Sector x finance type

Secured Business Loan for Construction — UK eligibility guide

Sector-specific underwriting context layered on top of the base construction sector page and the base secured business loan guide.

Eligibility guidance only - not financial advice, not a loan offer, not a guarantee of approval. Lendrly is not FCA-authorised and is not a credit broker.

In short

Secured Business Loan for UK construction businesses combines a sector pattern Lendrly tracks closely with a finance type that has its own underwriting shape. Established SMEs and lower-mid-market businesses borrowing £250k+. In the construction sector specifically, the lenders that tend to fit are ones already comfortable with the construction cash cycle, asset profile and customer mix. Typical amounts sit at £250k to several million; some specialists fund £5m+. and decisions usually land within typically 4-12 weeks including valuations and legal work. Final eligibility, pricing and limits are set by the lender at underwriting and depend on the full trading picture.

What underwriters in the construction sector typically watch for

The list below is specific to UK construction businesses seeking secured business loan — distinct from the generic blockers for either the sector or the product on its own.

Most small contractors below £1m turnover sit outside typical secured-lending ticket sizes — secured facilities tend to kick in around £250k-£500k minimum.
Limited tangible security beyond the yard and the plant fleet makes the secured pool smaller than for property-rich sectors.
Cyclical EBITDA volatility shows in the affordability stress test and can pull the secured limit down even where headline turnover is strong.
Concentration on one main contractor reduces secured-loan appetite just as it reduces invoice-finance advance rates.

Documents that help in construction secured business loan applications

Lenders ask for slightly different documents depending on the sector. Expect to provide most of the following when applying for secured business loan as a construction business.

Last 3 years of filed accounts plus current-year management accounts.
Asset register listing plant, vehicles and yards with valuation evidence.
Director asset-and-liability statement for the personal guarantee.
Last 6 months of business bank statements showing affordability.

Timing the application

Secured-loan underwriting for construction typically takes 6-10 weeks. Operators usually time the application to land funds ahead of a known project mobilisation rather than into a quiet winter month.

Worked example

An established M&E contractor with £4m turnover, £450k EBITDA and £900k of unencumbered plant might pre-qualify for a secured term loan in the £400-800k range from ThinCats, a high-street bank or a specialist mid-market lender. Pricing typically sits in the high single digits to low teens APR-equivalent over 3-5 years, secured against plant and a debenture. Final terms are subject to full underwriting.

Illustrative only. Final amounts, pricing and structure are set by the lender at underwriting.

Practical lender tips for construction secured business loan

Secured lenders comfortable with construction often pair the term loan with an invoice finance facility — running both with the same lender can ease covenants.
Refinancing existing plant into the secured facility releases working capital and consolidates the affordability picture.

Frequently asked questions

Is secured business loan typically a good fit for UK construction businesses?

Secured Business Loan can fit construction businesses where the underwriting picture matches the lender's published criteria. Sector-specific blockers, documents and timing all matter. Use the eligibility checker to map your profile against multiple finance types — Lendrly does not submit applications and does not arrange finance.

Can a construction firm use invoice finance?

Yes, but the lender pool is narrower than for general B2B. Look for providers with explicit construction experience — Bibby, Skipton Business Finance and Time Finance are commonly cited. Expect lower advance rates than non-construction sectors because of retentions and pay-when-paid clauses.

What asset finance is available for construction plant?

Hire purchase and lease arrangements cover excavators, diggers, dumpers, scaffolding, telehandlers, generators and commercial vehicles. New and used plant is fundable. Specialist asset finance providers underwrite the residual value of the kit.

What can be used as security for a secured business loan?

Common options include commercial property, residential property owned by the business or director, debenture over company assets, specific charges over machinery, and in some cases inventory or receivables. The right structure depends on what the lender can realise and what the business can offer.

Are secured business loans cheaper than unsecured loans?

Usually yes. Because the lender's downside is partly covered by the security, pricing is typically lower than an equivalent unsecured loan. The flip side is longer arrangement timelines and upfront valuation and legal costs.