Construction business loans: how contractors can quickly finance materials & labour

Summary: Contractors often face urgent cashflow gaps when materials arrive or crews need paying. UK Business Loans connects construction firms to specialist lenders and brokers who can provide fast finance options — from invoice finance and purchase order funding to short-term loans and asset finance. Complete a quick, no-obligation enquiry and receive free eligibility checks and quotes from suitable providers, typically within hours to a few days. Start with a Free Eligibility Check now: Get Quote Now.

Table of contents

• Why contractors need fast finance for materials & labour
• Fast finance options for contractors
• How to choose the quickest, most cost-effective option
• Typical timescales & cost expectations
• What lenders will ask (document checklist)
• How UK Business Loans helps
• Quick case studies (anonymised)
• FAQs
• Next steps & contact

Why contractors need fast finance for materials & labour

Construction projects are cashflow-heavy. You might win a new job that requires large upfront materials orders, face delayed client payments, or need to pay sub-contractors and labour before stage payments arrive. When cash is tied up in retentions, unpaid invoices or long supplier lead-times, projects stall — risking delays, penalty clauses and reputational damage.

Speed matters: the right finance can keep crews working and deliveries on schedule. Different products can release funds in hours, days or a few weeks depending on your circumstances.

Get a quick quote — Free Eligibility Check

Fast finance options for contractors

Short-term business loans / bridging loans

What they are: Unsecured or secured short-term loans used to cover immediate cashflow gaps. Suitable for known short-term needs such as paying suppliers or bridging to a milestone payment.

Speed: Possible funding in 24–72 hours with the fastest lenders (subject to checks and security). Amounts: commonly from £10,000 upwards. Terms often from 1 month to 12 months or slightly longer.

Use-case: A contractor needs to pay for a block delivery and wages until a client’s payment clears.

Invoice finance (factoring / discounting)

What it is: Lenders advance a large percentage of your outstanding invoices so you can access cash tied up in unpaid bills.

Speed: From same day to 48 hours once approved and invoices verified — ideal when you’re waiting on client payments. Best for contractors and subcontractors with a steady pipeline of invoices.

Use-case: Release 70–90% of invoice value to cover immediate labour and materials costs.

Merchant cash advance / revenue-based finance

What it is: Advance against future card or card-like sales. Repayments are taken as a percentage of daily card takings.

Speed: Often within 1–2 days. Cost: typically higher; suited for businesses with steady card-sales (less common for pure site-based contractors).

Asset & equipment finance

What it is: Finance or hire-purchase deals to buy or lease machinery, vehicles or tools while preserving cashflow.

Speed: 3–7 days typical; specialist lenders can arrange quicker for standard equipment. Good value if you’re financing long-lived assets rather than short-term bills.

Purchase order / supply chain finance

What it is: A lender pays your supplier directly so you don’t have to fund large material orders up front.

Speed: Can be arranged quickly (often within 48–72 hours) when the PO and supplier terms are clear. Ideal for large material purchases for a specific contract.

Overdrafts & business credit cards

What it is: Flexible short-term borrowing linked to your business bank account or cards.

Speed: Immediate access if you already have an approved facility; new facilities can take days to set up.

Contractor-specific products (payroll funding / CIS bridging)

What it is: Products designed for construction sector timing mismatches (for example CIS-related cashflow shortfalls or payroll spikes).

Speed: Varies, but specialist brokers can often produce options quickly.

Government and other low-cost routes

What it is: Government-backed schemes or local grant programmes may help on specific projects. These can be lower-cost but usually take longer and have eligibility criteria.

Compare suitable options — Get Quote Now

How to choose the quickest, most cost-effective option

Pick the right product by answering these questions first:

• How quickly do you need cash?
• How much do you need (and for how long)?
• Can you offer assets or security?
• Do you have unpaid invoices or confirmed purchase orders?
• What’s your recent turnover and trading history?

Quick guidance: if you need cash the same day, invoice finance or purchase-order finance is often the fastest. If you can offer assets, asset finance or a secured short-term loan may be cheaper. Be aware: speed often comes at a cost — instant funding typically carries higher fees or rates.

Free Eligibility Check — 2 minutes

Typical timescales & cost expectations

Typical ranges (for illustration only):

• Invoice finance: funds within 24–48 hours after approval; fees commonly 0.5–3% per advance plus arrangement/management fees.
• Short-term loans / bridging: funding in 24–72 hours; APRs vary widely — compare quotes.
• Merchant cash advance: funds in 1–2 days; effective cost usually higher than conventional loans.
• Asset finance: 3–7 days depending on asset and valuation.

Always compare multiple offers — use our free match to see real quotes for your business.

