{"id":43202,"date":"2024-11-07T11:04:45","date_gmt":"2024-11-07T11:04:45","guid":{"rendered":"https:\/\/swoopfunding.com\/us\/uk\/start-a-business\/construction-business\/"},"modified":"2025-10-09T19:21:54","modified_gmt":"2025-10-09T19:21:54","slug":"construction-business","status":"publish","type":"start-a-business","link":"https:\/\/swoopfunding.com\/us\/start-a-business\/construction-business\/","title":{"rendered":"Construction business"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"43202\" class=\"elementor elementor-43202\" data-elementor-post-type=\"start-a-business\">\n\t\t\t\t<div class=\"elementor-element elementor-element-5481878 e-flex e-con-boxed e-con e-parent\" data-id=\"5481878\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4e5b85b elementor-widget elementor-widget-text-editor\" data-id=\"4e5b85b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">The UK\u2019s demand for new homes, commercial buildings and infrastructure upgrades is higher than ever \u2013 which is good news for anyone who wants to start a construction business. But how do you begin? What are the essential actions to take and the common mistakes to avoid? Read on to find out more.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7ed6bcf elementor-align-center elementor-widget elementor-widget-button\" data-id=\"7ed6bcf\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-md\" href=\"https:\/\/us.swoopfunding.ca\/stage\" target=\"_blank\" rel=\"noopener\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Get a quote<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-9940be4 e-con-full e-flex e-con e-child\" data-id=\"9940be4\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-d3c634a elementor-widget elementor-widget-spacer\" data-id=\"d3c634a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4bf6f45 question elementor-widget elementor-widget-heading\" data-id=\"4bf6f45\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Start a construction business: Step by step<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-923dde4 answer elementor-widget elementor-widget-text-editor\" data-id=\"923dde4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Starting a construction business requires strategic planning, industry knowledge, and a strong foundation in legal and financial aspects. From obtaining necessary licences, to hiring skilled labour, sourcing reliable suppliers and acquiring essential equipment, entrepreneurs need to overcome many hurdles to establish a reputable construction company.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1009c19 question elementor-widget elementor-widget-heading\" data-id=\"1009c19\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">1) What area of construction will you focus on?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-64a3f3c answer elementor-widget elementor-widget-text-editor\" data-id=\"64a3f3c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">The UK construction industry is deep and varied, with most construction companies concentrating on a specific sector or a niche within a sector. Before you begin to build your business, do your homework to determine which area of the industry will work best for you.<\/span><\/p><p><span style=\"font-weight: 400;\">Common construction sectors include:\u00a0\u00a0<\/span><\/p><h3><b>Residential buildings<\/b><\/h3><p><span style=\"font-weight: 400;\">This means homes for people to live in \u2013 usually houses or apartment blocks. Large scale developers often build clusters of houses or estates, sometimes with hundreds or even a few thousand homes incorporated into the project. Small to medium-sized construction companies will typically build just a few homes at a time, or even one home at a time, as the resources to build large numbers of dwellings simultaneously will be beyond their scope of operation.\u00a0<\/span><\/p><p><b>Top tip:<\/b><span style=\"font-weight: 400;\"> The UK Government has committed to a plan to build <\/span><a href=\"https:\/\/www.environmentenergyleader.com\/stories\/uks-15-million-home-goal-requires-450000-new-builds-by-2029,51739\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">1.5 million new homes<\/span><\/a><span style=\"font-weight: 400;\"> by 2029. This may create fresh opportunities for new residential construction businesses.<\/span><\/p><h3><b>Infrastructure<\/b><\/h3><p><span style=\"font-weight: 400;\">Infrastructure projects include roadways, railways, bridges, utility plants, communication systems and transport and logistics hubs. Many of these projects are controlled by local or central government \u2013 clients that typically prefer to work with a small portfolio of vetted and proven suppliers &#8211; so it may be difficult for a new and growing construction business to secure such a project. However, you may be able to secure part of a project as a sub-contractor, for instance, building storage sheds within a new port facility.<\/span><\/p><p><b>Top tip:<\/b><span style=\"font-weight: 400;\"> You can search for government and public construction projects available for tender on government sites such as <\/span><a href=\"https:\/\/www.contractsfinder.service.gov.uk\/Search\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">contract finder<\/span><\/a><span style=\"font-weight: 400;\"> or on various commercial platforms.\u00a0<\/span><\/p><h3><b>Industrial and Commercial<\/b><\/h3><p><span style=\"font-weight: 400;\">This means business property \u2013 factories, warehouses, shops, office blocks, etc. The size and value of construction projects within this sector can vary enormously, from building a complete factory to refurbishing a small high-street shop. As a new business, you\u2019ll focus on smaller projects to begin with, perhaps subcontracting work from large developers or by soliciting businesses that are seeking to expand or upgrade their facilities. If your <\/span><a href=\"https:\/\/swoopfunding.com\/uk\/sectors\/construction-loans-and-finance\/\"><span style=\"font-weight: 400;\">financial resources<\/span><\/a><span style=\"font-weight: 400;\"> are large enough, you could also buy land to construct industrial and commercial properties on spec.