What trading history or turnover must engineering firms have to get a loan match?

TL;DR (Summary): Most lenders want to see at least 6–24 months of trading for engineering firms and turnover requirements vary by product. Typical ranges: unsecured loans usually expect 12–24 months trading and annual turnover from about £50k–£250k+; secured/commercial facilities and bank lending commonly look for 12+ months and higher turnover (often £150k+); asset finance and specialist lenders can accept shorter trading records if the equipment or contracts secure the deal. Get a Free Eligibility Check to find the right match for your engineering business: Get Quote Now.

Introduction & quick answer

Engineering firms are diverse—precision manufacturers, contractors, subcontractors, design consultancies—so lender requirements vary. However, here’s a practical snapshot:

• Minimum trading history: typically 6–24 months depending on lender and finance type.
• Typical turnover bands: many unsecured or higher‑value lenders look for annual turnover from roughly £50,000 to £250,000+, while larger bank or commercial facilities usually seek turnover of £150,000+. Asset and invoice finance focus more on the asset value or invoice ledger than headline turnover.
• Loan size note: we assist businesses seeking loans from around £10,000 and upwards.

These are illustrative ranges — exact thresholds differ by lender. If you want a quick assessment, try our free eligibility check: Free Eligibility Check.

Why trading history and turnover matter to lenders

Lenders use trading history and turnover to measure risk and repayment capacity. Trading history shows business continuity and management capability; turnover indicates the scale of operations and the cash available to service debt.

Different lenders weigh these factors differently:

• High‑street banks: place heavy emphasis on verified accounts and stable profits — they prefer longer trading records and higher turnover.
• Challenger & online lenders: may accept shorter trading histories but look closely at bank statement inflows and margins.
• Specialist asset finance providers: focus on the asset being financed — they can lend to younger businesses if the equipment provides security.
• Invoice finance / factoring: assess invoice quality and debtor creditworthiness more than annual turnover.

Other documents commonly used in assessment include management accounts, VAT returns, bank statements, order books and signed contracts.

Typical trading history & turnover requirements by loan type

Below are practical, typical ranges engineering firms can expect for common finance products. These are not guarantees but reflect market norms.

Finance type	Typical trading history	Typical turnover / focus	How engineers often qualify
Unsecured business loans	12–24 months	£50k–£250k+	Stable bank receipts, decent margins and good director credit
Secured / commercial loans	12+ months	Typically £150k+ (depends on loan size)	Property or equipment security and verified accounts
Asset finance (hire purchase / lease)	0–12 months (specialist lenders accept startups)	Turnover less important — asset value key	Deposit and asset valuation often suffice
Invoice finance / factoring	6–12 months with regular invoicing	Based on invoice ledger, not annual turnover	Large, creditworthy debtors improve access
Alternative lenders / merchant cash advance	6–12 months	Depends on bank inflows / card receipts	Regular cash receipts more important than turnover
Contract / development finance	12–36 months; proven contract delivery favoured	Depends on contract values	Signed contracts and experience boost eligibility

Quick tip: if your turnover is modest but you have high‑value equipment or a strong order book, specialist lenders may still provide competitive options.

Engineering-specific factors lenders look for

Engineering firms are judged on a few sector-specific attributes that can reduce or replace strict turnover thresholds:

• Capital intensity: lenders often accept lower trading history if the equipment itself secures the loan (ideal for machinery purchases).
• Contract type: long‑term maintenance contracts or public sector work are highly valued because they provide predictable income.
• Order book & pipeline: a robust, contracted pipeline can offset shorter trading history — provide copies of purchase orders or framework agreements.
• Certifications & reputation: ISO, industry accreditations or supply chain registrations reassure lenders.
• Gross margins & seasonality: healthy margins and explanation of seasonal cycles show lenders you can handle repayments during slow months.

Evidence matters: audited accounts, recent management accounts, contract letters, and client references all improve your match probability.

How other credit and business factors change the requirement

Trading history and turnover are part of the picture. These additional factors commonly raise or lower lender expectations:

• Director credit history: strong personal credit reduces perceived risk.
• Security availability: property, plant & machinery or debenture improve access.
• Profitability: consistent profits are more persuasive than raw turnover.
• Client mix: blue‑chip end customers or public sector contracts lower risk.
• VAT registration & invoicing frequency: proven, regular invoicing helps with invoice finance and lenders who look at cash flows.

Even with limited trading history, a strong contract, a valuable asset or a reputable lead client can secure a match.

