Loans for Construction Companies
Construction companies often need to move fast on land and site opportunities. Bridging loans provide the speed to secure sites before competitors, fund deposits on new projects, or cover cash flow gaps between retention releases and new contract starts.
Unlike traditional bank lending that can take weeks or months, bridging finance can complete in days. The loan is secured against the site or other property, with a clear exit via development finance, commercial mortgage, or site sale.
Key Benefits
- Secure land and sites quickly before competitors
- Bridge cash flow gaps between project retention payments
- No monthly payments when interest is rolled up
- Can use existing property portfolio as additional security
Frequently Asked Questions
Can a construction company use a bridging loan for working capital?
Yes, if secured against property. Some construction firms use bridging loans secured against director-owned property to fund short-term working capital needs between contract payments.
What is the difference between bridging and development finance?
Bridging is short-term (typically under 18 months) and released as a lump sum. Development finance is specifically for build projects, released in stages as construction progresses, and often includes GDV lending.
Do I need to be VAT registered?
VAT registration is not a requirement for bridging loans, but construction companies are typically VAT registered. The loan amount and fees may be subject to VAT depending on the property use.
Can I exit via refinancing to a commercial mortgage?
Absolutely. This is one of the most common exit routes. Once the project is complete or stabilised, you refinance to a longer-term commercial mortgage at a lower rate.
Related Funding Options
Bridging Loans UK
Fast bridging finance for UK businesses. Loans from £50k to £25M with completion in as little as 5 days. Compare rates from 50+ lenders.
Construction & Development Finance UK
Fund property development and construction projects. Stage-released development finance for UK builders and developers.
Asset Finance for Construction
Finance plant, machinery, and construction equipment. Excavators, cranes, and specialist plant for UK construction companies.
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Learn About Our Broker NetworkCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.