Refinance loans UK — What trading history and turnover lenders typically require

Quick answer: Lenders assess both trading history and turnover to judge sustainability and repayment ability. High-street banks and mainstream commercial lenders typically want 2–3+ years’ accounts and turnover often in the £150k–£1m+ range (depending on loan size and sector). Specialist or alternative lenders — and many brokers — commonly consider businesses with 6–12 months’ trading and lower turnover thresholds (often £50k–£250k). The precise requirement depends on product type (commercial mortgage, asset finance, invoice finance, loan consolidation), security offered, credit history and director support. If you’d like a personalised assessment, complete a short enquiry for a Free Eligibility Check: Get Quote Now.

Summary — common trading history & turnover ranges lenders use

• High-street banks (commercial mortgages & large unsecured refinance): often require 2–3+ years’ accounts; typical turnover thresholds vary widely (commonly £150k–£1m+ depending on sector and loan size).
• Mainstream SME lenders: usually expect 1–2 years trading with turnover commonly £100k–£500k.
• Specialist & alternative lenders, marketplace lenders, brokers: frequently consider 6–12 months trading; turnover thresholds often £50k–£250k and sometimes lower where strong security or guarantees exist.
• Invoice finance / cashflow refinances: typically require a trading history tied to invoice activity (often 6–12 months) and annual invoiced values commonly £100k+.
• Asset or equipment refinance: turnover matters less where the asset itself provides security; lenders can accept shorter history if asset value covers risk.

Why trading history and turnover matter to lenders

Lenders use trading history and turnover to assess:

• Sustainability of revenue: Are sales stable, growing or volatile?
• Repayment capacity: Turnover is a starting point to model cashflow and debt service ability.
• Risk grading and pricing: Longer histories and higher, consistent turnover usually get better rates and larger offers.
• Sector and seasonality risk: Hospitality, events or seasonal retail require stronger evidence of sustainability.

Product-specific requirements — what to expect by refinance type

Refinance for commercial mortgages

Typical expectations: 2+ years of accounts, proven profitability or credible forecasts, and sufficient turnover relative to property yield. Underwriting focuses on property valuation, loan-to-value (LTV), net operating income and exit strategy.

Refinance of business loans / unsecured debt consolidation

Mainstream lenders usually prefer 1–2 years’ trading; many expect a minimum annual turnover that increases with loan size. Specialist lenders or brokers can consider 12 months’ trading and turnover from about £50k upwards where circumstances justify.

Asset & equipment refinance

Lenders often place more weight on the asset value and residual value than on turnover. Acceptable trading history can be as short as 6 months if the financed asset provides adequate security.

Invoice finance / cashflow refinance

Underwriters want to see a pattern of invoicing and debtor quality. Typical expectations are 6–12 months trading and annual invoice volumes frequently above £100k, though thresholds vary by lender and debtor quality.

Property & development refinance

Here the asset and exit plan are decisive. Trading history can be less critical where the loan is secured against a strong, independently valued asset and the developer shows a credible exit (sale, refinance, forward funding).

Typical lender thresholds — realistic examples

These are representative ranges — treat them as guidance rather than firm rules:

• Very conservative/high-street lenders: 2–3+ years trading, turnover commonly £250k–£1m+, demonstrable profitability.
• Mainstream SME lenders: 1–2 years trading, turnover typically £100k–£500k.
• Specialist & alternative lenders: 6–12 months trading may be acceptable; turnover commonly £50k–£250k; sometimes lower with strong collateral or director guarantees.
• Fintech & marketplace lenders: may focus on cashflow evidence (bank statements, MRR) over formal turnover figures and can price for higher risk.

Factors that can override shorter trading history or lower turnover

• Strong, tangible security (property, high-value equipment).
• Robust personal guarantees from directors with strong credit.
• Confirmed forward contracts, purchase orders or long-term supply agreements.
• High-quality debtors (for invoice finance) or demonstrable recurring revenue.
• A clearly evidenced business plan and realistic cashflow forecasts presented by an experienced broker.

Documents UK lenders typically ask for on a refinance

Having these ready improves speed and the chance of multiple competitive offers:

• Company accounts (management or statutory) — 6–36 months depending on lender.
• Recent business bank statements (3–6 months).
• VAT returns and corporation tax filings where applicable.
• Cashflow forecasts and a concise purpose statement for the refinance.
• Invoices, contracts or POs (for invoice finance or contract-backed lending).
• Asset lists and valuations (for asset / equipment refinance).
• Identification documents for directors and company officers.

