How do construction business loans work?
Wednesday 27th August 2025
Last updated: 28th October 2025
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Cash flow challenge: My construction projects need upfront funding for labour, equipment, and materials, but clients often take months to pay invoices, leaving me short on cash.
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Perfect for: Construction firms, contractors, and developers needing flexible funding to cover upfront costs and manage long payment cycles.
Novuna helps construction businesses access loans and funding solutions designed to bridge cash flow gaps. We compare providers, guide you through the application, and ensure you get the right deal for your needs.
Why construction businesses need loans
Construction projects often require significant upfront investment in staff, machinery, and raw materials. With long payment terms and staged client payments, loans can keep projects moving without putting pressure on working capital.
Types of construction business loans
Working capital loans
Cover everyday business costs like payroll and supplier invoices while waiting for client payments.
Equipment finance
Spread the cost of machinery or vehicles over time instead of paying upfront.
Project finance
Provides funding for large-scale developments or multiple concurrent projects.
Invoice finance
Releases cash tied up in unpaid invoices, helping you cover expenses without waiting for clients to pay.
Bridging loans
Short-term finance to cover immediate costs while waiting for longer-term funding or client payments.
How to qualify for construction business loans
- Maintain up-to-date financial records
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Provide clear cash flow forecasts
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Show evidence of existing or upcoming contracts
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Build a strong credit history to improve approval chances
How Novuna Business Cash Flow helps
Novuna has decades of experience supporting construction businesses with tailored finance. Whether you need working capital for day-to-day operations or loans to fund major projects, we’ll connect you with the right lender to keep your business building with confidence.
