Construction Finance, Placed with Lenders Who Actually Do It
The cash flow problem in construction is structural. You spend money in week one and get paid in month four. Stage payments, retention, plant costs before valuations, subcontractors chasing before your main contractor has certified. We place bridging, development finance, and working capital with lenders who read the build programme, not just the balance sheet.
£210bn
UK construction output
350,000+
SME construction firms
Retention is the one that catches firms out most often. You finish the works, you raise the invoice, and five per cent sits in the client's account for twelve months. Multiply that across three or four live contracts and you have a real cash flow hole that has nothing to do with how well the business is performing. Invoice finance against certified applications can release that cash early. On the development side, lenders release funds in tranches against architect or QS certifications, typically at 60 to 65 per cent of GDV on a residential scheme, with the remainder drawn down as each stage completes. The rate is usually rolled up into the loan, so you are not servicing interest monthly during the build. Day-one LTV is where deals fall over: if your site purchase plus build costs exceed what a lender will advance against GDV, you have to find the gap elsewhere before you approach. We have placed deals where that gap was covered by a second charge from a different lender. It is possible, but it takes structuring, and it depends on the lender's appetite for the deal in front of them.
Common Challenges in Construction
Retention eating into working capital
Five per cent held back on certified applications across multiple contracts adds up fast. It is money you have earned that you cannot touch. Invoice finance against certified applications is one way to recover it early.
Stage payments arriving after costs have been spent
Materials, labour, and plant all go out in the first weeks of a stage. The QS valuation and client certification come later. That gap is real and it grows with contract size.
Plant and equipment acquisition
Buying a telehandler or crane outright ties up six figures of working capital on a single asset. Asset finance spreads the cost over the equipment life or the contract, which fits the cash flow far better than paying cash.
Development finance gearing on first schemes
First-time developers often find the GDV limit tighter than expected. Lenders will fund 60 to 65 per cent of GDV on a straightforward residential scheme; developers with a delivered track record can push higher. Knowing which lender has appetite for your experience level before you approach saves weeks.
Finance Solutions for Construction
We work with specialist lenders to find the right product for your business.
Construction & Development Finance
Tranche-released funding drawn against QS or architect certifications. Used for new builds, conversions, and heavy refurbishments. Rate is usually rolled up, so no monthly interest payments during the build. Lenders look at GDV, build cost, and exit route.
Learn moreBridging Loans
Short-term first or second charge lending for site acquisition, auction purchases, or chain breaks. Completions from around two weeks. Interest rolled up or serviced monthly depending on lender and LTV. Exit is usually refinance to development finance or a term mortgage.
Learn moreAsset Finance
Hire purchase or finance lease for plant, machinery, and specialist vehicles. Terms from 12 to 60 months. The asset secures the borrowing, so the rate is usually better than unsecured working capital.
Learn moreInvoice Finance
Advance against certified applications for payment and unpaid invoices from main contractors. Releases cash tied up in retention and slow-paying commercial clients. Particularly useful for subcontractors with a consistent application cycle.
Learn moreCommercial Vehicle Finance
HP or lease for vans, trucks, tippers, and specialist site vehicles. Can be structured as a fleet facility or funded vehicle by vehicle as the business wins new contracts.
Learn moreWork out your numbers
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Frequently Asked Questions
Can I get development finance without a completed project on my track record?
Some lenders will consider a first scheme if the application is strong: a detailed appraisal, a credible build team with verifiable CVs, a realistic programme, and a sensible GDV. The LTV they will offer is usually lower than they would give an experienced developer, which means you need more equity in the deal. We are a broker, not a lender, so we cannot promise approval; the lender makes that call on the merits of the deal and their own appetite. What we can do is identify which lenders currently back first-time or early-stage developers and put your application in front of them properly built.
How does development finance actually release funds?
The lender appoints a monitoring surveyor, usually at your cost, who inspects the site at each draw-down point and certifies that the work claimed is complete to standard. The lender then releases the next tranche. Interest accrues on the amount drawn and is usually rolled up into the loan rather than paid monthly. At the end of the term you repay the full balance plus rolled-up interest, typically from a sale or a refinance.
Can I use asset finance for plant on a specific contract?
Yes, and it is a sensible way to structure it. HP or finance lease can be written over a term that matches the contract duration. The lender takes a charge over the asset, so rates are usually more competitive than unsecured borrowing. You will need to show the lender what the asset is, confirm it is insured, and provide three to six months of business bank statements. On straightforward equipment, decisions can come back within a few days, though it always depends on the lender and the deal.
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Whether you need working capital, equipment finance, or property funding, we can connect you with the right lender in days, not weeks.