\u00a0\u00a0<\/span><\/p><h3><b>Identifying your niche<\/b><\/h3><p><span style=\"font-weight: 400;\">As said above, identifying your niche is essential before you begin to build your business. Different areas of the industry will require different marketing and financing strategies as well as placing different demands on your resources. Ideally, you should select a niche where you have previous experience or where you have contacts that may give you access to new projects. Gaining a reputation for value, knowledge and quality within your chosen niche is key to success.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3666588 question elementor-widget elementor-widget-heading\" data-id=\"3666588\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">2) Research your local market<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-faab3d5 answer elementor-widget elementor-widget-text-editor\" data-id=\"faab3d5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Most small to medium-sized construction companies work within their local market, preferring to leave the national projects to the major players. You\u2019ll need to learn where demand is, what is happening within the industry in your local area and discover the resources you\u2019ll need to make your business tick. Things to look out for include:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Who are your competitors? What type of projects do they deliver? Is there scope for a new business \u2013 your business \u2013 to capture some of those projects?<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you\u2019re building new homes, are there sufficient customers in your area? What can they afford? Would it make sense to build first-time buyer flats or to build houses for higher income buyers?<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What is the spare capacity of skilled labour in your area? Can you secure the workers you\u2019ll need and what will they cost?<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What advance planning for major projects is there? This means business parks, freeports, train stations (HS2) etc &#8211; projects that will have\u00a0 a knock-on effect in demand for homes, warehousing, retail units and more.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How active is the local refurbishment and home conversion market? Could you build a business renovating old houses or turning larger properties into flats?<\/span><\/li><\/ul><h3><b>How to do construction market research<\/b><\/h3><p><span style=\"font-weight: 400;\">There are many ways to conduct marketing research:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Google search<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Construction industry reports<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Builder\u2019s websites<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Commercial directories<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Industry magazines<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Government reports<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Historical data and bids<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Proposed projects coming into the area<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">Customer feedback is also a good way to learn more about your local customer base. Surveys, questionnaires, focus groups or face-to-face interviews can tell you how often they\u2019ve used a builder.<\/span><\/p><p><span style=\"font-weight: 400;\">What were their biggest issues with the building process? What is the most important factor that makes them a happy customer?<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-82bb689 question elementor-widget elementor-widget-heading\" data-id=\"82bb689\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">3) Draft a business plan<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a5a369b answer elementor-widget elementor-widget-text-editor\" data-id=\"a5a369b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">If you\u2019re seeking external investment or a commercial <\/span><a href=\"https:\/\/swoopfunding.com\/uk\/business-loans\/\"><span style=\"font-weight: 400;\">business loan<\/span><\/a><span style=\"font-weight: 400;\"> to start your construction business, you\u2019ll need a detailed business plan to support your pitch or application. Investors and lenders will want to know why you need their funds and what the money will do for your new organisation. Business plans should do more than paint a rosy picture \u2013 explain the risks involved, what the downsides could be &#8211; and how you intend to overcome them.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Your plan should detail the following important information:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your business and management structure<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The services you\u2019ll provide<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What kind of projects you\u2019ll bid on<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your target market \u2013 who are your key customers<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your marketing plan<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Number of employees\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Estimated startup costs\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Estimated income for your first year and the KPI\u2019s you need to achieve to reach it<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Whether you will be a cash or\u00a0accrual business and what your billing terms are<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Who your lending sources are<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">Even if you don\u2019t need investment or a loan, a business plan can still be a very useful vital tool. Use it as your business manual, referring to the contents to guide your strategy and manage your financials.