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What Is Construction Finance?

Construction Finance pertains to the management of funds, resources, and financial strategies for construction projects, ensuring that budgets, timelines, and cost controls are maintained throughout the build process. It helps firms purchase building materials, hire equipment, and pay contractors when cash flow is tied up in ongoing work, preventing project delays and liquidity shortfalls.

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Why Use Construction Finance?

  • Ensure Project Continuity: Access capital to cover upfront labour, materials, and contractor fees so your construction schedule never stalls due to cash shortages.
  • Phased Funding: Funds are released in stages aligned with project milestones—such as foundation completion or roof installation—matching cash flow to actual progress and reducing interest costs.
  • Flexible Working Capital: Release cash locked in lengthy contracts and retentions to reinvest immediately in subsequent project phases, rather than waiting for final certificates.
  • Competitive Interest Rates: Secured nature of construction finance often results in lower rates than unsecured business loans, giving you more favourable borrowing costs.
  • Tailored Solutions: Choose from a variety of facilities—construction-to-permanent, construction-only, and renovation loans—designed to match your project scope, duration, and risk profile.
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How Does Construction Finance Work?

  1. Application & Pre-Qualification
    Submit detailed project plans, construction budgets, and your company’s financials to a lender for an initial eligibility check .
  2. Valuation & Underwriting
    The lender commissions a site appraisal, reviews draw schedules and builder credentials, and sets loan-to-cost ratios and interest terms based on risk assessment .
  3. Drawdown & Disbursement
    Funds are released in tranches at agreed milestones—such as completion of foundations or roof works—ensuring financing aligns directly with project stages.
  4. Interest-Only Payments
    During construction, you typically pay interest only on the amounts drawn down, reducing your monthly obligations until the project completes.
  5. Exit & Conversion
    Upon project completion, repay the facility via property sale, refinance into a long-term mortgage, or convert under a construction-to-permanent loan agreement.

Types of Construction Finance

Loans

Construction Loans are short-term credit facilities that fund project costs—materials, labour and contractor fees—via phased drawdowns aligned to agreed milestones, requiring due diligence on budgets. These facilities are repaid or refinanced upon completion, bridging cash-flow gaps efficiently

Asset-Based Lending

Asset-Based Lending enables businesses to secure financing lines by pledging assets—such as equipment, inventory or receivables—as collateral; available funding adjusts with asset valuations, accelerating working-capital release, with lender recourse on default

Asset Finance

Asset Finance lets companies acquire or lease essential equipment—plant, machinery or vehicles—through structured payments over agreed terms, preserving capital and avoiding full purchase outlays. Options include hire purchase, leasing or sale-and-leaseback arrangements, typically matched to asset depreciation schedules

Benefits of Construction Finance with Tando Capital

  • Fast Approval & Funding: 95 % of applicants receive funds within 48 hours.
  • Tailored to Your Business: No one-size-fits-all—our experts recommend the best solution based on your industry, customer profile, and cash-flow needs.
  • Transparent Fees: Competitive rates with no hidden charges—what you see is what you pay.
  • Dedicated Account Manager: A real advisor on hand, not a bot, to guide you through setup, collections (if applicable), and ongoing support.
  • UK & Essex Specialists: We know the local market, sector nuances, and can connect you with the right funders for your business size and growth plans.

Why Choose Tando Capital?

  • Human-Led Process: Speak with experienced finance professionals from day one—no automated call trees.
  • Proven Track Record: 98 % customer satisfaction, with 92 % of clients reporting improved cash flow within their first month.
  • Full Compliance & Security: FCA-regulated partners, secure data handling, and clear agreements.
  • One-Stop Funding Hub: Beyond Construction Finance, we offer Invoice Finance, Business Loans, Property Finance, Merchant Cash Advance, Property Finance, Payroll Finance, and more—ensuring all your funding needs are covered in one place.
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Our Mission Is To Make Finance Faster, Fairer, And More Human.

connecting businesses with real experts, not automated systems.

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95
%
of approved applicants receive funding within 48 hours.
92
%
of clients report improved cash flow within the first 30 days.
98
%
customer satisfaction rating based on service and support.

Our Services

We give real conversations with real experts who care about your business.

