Construction Asset Finance

Specialized funding solutions for construction equipment that keep your projects moving forward

Understanding Construction Asset Finance

Construction asset finance provides specialized funding solutions designed specifically for the construction industry, enabling businesses to acquire essential equipment and machinery without large upfront capital expenditure. This type of financing recognizes the unique challenges of the construction sector, including project-based income, seasonal fluctuations, and the high cost of specialized equipment.

Whether you need excavators, dozers, cranes, or smaller specialized tools, construction asset finance offers flexible options that can be tailored to your project timelines, cash flow patterns, and equipment utilization. These solutions help construction businesses take on larger projects, complete work more efficiently, and grow without overextending their capital resources.

Common Types of Financed Construction Equipment

Earthmoving Equipment

Excavators, bulldozers, backhoes, loaders, and graders used for site preparation, foundation work, and material handling on construction sites.

Lifting Equipment

Cranes, telehandlers, forklifts, and hoists essential for vertical construction, material placement, and heavy lifting operations.

Material Handling Equipment

Dumpers, trucks, conveyor systems, and concrete mixers that facilitate the movement and processing of construction materials on site.

Road Construction Equipment

Pavers, rollers, asphalt plants, and compactors used in road construction, surfacing, and infrastructure projects.

Specialized Construction Tools

Concrete pumps, pile drivers, drilling rigs, and scaffolding systems for specialized construction applications and techniques.

Site Facilities & Support Equipment

Generators, site offices, accommodation units, and temporary utilities that support construction operations.

Construction Equipment Finance Options

Different financing structures are available to match the specific needs of construction businesses, project timelines, and equipment utilization patterns.

Hire Purchase

A popular option for construction businesses planning to use equipment long-term, with ownership transferring after the final payment.

Typical deposits range from 10-20% of the equipment value
Fixed monthly payments over terms from 2-7 years
Equipment appears on your balance sheet, allowing for capital allowance claims
Particularly suitable for core equipment that generates consistent revenue
Flexibility to refinance or upgrade at the end of the term

Finance Lease

An arrangement where you lease the equipment for most of its useful life, with the finance company retaining ownership.

Minimal initial outlay, often with lower or no deposit options
Payments may be fully tax-deductible as business expenses
End-of-term options including extending the lease or purchasing the equipment
Responsibility for maintenance and insurance falls to your business
Potential for seasonal payment structures that align with construction project cycles

Operating Lease

A shorter-term rental option ideal for project-specific equipment or machinery needed for limited periods.

Lower monthly payments as you only pay for a portion of the equipment's value
Maintenance typically included in the agreement
Flexibility to return equipment when projects complete
Potential off-balance sheet treatment under certain accounting rules
Ideal for specialized equipment needed for specific projects or shorter durations

Contract Hire

A comprehensive package including the equipment, maintenance, and sometimes operator provision for a fixed monthly fee.

Fixed monthly cost covering equipment, servicing, and maintenance
Eliminates concerns about equipment breakdown and repair costs
Allows precise budgeting for project costing and tendering
Equipment returned at the end of the contract period
Particularly valuable for complex equipment requiring specialized maintenance

Benefits of Construction Asset Finance

Preserve Working Capital

Maintain cash reserves for operations, materials, and labor costs while still accessing the equipment needed to complete projects efficiently.

Bid for Larger Projects

Access specialized equipment that allows your business to take on larger, more profitable projects and expand into new construction sectors.

Tax Efficiency

Benefit from potential tax advantages through capital allowances or by deducting lease payments as business expenses, depending on the finance structure chosen.

Seasonal Payment Options

Many construction finance packages offer flexible payment structures that align with seasonal work patterns and project-based income.

Mitigate Equipment Obsolescence

Lease options allow for equipment upgrades, ensuring your construction business always has access to the latest, most efficient machinery.

Improved Cash Flow Management

Fixed monthly payments make budgeting more predictable, helping to manage the often irregular cash flow cycles of construction businesses.

Construction Sectors Served

Our construction asset finance solutions support various sectors of the construction industry:

Residential Construction

Financing for housebuilders and residential developers, covering everything from groundworks equipment to finishing tools and site facilities.

Commercial Construction

Specialized funding for equipment used in office buildings, retail developments, and industrial facility construction, including heavy lifting and structural equipment.

Infrastructure & Civil Engineering

Finance solutions for heavy-duty equipment used in road building, bridge construction, utility installations, and other major infrastructure projects.

Specialist Contractors

Tailored funding for specialist equipment used by demolition contractors, foundation specialists, scaffolding companies, and other specialized trades.

Frequently Asked Questions

Can I finance construction equipment for a specific project only?

Yes, short-term finance options are available for project-specific equipment needs. Operating leases and contract hire arrangements can be structured around project timelines, allowing you to access specialized equipment only for the duration required. Some lenders also offer project-based finance packages with repayment structures aligned to project milestone payments.

How does seasonal work affect construction equipment finance?

Many finance providers offer seasonal payment structures specifically designed for construction businesses. These can include reduced payments during traditionally slower winter months, payment holidays, or balloon payment options. Some agreements can be structured to align higher payments with periods of higher cash flow, helping to manage the cyclical nature of construction work.

What happens if construction equipment is damaged on site?

Most finance agreements require comprehensive insurance coverage for the equipment. If damage occurs, the insurance claim process would follow standard procedures. It's important to note that you typically remain responsible for repayments even if the equipment is damaged. Some finance packages offer optional GAP insurance to cover any shortfall between the insurance payout and the outstanding finance amount in case of total loss.

Is construction equipment finance available for new businesses?

Yes, although terms may differ from those offered to established construction companies. New businesses may face higher deposits (typically 15-30%) or slightly higher interest rates. Lenders often look for industry experience among directors, secured contracts, comprehensive business plans, and sometimes personal guarantees. Some specialist lenders focus on supporting new construction businesses with tailored finance packages.

Ready to Finance Your Construction Equipment?

Speak with our construction finance specialists today and find tailored funding solutions for your next project.

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