Construction finance: What do you need to know?

What is construction finance?

Construction finance provides the opportunity for businesses to invest in new projects or equipment while managing cash flow effectively. It also offers opportunities to refinance existing agreements or spread the cost of purchases over time. A variety of financial solutions are available, including unsecured business loans, asset finance, hire purchase, and asset refinance.

At MAF Finance Group, our dedicated team of construction finance specialists work with clients across the industry to arrange the most suitable funding for their specific needs.

Through our construction finance solutions, we can help fund a diverse range of assets, including excavators, cranes, scaffolding, and heavy construction machinery, ensuring your business has the equipment to build, develop, and grow.

What type of finance is available with Construction finance?

Hire Purchase: This finance facility allows construction businesses to spread the cost of an asset over a pre-determined period. Once the deposit is paid, a set of monthly instalments are made over the course of the finance agreement. When all payments have been made, you will become the owner of the asset.

Asset Refinance: Refinancing leverages the value in owned assets to inject capital into your business. With this finance solution, you can use it to cover day-to-day business expenses, fund new purchases, take on growth objectives, and consolidate existing finance agreements. Throughout the finance agreement, you still have operational use of the asset(s) being refinanced.

Finance Lease: With a finance lease, you rent the asset over an arranged period, while remaining responsible for maintenance. You will fund the total cost of the asset, and at the end of the term, you will either hand back the asset, have the option to extend the lease, or request that the asset is to be sold at a fair market rate.

Unsecured Business Loan: An unsecured loan allows businesses to secure funding without having to use assets as collateral. This loan type is approved based on the business’ creditworthiness, ideal for asset light businesses, or those who do not want to use their business’ assets as collateral. As well as this, there are no early repayment fees if you decide to settle the loan ahead of time.

What assets can be financed through Construction finance?

Excavator finance: Excavators are key to many construction and groundwork projects. Whether you’re upgrading your current fleet or expanding into new contracts, we can arrange tailored finance for crawlers, backhoes, or suction excavators, helping you manage costs while maintaining productivity.

Crane finance: From tower cranes used on high-rise developments to mobile or rail-mounted cranes for site lifting and logistics, our crane finance options make it easier to acquire the equipment your business needs without tying up capital.

Bulldozer finance: A bulldozer is often one of the most prevalent assets on construction sites, ideal for grading, earthmoving, and site preparation. With our finance solutions, you can spread the cost of new or used bulldozers, ensuring your operations continue without financial strain.

Dump truck finance: Essential for moving heavy loads safely and efficiently, dump trucks play a vital role across construction, agriculture, and quarrying. We offer finance to help you purchase or replace these high-value vehicles, keeping your projects on schedule.

Access platform finance: From powered lifts to mobile towers, access platforms provide safe and reliable height access for maintenance, installation, or construction work. Our finance options cover a wide range of platform types, allowing you to invest in the right equipment for your team’s needs.

Scaffolding finance: Scaffolding forms the foundation of site safety and accessibility. Whether you’re expanding or replacing aging systems, we can offer flexible scaffolding finance to help you manage payments while maintaining efficient operations.

How do I secure Construction finance?

If you are interested in securing construction finance, ensuring a consistent and strong financial profile will improve your chances of approval. Make sure you provide a detailed business plan, stating how you plan to use the funding and how you will repay. Demonstrating revenue growth as well is important, ensuring lenders feel confident in your ability to repay.

As well as this, having consistent cash flow will make your application more appealing, again reassuring lenders you will be able to repay without straining business capital.

Benefits of Construction finance

• Boost to cash flow
• Consolidate existing finance agreements
• Secure new assets for your business
• Wide selection of finance facilities available
• Tailored repayment terms
• Optimise efficiency
• Release funds through refinancing
• Stability for seasonal fluctuations

Applying for Construction finance

MAF Finance Group can compare offerings from a wide range of banks and funders to ensure you receive a finance facility tailored to your needs.

To gain more information or to get a quote, simply fill out the form below. If you would like to speak to us directly, you can call us on 0115 958 6872, and a member of our team will be happy to speak to you.