For an established UK construction company whose accounts need some explaining, EAL Holdings is a sensible first conversation: it names construction and trades as a sector it serves, an underwriter reads each case, and the first check is a soft search. NatWest suits firms that want a high street bank with a construction team, iwoca suits small firms bridging gaps between jobs, and OakNorth Bank suits larger, growing businesses.
Construction cash flow has a shape that most lenders outside the trade find odd. You buy materials and pay labour weeks before the client pays you. Stage payments arrive late, retentions sit with the client for months, and CIS deductions come off what subcontractors are paid. A firm can be profitable on paper and still short of cash on a Friday.
That is why the choice of lender matters as much as the loan itself. This guide starts with EAL Holdings, a Harrow-based lender that offers a business loan for construction companies and other established UK firms, then compares three well-known alternatives. We focus on who each one lends to and how it makes decisions, not on prices, because those depend on your own figures.
The four lenders at a glance
| Lender | What it is | Construction link | How the case is assessed | Suits |
|---|---|---|---|---|
| 1. EAL Holdings | Specialist lender to UK-registered companies | Lists Construction & Trades among its sectors | An underwriter reviews trading performance and cash flow, not just a credit score | Established firms with figures that need context |
| 2. NatWest | High street bank | Has a construction sector page and a National Sector Head for manufacturing and construction | Bank lending, with eligibility criteria and security on some products | Firms that want loans, asset finance and banking in one place |
| 3. iwoca | Online business lender | Has a landing page for construction businesses | Online application; says applying won't affect your credit score | Smaller firms covering short gaps between jobs |
| 4. OakNorth Bank | Bank focused on bespoke lending | Names construction among sectors it has supported | Looks beyond historic financials and uses forecasting tools | Larger companies with growth or acquisition plans |
Details taken from each lender's own website in October 2026. This is general information, not an offer of credit.
How we compared them
We read each lender's own pages and noted only what it says about construction businesses, who can borrow and how a decision is made. We left out interest rates, loan sizes and repayment periods on purpose. Those figures depend on your accounts, your security and your plans, and a number on a web page rarely matches the offer a builder actually receives. We also did not score or rank the lenders on reviews.
1. EAL Holdings: a human read of a lumpy year
EAL Holdings is registered in England and Wales (company number 13799741), with its registered office on Pinner Road in Harrow. It lends only to UK-registered companies and states that it does not lend to consumers. Construction & Trades is the first sector on its list, alongside retail and hospitality, property professionals, transport and logistics, and healthcare and professional services.
Its SME business finance is aimed at working capital, growth funding and refinancing for established businesses, and its enquiry form shows the SME loan is for companies trading three years or more. For a contractor, those three uses map neatly onto real situations: funding materials for a large job, taking on a second crew, or tidying up expensive short-term borrowing.
The main reason to talk to EAL first is how it decides. It says every enquiry is reviewed by an experienced underwriter, and that trading performance and cash flow drive the decision rather than a credit score alone. It does not require a perfect credit history, and adverse credit is looked at case by case. For a building firm that had a bad year after a client went bust, that matters. A scorecard sees the late payments. A person can read the story behind them.
The process has four stages: an enquiry by form or phone, a conversation with an underwriter, an indicative offer explained in plain language, and release of funds once documents are signed and conditions are met. The first check is a soft search, and a hard search happens only if you go ahead after the indicative offer. Its SME loans are secured by a personal guarantee, which it says it explains before you commit.
Typical documents are 6 to 12 months of business bank statements, recent filed or management accounts and ID for all directors. EAL also offers property-secured finance, which may interest firms that build or refurbish for themselves.
Suits: limited companies in construction and the trades with a few years behind them, whose numbers are sound but need explaining.
2. NatWest: a bank with a construction team
NatWest has a page for construction businesses and says it supports more construction businesses than any other bank. It names a National Sector Head for manufacturing and construction, which signals a team that knows the trade.
