Construction business loans: finance to cover mobilisation costs & prelims on new contracts
Summary: Yes — there are specialist finance options to fund mobilisation costs and preliminaries (prelims) on new construction contracts. Common routes include invoice finance (including retention release), short‑term contract/bridging finance, staged payment / work‑in‑progress facilities, asset finance for plant, and bonding or surety lines. Availability and terms depend on the contract, client strength, payment schedule and your company financials. For a fast, no‑obligation match to specialist lenders and brokers, complete a short enquiry: Get Quote Now — Free Eligibility Check.
UK Business Loans is an introducer, not a lender. We match your enquiry with lenders and brokers. This is not financial advice. All lending is subject to eligibility checks by lenders.
Need cash to start a new contract? Mobilisation and prelims are often the first outlay on a job — materials, plant delivery, site set‑up, temporary works, staff mobilisation and insurances. If your cashflow is tight you don’t have to turn work away: specialist lenders and brokers provide short‑term and contract‑linked facilities designed to bridge these costs. Get Quote Now — Free Eligibility Check.
Do lenders fund mobilisation costs and preliminaries on new construction contracts?
Short answer: Yes
Which products are used in practice? Lenders will focus on contract mechanics (client/contractor, payment cadence, retention policies), contract value and margin, and the borrower’s financial strength. Availability varies and final terms are set by the lender after review.
Common finance options to cover mobilisation & prelims
Invoice finance (factoring / discounting)
What it is: Lenders advance cash against certified invoices or payment applications. For construction, specialist schemes can release cash against interim valuations and sometimes retentions.
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
Complete Our 1-Minute Enquiry Form Now – Get a No-Obligation Quote
Why it suits mobilisation: Releases money as soon as a valuation is certified — useful where there will be early staged invoices.
Typical terms & limits: Facilities often from £10,000 upwards; fees vary with debtor risk and facility size.
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
Pros: Quick access to working capital; flexible with growing invoice book. Cons: Ongoing fees and often dependent on debtor quality.
Contract or bridging finance (short‑term bridging)
What it is: Short‑term loans designed to cover mobilisation until the first contract valuation is paid.
Why it suits mobilisation: Tailored to the contract cycle — funds can be released quickly and repaid from the first interim payment.
Typical terms: Short durations (weeks to a few months). Costs higher than long‑term lending.
Pros: Fast and purpose‑built. Cons: Higher cost; lender will want clear repayment route (often the first valuation).
Complete Our 1-Minute Enquiry Form Now – Get a No-Obligation Quote
Work‑in‑progress / staged payment facilities
What it is: Facilities that advance against certified works or payment applications rather than finished invoices.
Why it suits mobilisation: Suited to larger contractors with regular valuations — funding scales as work is certified.
Pros: Matches cashflow to contract progress. Cons: Requires strong documentation and valuation process.
Asset finance (plant & machinery)
What it is: Hire purchase or leasing to acquire plant without full cash outlay.
Why it suits mobilisation: Preserves cash for prelims by financing vans, excavators, cranes or temporary plant.
Pros: Preserves cash and often tax efficient. Cons: Repayments tied to asset life; lender takes security over equipment.
Bonds, surety & retention guarantees
What it is: Banks or insurers provide performance and tender bonds; specialist lenders can fund bond premiums or provide collateralised facilities.
Why it suits mobilisation: Many contracts require bonds at mobilisation — arranging them early avoids tender snags.
Pros: Meets contract requirements. Cons: Bond facilities may need cash collateral or other security.
Invoice/retention release & supplier finance
What it is: Retention release schemes and supply chain finance help unlock held retentions or let suppliers be paid earlier by a third party.
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
Why it suits mobilisation: Releases funds held from previous contracts or secures supplier credit to support mobilisation.
How lenders assess applications for mobilisation & prelims funding
Lenders and brokers will typically evaluate:
- Contract details: copy of the contract, client (employer) strength, procurement route, payment schedule and retention clauses
- Contract value & margin: realistic margin and cost plan
- Payment mechanics: staged payments, interim valuations, payment timing and evidence of certification
- Security: assets, personal guarantees or charges lenders may require
- Financials & historic performance: management accounts, cashflow forecasts, previous project references
- Legal & compliance checks: company history, director credit profiles, ID verification
Common documents lenders request: contract and schedules, client/contractor contact, recent management accounts (6–12 months), project cost plan, and bank statements (3–6 months).
Practical tip: prepare a concise contract pack (contract, payment schedule, expected first valuation date and forecasted cash shortfall). This speeds quotes and improves the quality of offers.
Typical costs, turnaround times and what to expect
Indicative ranges (illustrative only; subject to lender underwriting):
- Invoice finance: facility fees plus discounting or interest — costs depend on debtor risk and facility size.
- Contract/bridging finance: higher short‑term rates and arrangement fees; often structured to be repaid from first valuation.
- Asset finance: interest over the asset term; typically competitive for plant and vehicles.
Turnaround times: many brokers can give an initial eligibility view within 24–72 hours. Funding can follow in days for straightforward cases or a few weeks for complex bonds or larger facilities.