Business Loans

Access flexible funding to grow your business, manage expenses, or invest in new opportunities—with repayment options suited to your cash flow and goals.

Invoice Finance

Invoice financing lets you unlock cash tied up in unpaid invoices, giving your business faster access to working capital without waiting for customers to pay.

Construction Finance

Tailored financial solutions specifically for construction companies to manage projects, procure materials, and ensure steady progress through every development phase.

Merchant Cash Advance

Get fast funding based on your future card sales, with repayments taken as a percentage of daily takings—ideal for businesses with fluctuating revenue.

Property Finance

Finance for property purchases, developments, or refurbishments—supporting commercial, residential, and investment projects with tailored lending options.

Payroll Finance

Ensure your team is paid on time, every time. Payroll finance bridges short-term cash flow gaps so you can cover wages even when clients pay late.

FAQs

What types of financing does Tando Capital offer?

Tando Capital provides a range of tailored funding solutions to meet diverse business needs:

  • Business Loans: Flexible funding to grow your business, manage expenses, or invest in new opportunities, with repayment options suited to your cash flow.
  • Invoice Financing: Unlock cash tied up in unpaid invoices to maintain working capital without waiting for customers to pay.
  • Merchant Cash Advance: Receive fast funding based on your future card sales, with repayments taken as a percentage of daily takings—ideal for businesses with variable revenue.
  • Working Capital Solutions: Flexible financing designed to boost cash flow, helping you cover operational costs and seize new opportunities.
  • Payroll Finance: Bridge short-term cash flow gaps so you can cover wages even when clients pay late.
  • Property Finance: Funding for commercial, residential, or development projects, including purchases, refurbishments, and investments.

How quickly can I get funding through Tando Capital?

One of Tando Capital’s core priorities is speed. We offer:

  • Quick Approvals: Our streamlined process delivers funding decisions fast—often within three working days for eligible applicants.
  • Dedicated Advisor Support: As soon as you complete our short form, a specialist will be in touch within three working days to guide you through the next steps, ensuring minimal delays.

How is Tando Capital different from other finance providers?

Tando Capital stands out by prioritising human expertise over automated bots:

  • Real Conversations with Human Advisors: Every applicant speaks directly with an experienced finance specialist who understands the nuances of your business.
  • Tailored Funding Solutions: Instead of one-size-fits-all templates, we build a funding package around your specific goals, challenges, and cash-flow needs.
  • Transparent Process: From application to approval, we maintain clear communication—no hidden fees, no confusing fine print.

What criteria do I need to meet to qualify for funding?

While criteria vary by product, Tando Capital generally considers:

  • Business Credit Profile: A healthy or improving credit profile helps secure more favourable rates.
  • Revenue and Cash Flow: We assess your historical revenue, outstanding invoices, and overall cash-flow stability to tailor the right solution.
  • Business History: Typically, businesses in operation for at least six months with verifiable financials are preferred, though specific requirements depend on the financing product you choose.
  • Collateral (for Property Finance): For loans tied to property purchases or developments, acceptable collateral and valuation will be required.
    Your dedicated advisor will walk you through the exact requirements for your chosen product and help prepare the necessary documentation.

What is the application process like?

Our application process is designed to be quick and transparent:

  1. Consultation: Book a free call with one of our finance specialists to discuss your business needs, goals, and funding options.
  2. Tailored Assessment: Your dedicated advisor reviews your financials, explores suitable products, and outlines the best options for your unique situation.
  3. Personalised Offer: Once you choose your preferred solution, your advisor handles the details—keeping you informed and supported until funds are secured.
  4. Funding: After approval, funds are disbursed according to your needs and agreed-upon timeline.

What fees or interest rates can I expect?

Tando Capital is committed to full transparency—there are no hidden fees:

  • Competitive Rates: Interest rates and fees vary based on the product, your business’s risk profile, and market conditions.
  • No Surprises: Your dedicated advisor will clearly outline all applicable fees (origination, servicing, or early repayment) before you sign any agreement.
  • Repayment Flexibility: Many of our products offer flexible repayment schedules, such as daily automatic deductions for merchant cash advances or structured installments for business loans.
    If you have more specific questions about cost, simply get in touch via our short form or book a call, and we’ll provide a personalised breakdown.
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