Intro — quick answer

Short answer: many lenders expect at least 12 months’ trading and annual turnover in the region of £50,000–£250,000, but there are many exceptions depending on lender type, loan product and sector. For example:

• High-street banks: often 12–24 months’ trading and prefer £100k+ turnover.
• Specialist / challenger lenders: commonly 6–12 months’ trading and can accept lower turnover from around £50k.
• Alternative/online lenders: sometimes accept 3–6 months’ trading and turnovers from ~£30k, though costs may be higher.

If you want a quick, personalised answer based on your exact situation, complete a Free Eligibility Check now: Get Quote Now.

How lenders set trading-history & turnover thresholds

Why trading history matters

Lenders use trading history to confirm your business is operational, generating sales consistently and can demonstrate predictable cashflow. Longer trading history reduces perceived risk, so banks and large lenders typically require evidence of several months or years of trading.

Why turnover matters

Turnover shows the scale of your operations and helps lenders assess affordability. Higher turnover generally indicates stronger cashflow, which improves the ability to repay. However, lenders will also look at margins, expenses and net cashflow — turnover alone isn’t the full picture.

Other factors lenders consider

• Sector risk and client concentration (one big customer can be a risk).
• Quality and length of contract pipeline or purchase orders.
• Director credit history and any personal guarantees.
• Assets or invoices to secure finance (asset and invoice finance focus here).
• VAT status — some lenders request VAT registration as proof of trading.

Typical ranges by lender type

High-street banks

Typical minimum: 12–24 months’ trading. Preferred turnover: often £100k+, and many banks will look for £250k+ for larger facilities. Banks are conservative on credit history and prefer established SMEs. Use banks when you want lower rates and are prepared to provide detailed financials.

Challenger & specialist lenders

Typical minimum: 6–12 months’ trading. Turnover from around £50k may be acceptable. Specialist lenders focus on niche sectors (construction, hospitality, renewables) and can be more flexible on short trading histories when the business shows strong contracts or a good pipeline.

Alternative / online lenders & merchant cash advances

Typical minimum: sometimes 3–6 months’ trading. Turnover thresholds can be lower (from ~£30k). These lenders offer faster decisions but generally at higher cost. They often rely on bank statement lending models or card processing data.

Invoice finance & asset finance

Invoice finance: turnover matters less than the quality of your debtor book — lenders lend against invoices to creditworthy customers and may accept younger businesses if invoices are strong.

Asset finance: lenders look at the value and condition of the asset being financed (machinery, vehicles). A business with limited turnover can still qualify if the asset provides security and a reasonable deposit is available.

Start-up lending & government-backed schemes

Some start-up focussed funds or guarantee schemes accept 0–6 months’ trading. These options often require a credible business plan, relevant sector experience, or a personal/director guarantee. For projects linked to sustainability or grants, specialist routes can be available with lower turnover requirements.

Sector notes: construction & sustainability

Construction business loans

Construction lenders often prioritise contract evidence over pure turnover. Typical requirements include:

• Proven contracts, purchase orders or subcontract agreements.
• Director experience and references.
• 12+ months’ trading is common, but a strong contract pipeline can offset limited trading history.

Sustainability and renewables finance

Sustainability projects often attract specialist lenders or grant-backed facilities. Turnover requirements can be lower where the project has predictable revenue (feed-in tariffs, contracted energy sales) or where asset-backed lending is possible. Speak to specialists for project-level financing.

For broader options on tailored funding, see our business finance resources on business finance.

Documents & evidence lenders typically request

Preparing documents improves your chance of a fast decision. Typical requests include:

• Bank statements (usually 3–12 months).
• 12–24 months’ accounts or up-to-date management accounts.
• VAT returns (if registered).
• Sales ledger, invoices and purchase orders.
• Copies of contracts or evidence of pipeline.
• Cashflow forecasts and business plan (for younger businesses).
• Director ID and proof of address.

UK Business Loans shares your details only with selected partners who are likely to consider your case — this helps avoid unnecessary paperwork and speeds up lender responses.

What to do if you don’t meet the thresholds

If you fall short of typical bank criteria, you still have options:

• Approach specialist or alternative lenders who accept shorter trading histories.
• Use invoice finance or asset finance — these are asset/value-driven rather than turnover-driven.
• Provide director guarantees, a higher deposit or bring in a trading partner to strengthen the application.
• Improve your application with clear contracts, forecasted cashflow and recent management accounts.

If you’re unsure which route fits best, complete a Free Eligibility Check and we’ll match you to lenders and brokers who specialise in your situation: Start Your Enquiry.

How UK Business Loans matches you to lenders

Our process is simple and free. You complete a short enquiry (takes under 2 minutes), we match your details to lenders and brokers who specialise in your sector and loan size, then you receive contact typically within hours. We handle introductions only — we do not lend.

We work with partners experienced across construction, sustainability, invoice and asset finance and more. We help you get relevant, timely responses without multiple unnecessary submissions. Ready to be matched? Get Quote Now.

Note: UK Business Loans introduces businesses to lenders and brokers. Completing an enquiry is free and does not itself trigger a credit check.

Quick checklist before you enquire

• Trading start date and company registration details.
• Last 3–6 months’ business bank statements.
• Latest turnover figure and desired loan amount (we usually handle loans from £10,000 upwards).
• Brief description of loan purpose and sector.
• Copies of key contracts or invoices (if applicable).
• Director contact details and ID ready for quick follow-up.

When you’re ready, complete our short form: Free Eligibility Check.

Frequently asked questions

Do all lenders require 12 months’ trading?

No. Many mainstream lenders expect 12+ months, but specialist and online lenders sometimes accept 3–6 months, depending on product and supporting evidence.

What turnover do I need for a £50k loan?

There’s no fixed rule. Many lenders look for turnover from £50k upwards for smaller loans, but banks typically prefer £100k+. Alternative lenders may consider lower turnovers if other metrics are strong.

Can start-ups with no trading history get finance?

Options exist but are limited: start-up funds, director-guaranteed loans, asset finance, or grants. Specialist brokers can identify lenders that may consider pre-revenue projects.

Does turnover equal profit for lenders?

No. Turnover is sales. Lenders will assess profitability, margins and cashflow alongside turnover to judge repayment capacity.

Will enquiring affect my credit score?

No — submitting an enquiry via our site does not impact your credit file. Lenders may perform checks later as part of formal applications.

How long until I get offers after enquiring?

Many brokers/lenders respond within hours; complex cases or larger facilities can take longer. We aim to get matches quickly so you can compare options without delay.

Summary & next steps

Minimum trading history and turnover requirements vary widely. While many lenders look for 12 months’ trading and turnover between £50k and £250k, specialist routes — such as invoice or asset finance, challenger lenders, or sector-specific lenders — may accept shorter trading histories or lower turnovers when supported by strong invoices, assets or contracts.

If you want a clear, personalised steer for your business, complete a Free Eligibility Check — it’s quick, free and no obligation. We’ll match you to brokers and lenders most likely to consider your case: Get Started — Free Eligibility Check.

Important: UK Business Loans introduces businesses to lenders and brokers and does not provide loans or regulated financial advice. Completing an enquiry is free and will not by itself affect your credit score. All finance offers are subject to lender checks and terms.