<\/span><\/p><p><span style=\"font-weight: 400;\">Find out more about creating your business plan <\/span><a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/business-plan\/\"><span style=\"font-weight: 400;\">here.<\/span><\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0795b44 question elementor-widget elementor-widget-heading\" data-id=\"0795b44\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">4) Register your business<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c39ce4c answer elementor-widget elementor-widget-text-editor\" data-id=\"c39ce4c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">You\u2019ll need to <\/span><a href=\"https:\/\/www.gov.uk\/limited-company-formation\/register-your-company\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">register your business<\/span><\/a><span style=\"font-weight: 400;\"> and apply for <\/span><a href=\"https:\/\/www.gov.uk\/register-for-vat\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">VAT registration<\/span><\/a><span style=\"font-weight: 400;\"> with HMRC. You may also need special permits and licences depending on the type of work you\u2019ll carry out.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-65260d4 question elementor-widget elementor-widget-heading\" data-id=\"65260d4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">5) Buy insurance<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-582b1df answer elementor-widget elementor-widget-text-editor\" data-id=\"582b1df\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">The construction industry is risky, and accidents and loss are common. You\u2019ll need to protect yourself, your workers and your business with adequate <\/span><a href=\"https:\/\/swoopfunding.com\/uk\/business-insurance\/construction-company-insurance\/\"><span style=\"font-weight: 400;\">business insurance<\/span><\/a><span style=\"font-weight: 400;\">. Here are the key policies you\u2019ll need:\u00a0<\/span><\/p><h3><b><\/b><b>Employers liability<\/b><\/h3><p><span style=\"font-weight: 400;\">Under the Employers Liability Act of 1969, <\/span><a href=\"https:\/\/swoopfunding.com\/uk\/business-insurance\/employers-liability-insurance\/what-is-employers-liability-insurance\/\"><span style=\"font-weight: 400;\">employers\u2019 liability insurance<\/span><\/a><span style=\"font-weight: 400;\"> (ELI) is a legal requirement for most UK employers. ELI protects you and your employees, (including those who no longer work for you), should they be injured or become unwell as a result of working for your business. ELI typically covers the associated legal and compensation costs, and other damages of such events, but it can also cover accidental injury or damages caused by an employee to a third party, like your customers.<\/span><\/p><p><b>Important Note: <\/b><span style=\"font-weight: 400;\">Employers liability insurance is <\/span><b>mandatory <\/b><b>by law<\/b><span style=\"font-weight: 400;\"> for almost all employers. <\/span><span style=\"font-weight: 400;\">Your policy must cover you for at least \u00a35 million and come from an authorised insurer. Your business can be fined up to \u00a32,500 for every day you are not properly insured.<\/span><\/p><h3><b>Public liability<\/b><\/h3><p><a href=\"https:\/\/swoopfunding.com\/uk\/business-insurance\/public-liability-insurance\/do-i-need-public-liability-insurance\/\"><span style=\"font-weight: 400;\">Public liability insurance<\/span><\/a><span style=\"font-weight: 400;\"> protects your business if someone is injured, or their property is damaged because of the services that you or your business provides. This type of cover, also known as PL or liability insurance, is designed to protect your business against third party claims for injuries or property damage from a customer or client, passer-by, or a visitor to your business premises \u2013 whether you\u2019re at fault or not.<\/span><\/p><h3><b>Tool insurance<\/b><\/h3><p><a href=\"https:\/\/swoopfunding.com\/uk\/business-insurance\/tool-insurance\/\"><span style=\"font-weight: 400;\">Tool insurance<\/span><\/a><span style=\"font-weight: 400;\">, also known as portable equipment cover, protects the machinery and equipment you take from job to job. This includes things like hand and machine tools, generators, lighting rigs, tech devices, ladders, and testing equipment. The portable nature of these essential items makes them more prone to loss, theft, damage, and accident, and their replacement can often be expensive.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6d123ea question elementor-widget elementor-widget-heading\" data-id=\"6d123ea\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">6) Obtain funding<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b1081f0 answer elementor-widget elementor-widget-text-editor\" data-id=\"b1081f0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Even if you\u2019re starting off very small, you\u2019ll probably need funding to make your business grow and to meet the high cash flow pressures of the UK construction industry. You can look for funding from investors or friends and family, or you can seek a low-cost small <\/span><a href=\"https:\/\/swoopfunding.com\/uk\/business-loans\/small-business-loans\/\"><span style=\"font-weight: 400;\">business loan<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">It is important to understand that business loans are often custom deals, shaped to fit your business, which means no two loan deals look alike. It can also be challenging to get a loan when your business is very new. This means you\u2019ll need to shop around to find a lender who can help. You can do this by approaching banks and online lenders one by one over weeks or even months, or you can use the services of a <\/span><a href=\"https:\/\/swoopfunding.com\/uk\/business-loans\/apply-now\/\"><span style=\"font-weight: 400;\">loan marketplace<\/span><\/a><span style=\"font-weight: 400;\"> that will immediately introduce you to a choice of business loans from a\u00a0 range of lenders. Some marketplace platforms can also give you advice and help you with the application process. This can be especially useful for borrowers who have never taken out a business loan before.