Its construction page lists fixed and variable rate loans, asset finance through its Lombard division for equipment, fleet and plant, and commercial mortgages for premises. It also points to sustainable finance for energy-efficiency projects. NatWest notes that several products are for business use only, have eligibility criteria and may need security.
Suits: firms that want their lending, plant finance and day-to-day banking with one high street bank.
3. iwoca: flexible money between jobs
iwoca has a landing page aimed at construction businesses that promotes its Flexi-Loan, a facility you draw from when you need it and repay as client payments arrive. It lists uses that any site manager will recognise: buying materials and paying labour before the first payment comes in, paying subcontractors, covering overheads and keeping staff on during quieter months.
It says applying won't affect your credit score and that repaying early or overpaying is free. The page itself does not set out eligibility rules or say whether a personal guarantee is needed, so ask before you apply.
Suits: smaller contractors who need short-term working capital that rises and falls with their jobs.
4. OakNorth Bank: tailored facilities for bigger plans
OakNorth says it works with almost any industry sector, apart from areas such as gambling, weapons or oil and gas, and names construction among the sectors it has supported. Its facilities include working capital, acquisitions and management buyouts, and it describes "umbrella" facilities where one loan covers several activities over a project's life.
It says it is not limited to historic financials, uses forecasting tools to understand growth, and does not require you to move your business banking to it. For larger loans, borrowers may be invited to meet its Credit Committee.
Suits: larger construction groups planning an acquisition or a major step up in capacity.
What a construction lender will want to understand
Whichever lender you approach, the conversation goes better if you explain the parts of your business that look strange from outside. Three points come up again and again.
Your payment cycle
Show how long you wait between starting a job and being paid. If you work on public sector projects, GOV.UK's prompt payment policy says public buyers must include 30-day payment terms in contracts and pass that down the supply chain. If your private clients pay more slowly, say so and show the evidence.
CIS deductions
If you are a subcontractor, your income arrives after CIS deductions. GOV.UK explains: "The deductions count as advance payments towards the subcontractor's tax and National Insurance." A lender reading your bank statements needs to know why receipts look lower than your invoices.
Your pipeline
Lenders care about what happens next. A list of signed contracts, with values and expected payment dates, often does more for an application than a strong past year.
Checklist before you apply
- 6 to 12 months of business bank statements, with large or unusual items explained.
- Recent filed accounts and up-to-date management accounts.
- A short note of what the money is for and how it will be repaid.
- A list of current contracts and retentions owed to you.
- Your company's record from Companies House, so you know what charges are already registered.
- A clear answer on personal guarantees. The British Business Bank warns that a personal guarantee makes you personally liable if the business cannot repay, so take legal advice first.
Ask each lender the same questions: is the first check soft or hard, will a person read my accounts, what is the total cost including every fee, and is a guarantee capped? Writing the answers side by side makes the choice much clearer.
Frequently asked questions
Can a construction company with a past default get a business loan?
Sometimes. Some lenders rely heavily on credit scores. EAL Holdings says it does not require a perfect credit history and looks at adverse credit case by case, so explain what happened and what has changed.
Do lenders treat subcontractors differently?
Not as a rule, but CIS deductions and irregular receipts can confuse an automated check. Show your CIS statements alongside your bank statements.
Is asset finance better than a loan for plant and vans?
It can be, because the equipment itself is the security. NatWest offers this through Lombard. A loan suits wider costs such as materials and wages.
Can a sole trader apply to EAL Holdings?
No. EAL Holdings lends only to UK-registered companies.
Sources
- GOV.UK: What is the Construction Industry Scheme
- GOV.UK: Prompt payment policy
- British Business Bank: guide to personal guarantees
- GOV.UK: Find finance and support for your business
- FCA Financial Services Register
General information only, not financial advice. Business finance is credit and must be repaid, and a personal guarantee puts your own assets at risk. Lender details were taken from their own websites in October 2026; check current criteria and take independent advice before you borrow.
