Business finance for the construction industry

Construction businesses rely on constant reinvestment. From excavators, cranes and access platforms to vehicles, tools and site infrastructure, staying competitive means putting money into the business before you’ve been paid for the work.  

Long payment cycles, retentions and unpredictable timelines can quickly put pressure on cashflow. 

PMD structures smart business lending for the construction sector, aligning business financing to project schedules, protecting working capital, and ensuring your business has the funding headroom it needs to keep moving. 

We work with:

• Groundworks and civil engineering businesses 

• Builders and developers 

• Contractors and subcontractors 

• Plant hire businesses 

• Infrastructure and utilities companies 

• Fit out, refurbishment and specialist trades

Whether you’re funding your first job or managing multiple sites, we’ll structure finance around your workload.

Why construction businesses use finance

Construction businesses choose finance not just to buy equipment, but to keep cashflow steady across multiple jobs. Finance allows you to: 

• Spread the cost of plant and machinery instead of large upfront spend 

• Align repayments with project timelines 

• Manage gaps between invoicing and payment 

• Combine multiple facilities into one structured setup 

• Access a wider range of lenders for better rates and terms 

What construction assets can be financed?

We can provide competitive funding packages for a range of specialist assets within the construction sector, including:   

• Excavators, dumpers, telehandlers and loaders 

• Cranes, access platforms and lifting equipment 

• Vans, site vehicles and trailers 

• Generators, tools and specialist plant 

Asset finance for construction plant and equipment

Best for: New and approved used machinery you want to own over time 

Asset finance allows you to spread the cost of high value plant and equipment while keeping cashflow steady. Instead of paying upfront, you make fixed monthly payments over an agreed term. The asset itself acts as security, which can often lead to more competitive rates than unsecured borrowing. 

Why it works well for construction businesses: 

• Enables you to fund multiple pieces of equipment at once (for example excavators, dumpers or site vehicles) 

• Helps preserve working capital for wages, materials, fuel and subcontractors 

• Works for both new and approved used plant 

• Supports businesses looking for predictable long term costs 

Asset finance is one of the most used funding methods across the construction sector. 

Hire Purchase (HP) for construction equipment

Best for: Businesses that want to own equipment at the end of the agreement 

Hire purchase is a straightforward way to acquire construction plant while spreading repayments. You usually pay a deposit (sometimes none), make monthly payments, and once the agreement ends, ownership transfers to you. 

Why HP suits construction firms: 

• Well suited to long life assets like excavators, telehandlers and heavy plant 

• Fixed repayment structure makes budgeting easier 

• Fixed rate options available 

• Builds long term asset value within the business  

HP is commonly used for core plant that delivers value over a longer period.

Lease finance for construction equipment

Best for: Flexibility, lower upfront costs or regularly upgrading equipment 

Leasing allows your business to use equipment without committing to ownership. You usually pay a deposit (sometimes none), make monthly payments and once the agreement ends, ownership transfers to you. 

Why leasing works for construction businesses: 

• Lower monthly costs compared to ownership options 

• Useful for specialist or short term project equipment 

• Ideal for businesses that regularly replace or upgrade plant 

• Help protect cashflow and reduce balance sheet pressure 

At the end of the lease, options may include extending, upgrading, returning equipment or restructuring the facility.

Asset refinance for construction businesses

Best for: Releasing cash from assets you already own 

If you own plant outright or have built equity in it, refinancing allows you to release that value as working capital while continuing to use the equipment. 

Many construction businesses use refinance for: 

• Funding new machinery or expanding equipment fleets 

• Managing cashflow between projects 

• Consolidating existing borrowing 

• Covering payroll, supplier and site costs 

• Improving overall liquidity 

It’s especially useful for construction businesses looking to grow without typing up any further capital.

Business loans for the construction sector

Best for: Funding needs beyond plant and equipment 

Business loans provide flexible funding for operational and growth needs that sit outside traditional asset finance. PMD can arrange both secured and unsecured loans, offering fast decisions, flexible repayment terms, competitive rates and the option to lend without securing against equipment.  

Construction businesses tend to use loans for: 

• Project mobilisation and site setup 

• Recruitment and payroll 

• Bridging cashflow gaps between application 

• Tax, VAT and material costs 

• Expansion into new areas or contracts 

It supports ongoing cashflow and helps cover running costs while projects are still being paid for.

Invoice finance for construction businesses

Best for: Long payment terms and delayed income 

Invoice financing allows you to access cash tied up in unpaid invoices, rather than waiting 30, 60 or 90 days to get paid. 

It’s well suited to: 

• Contractors waiting for payment from main contractors 

• Subcontractors working on staged or milestone payments 

• Businesses operating on 30-90+ day terms 

It supports ongoing cashflow and helps cover running costs while projects are still being paid for. Options include invoice factoring and invoice discounting, depending on how you manage your sales ledger.

Structured finance and asset based lending for the construction sector

Best for: Larger or growing construction businesses. 

Structured finance combines machinery, vehicles, invoices and sometimes property into a single asset based lending facility. It’s frequently used for: 

• Expansion and acquisitions 

• Multi site operations 

• Management buy outs or succession planning 

• Complex funding requirements 

It allows finance to be aligned closely with project timelines and expected income. 

Property and commercial finance for construction businesses

Best for: Depots, yards, offices and long term investments. 

As construction businesses grow, equipment is usually only part of the picture. You may also require commercial mortgage or commercial real estate funding for: 

• Yards, warehouses and depots 

• Offices and mixed use premises 

• Owner occupied buildings 

• Long term infrastructure projects 

Property finance helps support long term growth without draining working capital. 

New and approved used equipment financing

We can also arrange funding for both new and approved used construction equipment. 

PMD helps business owners compare: 

• The total cost over the term 

• Leasing vs buying 

• Impact of new vs used 

• Residual values 

• VAT and tax considerations 

Whatever the asset, supplier or project, we’ll structure funding that fits how your business operates.

How it works

We keep the process simple and efficient: 

1. Tell us what you need: Equipment, funding or cashflow support 

1. Compare funding options: From bank loans to alternative lenders 

1. Application & underwriting: We package your loan application 

1. Credit approval: Funds are released or suppliers paid 

1. Make clear payments: Transparent loan repayment terms, no surprises 

Who we help

PMD supports construction businesses across the UK, including: 

• Groundworks and civil engineering 

• Builders and developers 

• Contractors and subcontractors 

• Plant hire businesses 

• Infrastructure and utilities firms 

• Fitout, refurbishment and specialist trades 

Why choose PMD for construction finance?

Construction businesses choose PMD because we combine funding expertise with real sector understanding. With us, you get: 

• Access to a broad lender panel 

• Competitive loan rates and structures 

• Fast decisions and clear communication 

• Support for limited companies, partnerships and sole traders 

Ready to fund your next project?

If you’re investing in new machinery, managing project cashflow or planning growth, we’ll structure the most effective mix of construction finance options for your business. 

Call us on 0161 633 2548, email info@pmdbusinessfinance.co.uk, or complete our online application form to get started.