<\/span><\/p><h3><b>Popular business loans for construction companies:<\/b><b><\/b><\/h3><ul><li aria-level=\"1\"><a href=\"https:\/\/swoopfunding.com\/uk\/business-loans\/term-loans\/\"><span style=\"font-weight: 400;\">Term loan:<\/span><\/a><span style=\"font-weight: 400;\"> This is a lump sum that you pay back over time. Borrow up to \u00a35million over as long as 25 years. Collateral may be required.<\/span><\/li><li aria-level=\"1\"><a href=\"https:\/\/swoopfunding.com\/uk\/business-loans\/revolving-credit-facility\/\"><span style=\"font-weight: 400;\">Business line of credit:<\/span><\/a><span style=\"font-weight: 400;\"> Also known as a revolving credit facility, this is a loan that functions like a high-value credit card. Withdraw cash anytime up to the maximum of your credit limit. You only pay interest on the sum you withdraw, not the whole line. This can significantly reduce your borrowing costs. Collateral may be required.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/swoopfunding.com\/business-loans\/asset-finance\/heavy-equipment-finance\/\"><span style=\"font-weight: 400;\">Equipment finance:<\/span><\/a><span style=\"font-weight: 400;\"> An equipment loan or lease can help you buy the expensive construction equipment you need. Use the machinery as you pay for it. With a loan you\u2019ll own the machinery outright at the end of the contract. With a lease , which is a long-term rental agreement, you may have the option to buy the equipment for a peppercorn sum or the residual value of the machinery when the contract ends. No collateral required.<\/span><\/li><li aria-level=\"1\"><a href=\"https:\/\/swoopfunding.com\/uk\/business-loans\/invoice-finance\/\"><span style=\"font-weight: 400;\">Invoice finance:<\/span><\/a><span style=\"font-weight: 400;\"> Also known as account receivables financing, this type of loan allows you to borrow against the value of your unpaid invoices and it can be a solid option for construction businesses that lack other forms of collateral. Instead of waiting 30, 60, or 90 days or more to get paid, the lender may provide up to 95% of your invoice value within a few days or even hours of the bill being raised. Your invoices act as security for the loan, no added collateral is required.<\/span><\/li><li aria-level=\"1\"><a href=\"https:\/\/swoopfunding.com\/uk\/sectors\/construction-loans-and-finance\/\"><span>Construction loan:<\/span><\/a><span> Use a construction loan to cover the cost or new-builds or the redevelopment or refurbishment of an existing property.<\/span><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e189b87 question elementor-widget elementor-widget-heading\" data-id=\"e189b87\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How Swoop can help<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-be966bd answer elementor-widget elementor-widget-text-editor\" data-id=\"be966bd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">No matter if you\u2019re seeking a low-cost business loan or comprehensive insurance to protect your construction business, working with experts can make all the difference when applying for funding or buying a new policy. Contact Swoop to discuss your borrowing and insurance needs and to compare high quality business loans and insurance from a choice of providers. Get your new construction business firmly off the ground. <a href=\"https:\/\/us.swoopfunding.ca\/stage\" target=\"_blank\" rel=\"noopener\">Register with Swoop today.<\/a><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"author":26,"featured_media":0,"parent":0,"template":"","start-a-business-sectors":[347],"class_list":["post-43202","start-a-business","type-start-a-business","status-publish","hentry","start-a-business-sectors-business-ideas"],"acf":[],"featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","image_blog":"","image_blog_full":"","image_podcast":"","image_banking":"","image_blog_internal":"","image_blog_medium":"","image_single_banking":""},"post_excerpt_stackable_v2":"<p>The UK\u2019s demand for new homes, commercial buildings and infrastructure upgrades is higher than ever \u2013 which is good news for anyone who wants to start a construction business. But how do you begin? What are the essential actions to take and the common mistakes to avoid? Read on to find out more. Get a quote Start a construction business: Step by step Starting a construction business requires strategic planning, industry knowledge, and a strong foundation in legal and financial aspects. From obtaining necessary licences, to hiring skilled labour, sourcing reliable suppliers and acquiring essential equipment, entrepreneurs need to overcome&hellip;<\/p>\n","category_list_v2":"","author_info_v2":{"name":"Chris Godfrey","url":"https:\/\/swoopfunding.com\/us\/author\/chris-godfrey\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/start-a-business\/43202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/start-a-business"}],"about":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/types\/start-a-business"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/users\/26"}],"version-history":[{"count":10,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/start-a-business\/43202\/revisions"}],"predecessor-version":[{"id":43439,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/start-a-business\/43202\/revisions\/43439"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/media?parent=43202"}],"wp:term":[{"taxonomy":"start-a-business-sectors","embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/start-a-business-sectors?post=43202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}