Everything You Need To Know
The UK Construction Industry Running A Construction Company
The UK construction industry is growing at a rapid rate and is so diverse that it currently provides 10% of all of the UK’s employment opportunities - that’s over 3 million jobs! As an entrepreneur in the field there’s a lot of scope for your new business. You can start up a business that involves forestry, infrastructure development, mining, and quarrying, maintenance, and more.
There’s no doubt that business opportunities in the construction industry are lucrative, especially when you consider that the current construction output in the UK is over £110 billion per annum. This means that the UK construction sector contributes as much as 7% of the country’s GDP.
According to Designing Buildings statistics there are 3 main sectors that an entrepreneur can operate a business in within the construction sector. These are:
- Infrastructure development – which accounts for 15% of the industry
- Commercial and social construction – which accounts for 45% of the industry
- Residential construction – which accounts for 40% of the industry
The biggest challenges that construction entrepreneurs are faced with are; deciding which main sector they will operate in, and getting the finance to get their new business off the ground (or grow their existing small business).
It seems as if the construction sector always has opportunities for income earning, especially when you note that 60% of construction jobs in the UK are new builds, while 40% is allotted to maintenance and refurbishment. It seems that a construction pro’s work is never really done – and that means good news for profits and of course, job creation. You just have to read the fact sheet provided by Statista on the construction industry for 2017 and 2018, to see that the sector is expanding and has a lot to offer entrepreneurs.
Construction start-ups are faced with high costs for equipment, premises, staff training, and of course, marketing. As a result, High Street bank loans are not always easy to acquire, especially if the applicant has a less than perfect credit score.
Construction Finance Construction Business Loans
Are you looking for funding to start your own construction company or grow your existing business in the construction sector? SME Loans offers alternative funding options to entrepreneurs in the construction field. If you are searching for loans to cover construction equipment costs, business expansion or simply to increase your business’ cash flow - then you have come to the right place.
We help construction businesses acquire the funds they need to establish and grow in the already competitive, saturated UK construction market.
Entrepreneurs in the construction sector have various funding options available to them. Not all of the commonly recommended funding options will suit every construction business owner. It’s important to do your research and think carefully about which construction finance product will align with your business best. In this section we’ll walk you through a couple of your options.
- High Street Bank Loans for Construction Businesses
It can be quite challenging for an entrepreneur in the construction sector to get construction finance, especially from traditional High Street banks. High Street banks work according to a strict set of criteria and rules and as a result their loan approval rate is not very high. In comparison to alternative funding lenders, the required criteria can be difficult for startup entrepreneurs to meet. The biggest disadvantage of a bank loan is that the loans are typically secured, meaning collateral is required so you risk losing valuable business assets if your construction company defaults on payments. It’s important to note that credit rating is a major determining factor in the loan application outcome.
- Construction Equipment Finance Agreements & Leasing
If you are considering construction equipment finance agreements or equipment “leasing” then do so cautiously. With this type of funding, you almost “rent” your equipment for a certain period of time, until the agreed-on amount has been paid off in full. Thereafter, the equipment belongs to your business. Unfortunately, if you miss payments, you will lose all the money you have already paid towards the main debt, as well as the equipment. The risk is quite high for entrepreneurs of businesses in their early stages.
Just because High Street bank loans are hard to obtain and equipment leasing is risky, it doesn’t mean that you’re out of options! If you dream of running your own construction business or wish to grow/expand your existing business, you can get an unsecured business loan with SME Loans. In the event that you have a less than perfect credit score, we invite you to apply for a bad credit loan with us.
- Small Unsecured Business Loans for Construction Companies
An unsecured business loan is a great alternative funding option for businesses in construction. For starters, this is not a traditional bank loan, which means that you won’t be tied to the strict rules and limitations often imposed by High Street banks. As well as this, the approval of such a loan doesn’t rest solely on the collateral that you have to offer, or on your credit score alone. This type of loan is designed to help you get your great construction business idea off the ground or help to grow your existing business to new heights.
When you apply for construction business loans with SME Loans, you can expect to receive the desired amount of money in full upfront. You are then expected to pay the money back in monthly repayments at a pre-agreed interest rate. We provide loan amounts up to £500,000 with flexible repayment terms over 1 to 5 years.
You may already have a profitable construction business that is expanding but find yourself halted by insufficient funding. In this case a business expansion loan is one to consider. With these loans, you can scale up your business to boost profit potential. IN order to apply for a construction business expansion loan, you must have a business that is already operating with an established customer base
Apply For Construction Company Loans SME Loans Application Process
With the construction sector booming in the UK, there is no time like the present to get your construction business plans going! Whether you are a growing startup or interested in expanding your already well established business, SME Loans can assist.
Am I Eligible For Construction Finance?
Your construction business can obtain a business loan if it meets the following criteria:
- You are 18 years of age or older at the time of application.
- Your business is legally registered and trading in the UK.
- Your business has been active for 6 months or longer.
- Your monthly turnover is £5,000 or more.
To apply for a construction company loan, follow these simple steps:
Click to apply on the loan application page. Supply us with the following details:
- Your registered business name and the name that your construction business trades under (if it is different to the registered name)
- How many months / years your business has been in operation
- Monthly turnover amount
- Required loan amount
After filling in your business details, you will be asked to provide:
- Your full name and surname
- The position that you hold within the business
- Full contact details
Before the loan can be granted, you will need to agree to the terms and conditions. Once you have done so, click on “get my quote”. Thereafter, your application will be submitted for review by one of our approved finance suppliers.
When your application has been approved, an account manager will get in touch with you to discuss your loan.
The terms and conditions of the loan agreement must be thoroughly read through and understood. The agreement should only be signed once this is done. When both you and the lender have signed the application, the funds will be paid into your bank account within 24 hours.