Practical steps to improve your refinance chances

1. Tidy management accounts and produce realistic cashflow forecasts.
2. Reduce related-party draws or clear-up one-off transactions that distort trading performance.
3. Consolidate documentation: make bank statements, invoices and contracts easy to review.
4. Address any adverse credit issues proactively — explain CCJs or historic defaults in writing.
5. Consider director guarantees or additional security where appropriate.
6. Speak to a specialist broker when you have under 12 months’ trading or turnover below typical thresholds — they know which lenders will consider your case.

How UK Business Loans helps

We don’t lend — we connect your business with specialist lenders and brokers who match your trading history, turnover and refinance goals. Our enquiry form is quick and non-binding (it’s not a loan application) and will be used to match you to partners most likely to deliver a suitable refinance solution. Typical loans we help arrange start from £10,000 and above. Complete a short form to get personalised options and a free eligibility check: Free Eligibility Check.

For more detailed product information and matching for refinance products, you can also read about refinance loans here: refinance loans.

Example scenarios

• Construction contractor: 18 months trading, £300k turnover, strong pipeline — likely suitable for a specialist lender or broker to refinance short-term facilities into longer-term working capital.
• Start-up manufacturer: 9 months trading, £80k turnover, significant production equipment — asset finance refinance or a secured loan arranged by a broker could be appropriate.
• Small property developer: Limited trading history but strong project valuation and exit — development refinance is possible based on asset security and DSCR.

FAQs

Do I need two years’ trading to refinance?

Not always. Many mainstream lenders prefer 2+ years, but specialist lenders, asset financiers and invoice funders may accept 6–12 months depending on security and sector.

What minimum turnover do lenders expect?

It varies. Specialist lenders may consider businesses from around £50k annual turnover; mainstream banks typically expect £150k–£250k or more. The loan amount, purpose and security are determining factors.

Will submitting an enquiry affect my credit score?

No — completing our short enquiry form is not a formal application and will not affect your credit file. Lenders may carry out credit checks later if you apply directly.

How quickly can I get a refinance quote?

Often within hours once you submit details. The matched lender or broker will contact you to discuss the options and next steps.

What if my accounts are late or incomplete?

Brokers can sometimes work from management accounts, bank statements and forecasts — but statutory accounts are preferred for mainstream lenders. Tell your broker early so they can find suitable lenders.

Ready to check your eligibility? Our enquiry is quick, free and non-binding. Provide a few details and we’ll match you to lenders and brokers who understand your sector and refinancing needs. Get Quote Now

Important information

UK Business Loans is an introducer — we do not provide loans and we do not give regulated financial advice. Completing our enquiry form is not an application and won’t affect your credit score. Any specific loan offers will come directly from the lender or broker and may be subject to credit and affordability checks.

1. Do I need two years’ trading to get refinance loans in the UK?
– Not always — while high-street banks often want 2+ years’ accounts, specialist lenders, asset finance and invoice finance providers commonly consider 6–12 months’ trading depending on security and sector.

2. What minimum turnover do lenders expect for a business refinance?
– Turnover requirements vary by lender and product (typically £50k–£250k for specialist lenders and £150k–£1m+ for mainstream banks), with loan size, security and sector determining the exact threshold.

3. Can start‑ups or businesses with under 12 months’ trading access refinance loans?
– Yes — many alternative lenders and brokers will consider start‑ups with strong assets, recurring revenue or confirmed contracts, especially for asset finance or development/refinance secured against property.

4. What documents do UK lenders typically ask for when refinancing a business loan?
– Lenders commonly request company accounts or management accounts, recent business bank statements, VAT returns, cashflow forecasts, invoices/contracts (for invoice finance) and ID for directors.

5. Will submitting an enquiry with UK Business Loans affect my credit score?
– No — completing our enquiry is not a loan application and won’t affect your credit file; lenders may perform checks only if you proceed with a formal application.

6. How quickly can I get a refinance quote after enquiring?
– You can often receive initial quotes or be contacted by matched brokers and lenders within hours of submitting our short enquiry form.

7. Which refinance product should I choose — commercial mortgage, asset finance or invoice finance?
– The best product depends on your needs: commercial mortgages suit property-backed refinance, asset finance works when equipment secures the loan, and invoice finance is ideal for unlocking cash tied up in unpaid invoices.

8. Can I get refinance if I have poor credit or CCJs?
– Possibly — some specialist lenders and brokers work with imperfect credit profiles, though offers may require higher rates, additional security or director guarantees.

9. How much can I borrow through UK Business Loans for refinancing?
– Our partners arrange refinance loans from around £10,000 up to multi‑million pound facilities depending on lender appetite, security and business financials.

10. What practical steps improve my chances of refinancing successfully?
– Improve prospects by preparing tidy management accounts and cashflow forecasts, consolidating bank statements and invoices, addressing adverse credit proactively, and considering additional security or director guarantees.