What lenders will ask (document checklist)

Prepare these to speed up approval:

• Company registration number and VAT status
• Recent management accounts and turnover figures
• Last 3–6 months’ business bank statements
• Outstanding invoices, purchase orders or signed contracts
• Details of assets (vehicles, plant) if pledging security
• Director ID and contact details
• Evidence of materials orders or supplier quotes (for PO finance)

Having these ready can reduce time-to-fund significantly.

How UK Business Loans helps

UK Business Loans is a specialist introducer that connects construction businesses with lenders and brokers who specialise in contractor finance. Our process is designed to be fast and simple:

1. Complete a short enquiry form (takes around 2 minutes).
2. We match your business to selected lenders or brokers who specialise in construction finance.
3. You receive eligibility checks and quotes — often within hours — then decide whether to proceed.

We do not lend directly. Completing the enquiry is not an application — it’s information we use to match you with the best partners for your needs. Our service is free and there’s no obligation to accept any offer. We typically organise loans from £10,000 and upwards.

Get Started — Free Eligibility Check

Related reading: if you want to explore broader options for smaller firms, see our guide to small business loans.

Quick case studies (anonymised / illustrative)

Case study 1 — Roofing contractor: Had £45,000 in unpaid invoices and two crews waiting. Matched to an invoice-finance provider; 80% of invoice value released within 24 hours. Crews paid, project stayed on schedule.

Case study 2 — Groundworks firm: Needed to place a £120,000 materials order for steel and aggregate. We matched them to a purchase-order finance specialist who paid the supplier directly; materials delivered on time and project proceeded without delay.

Frequently asked questions

How fast can I get funds?

Short answer: often within 24–72 hours depending on product and documentation. Invoice and purchase-order finance are usually the fastest; asset finance and new overdrafts can take longer.

Will applying affect my credit score?

Submitting an enquiry via UK Business Loans does not impact your credit score. Lenders or brokers may carry out credit checks later if you progress an application.

Do you lend directly?

No. We match you with specialist lenders and brokers who may supply quotes and offers directly.

What costs should I expect?

Costs vary by product and provider. Typical ranges are provided above; always ask for a full cost breakdown including fees, interest or factor charges, and any early repayment penalties.

What loan sizes can you arrange?

We typically organise finance from £10,000 upwards to match contractor requirements.

Next steps & contact

Ready to explore your options? Click to complete a short enquiry and receive a free, no-obligation eligibility check: Free Eligibility Check. After you submit, lenders/brokers we match you with will contact you by phone or email to discuss quotes and next steps.

Disclosure: UK Business Loans does not lend money or provide regulated financial advice. We act as an introducer and will share your enquiry with selected lenders and brokers who may contact you with a quote. Using this service is free and carries no obligation to proceed. Please check each provider’s terms and costs carefully.

Contact: For general enquiries call +44 20 0000 0000 or visit our contact page. Privacy policy: View privacy policy.

1. How quickly can contractors get a construction business loan or funding for materials and labour?
– Many contractors can access funds in 24–72 hours for fast products like invoice finance or purchase-order finance, while short-term loans often fund within 24–72 hours and asset finance typically takes 3–7 days depending on documentation.

2. What types of contractor finance are best for covering immediate materials and payroll costs?
– Invoice finance, purchase-order finance and short-term/bridging loans are usually best for immediate materials and labour needs, while asset finance suits buying equipment.

3. Will submitting an enquiry with UK Business Loans affect my credit score?
– No — completing our enquiry form is not an application and does not impact your credit score, though lenders may run checks later if you proceed.

4. How much can I borrow through the lenders UK Business Loans introduces?
– We typically organise business finance starting from around £10,000 and can connect you to partners offering much larger amounts depending on your needs.

5. What documents do lenders usually require to speed up approval for contractor funding?
– Lenders commonly ask for company registration, recent management accounts, 3–6 months of business bank statements, outstanding invoices or purchase orders, director ID, and details of any assets offered as security.

6. How much does it cost to use UK Business Loans and will you charge fees?
– Our service is free and no-obligation; any fees or interest relate to the lender or broker you choose and should be confirmed in the quote they provide.

7. Can I get contractor finance if my business has imperfect or bad credit?
– Yes, some specialist lenders and brokers we work with consider businesses with adverse credit, though terms and rates will vary.

8. Are the lenders and brokers UK Business Loans connects me with regulated and trustworthy?
– Yes — we only introduce you to reputable, UK-based lenders and brokers who operate under FCA guidelines and industry best practice.

9. Is invoice finance suitable for subcontractors and companies with regular invoicing cycles?
– Yes — invoice finance (factoring or discounting) is ideal for subcontractors and contractors with a steady pipeline of invoices to release 70–90% of invoice value quickly.

10. How do I get a free eligibility check and compare quotes for construction finance?
– Complete the short online enquiry (takes about two minutes) and we’ll match you with suitable lenders or brokers who typically provide free eligibility checks and quotes within hours.