Practical points: model VAT timing, retention release timings and ensure your cashflow plan covers mobilisation until the first certified payment.
Real‑world examples
Example 1 — Civils contractor: A small civils firm won a municipal contract requiring early mobilisation but had limited cash. The firm obtained short‑term contract bridging that covered labour and materials until the first interim valuation; the loan was repaid from that valuation. Outcome: project started on time and cashflow remained stable.
Example 2 — Specialist sub‑contractor: A mechanical sub‑contractor had retentions and slow debtor payments. The company used invoice finance with a retention release add‑on to free up working capital for plant hire at mobilisation. Outcome: plant was on site when needed and the contractor met deadlines without dipping into reserves.
How UK Business Loans helps
We don’t lend. Instead, we connect construction businesses needing £10,000 and upwards with lenders and brokers who specialise in contract funding.
- Complete our short enquiry form (under two minutes).
- We match your enquiry to specialist lenders/brokers that fit your sector and contract type.
- Receive fast responses and a free eligibility check — then compare quotes and choose any lender you wish to speak with.
Benefit: save time, increase chances of a suitable match and get sector‑specific lenders who understand construction payment cycles. Free Eligibility Check — Get Quote Now
Related: if you’d like broader construction lending options, see our page on construction business loans.
What information to have ready before you apply
Help speed the process — have this ready:
- Contract copy and client/employer details
- Start date, payment milestones and anticipated first valuation date
- Contract value and expected margin
- Recent management accounts (6–12 months) and bank statements (3–6 months)
- Company registration, VAT status and director ID
- Estimated funding required for mobilisation/prelims
FAQs
Are there financing options available to cover mobilisation costs and prelims on new contracts?
Yes — specialist lenders and brokers offer short‑term contract/bridging finance, invoice finance, asset finance and bond solutions to fund mobilisation and prelims. Suitability depends on the contract terms and your company’s financials. Get a free eligibility check.
Is finance available to fund prelims and mobilisation costs for new contracts?
Yes. Options include invoice finance, staged payment facilities and short‑term bridging tailored to the contract cycle. Provide contract details for an accurate eligibility view. Free Eligibility Check.
Do finance options exist to cover prelims and mobilisation costs on new contracts?
Yes — many specialist construction lenders routinely finance mobilisation where there is a clear payment route such as certified valuations or retentions release. Match with a specialist for the best terms. Get Quote Now.
What finance options are available to fund mobilisation costs and prelims for new contracts?
Common options: invoice & retention finance, contract/bridging loans, work‑in‑progress facilities, asset finance and bonding/surety products. Each carries different costs and requirements.
Can I get finance to cover mobilisation costs and prelims for new contracts?
Often yes — start with a short enquiry and we will match you with construction specialists who can provide quotes after reviewing your contract and accounts. Get Started — Free Eligibility Check.
Next steps & final call to action
Ready to explore options? Complete our short enquiry form (under two minutes). We’ll match you to lenders and brokers who specialise in mobilisation, prelims and contract finance. Expect a response within hours during business times — no obligation.
1. What finance options exist to cover mobilisation costs and prelims on new construction contracts?
Yes — common options include invoice finance (including retention release), short‑term contract/bridging finance, work‑in‑progress (WIP) or staged payment facilities, asset finance for plant, and bonds/surety or supplier finance.
2. Can lenders fund mobilisation and prelims before the first interim valuation is paid?
Often yes, provided there is a clear repayment route such as a certified first valuation, retention release or strong client credit, subject to lender underwriting.
3. How quickly can I get mobilisation funding for a new contract?
Many brokers can give an eligibility view within 24–72 hours and straightforward facilities can fund in days, with more complex bonds or larger deals taking a few weeks.
4. How much can I borrow to cover mobilisation and prelims?
Facilities commonly start from around £10,000 upwards, with exact limits set by the lender based on contract size, margin and your company financials.
5. What documents do lenders typically require to assess mobilisation finance?
Lenders usually ask for the contract and payment schedule, client/employer details, recent management accounts (6–12 months), bank statements (3–6 months), a project cost plan and ID for directors.
6. Will submitting an enquiry through UK Business Loans affect my credit score?
No — the short enquiry is not a loan application and won’t impact your credit score; lenders may carry out checks only if you proceed.
7. Can start‑ups or businesses with imperfect credit get mobilisation or prelims finance?
Possibly — some specialist lenders and brokers work with start‑ups or adverse credit profiles if the contract mechanics, client strength or security make the deal viable.
8. How does retention release or invoice finance help with mobilisation?
Retention release and invoice finance unlock cash tied up in interim valuations, invoices or retentions so you can pay for materials, plant and labour at mobilisation.
9. Are bonds, surety lines or premium finance available to meet mobilisation requirements?
Yes — banks, insurers and specialist brokers can provide performance/tender bonds or fund bond premiums, though facilities may require collateral or security depending on risk.
10. How does UK Business Loans help me find the right mobilisation or prelims finance?
We act as an introducer — matching your short, free enquiry to specialist UK lenders and brokers who understand construction contracts so you receive fast, no‑obligation eligibility checks and quotes.