Real‑world scenarios

Scenario 1 — Start‑up engineering workshop (6 months trading)

Need: £45k for a CNC lathe. Outcome: matched to specialist asset finance lender who valued the machine and offered a hire purchase with a deposit. Documents required: business plan, supplier invoice, 3 months bank statements. Recommended next step: start with asset valuation and supplier proforma invoice before Get Quote Now.

Scenario 2 — Subcontractor (3 years trading, £900k turnover)

Need: £200k growth loan. Outcome: eligible for a competitive unsecured/secured facility via brokers because of multi‑year accounts, strong margins and large clients. Recommended next step: upload last 2 years’ accounts and bank statements to get matched via our quick form.

Scenario 3 — Medium engineering firm (turnover £500k) with unpaid invoices

Need: improve cashflow. Outcome: matched with factoring provider who advanced funds against approved invoices, improving working capital within days. Recommended next step: compile sample aged debtor list and recent invoices before you Get Quote Now.

How UK Business Loans matches engineering firms to lenders

UK Business Loans is an introducer that connects engineering businesses to a panel of lenders and brokers. Our process is designed to be fast and practical:

1. Complete a short enquiry form (under 2 minutes) — include trading months, turnover, loan amount, purpose and any security you can offer.
2. We match you to lenders/brokers most likely to consider your profile and forward your details to them.
3. You’ll typically receive contact by phone or email within hours — offers depend on document checks and lender underwriting.

Submitting an enquiry is free and not an application. It lets us identify the best finance routes for your engineering business. Start the process here: Free Eligibility Check.

How to improve eligibility before you apply

Preparing the right documents and information reduces delays and strengthens your match:

• Have the last 12–24 months’ accounts or up‑to‑date management accounts ready.
• Provide recent VAT returns and 3–6 months’ business bank statements.
• Gather copies of signed contracts, purchase orders or framework agreements that demonstrate future revenue.
• Get an asset valuation for machinery or vehicles if applying for asset finance.
• Consolidate director personal debts where possible and be ready to discuss credit issues candidly.
• Consider alternative products (asset finance, invoice finance) where turnover is below typical unsecured thresholds.

Quick tip: a clear, short cover note explaining the loan purpose and steps you’ll take to repay helps brokers present your case to lenders more effectively.

Get Quote Now — it’s free and takes under two minutes.

Compliance, transparency & what to expect

UK Business Loans does not lend money. We introduce businesses to lenders and brokers who may contact you about funding options. Submitting an enquiry does not affect your credit score. Lenders or brokers you are connected with may perform credit or identity checks later if you progress to a formal application.

We will only share your details with selected partners to find the best possible matches for your requirements. Completing our enquiry is a no‑obligation first step — you decide whether to proceed with any offer.

Frequently asked questions

Do engineering start‑ups get loans?

Yes. Start‑ups often qualify for asset finance, specialist start‑up facilities or equipment leasing. Demonstrating a contract or putting down a deposit improves approval odds.

How much turnover do lenders usually want?

It depends. Unsecured loans commonly expect £50k–£250k+ turnover; secured and bank lending typically expect higher turnover. Asset finance and invoice facilities can qualify firms with lower turnover if assets or invoices provide security.

Will enquiring affect my credit score?

No. Filling our enquiry form does not affect your credit score. Lenders may carry out checks later in the process.

What documents should I prepare?

Accounts or management accounts, VAT returns, 3–6 months bank statements, proof of contracts/orders, and director ID. For asset finance, a supplier invoice or asset quote helps speed approval.

How fast will I hear back?

Often within hours during business days. Full offers take longer once lenders review documents and complete underwriting.

Final notes & next steps

There’s no single trading history or turnover number that guarantees a match for engineering firms. Lenders assess the whole picture: trading months, turnover, profitability, assets, contracts and director background. If you’re seeking from approximately £10,000 upwards, we can help identify realistic routes — from asset finance to invoice factoring, commercial loans and specialist facilities.

Ready to see what you could qualify for? Complete a quick enquiry and get matched to lenders and brokers who understand engineering businesses: Get Quote Now — free and no obligation.

Further reading: if you want to explore sector-specific options, see our guide on engineering business loans.

1) What trading history and turnover do engineering firms typically need to qualify for a business loan?
Most lenders expect 6–24 months trading (12–24 months for many unsecured or bank loans) with turnover commonly from around £50k–£250k+ depending on product, while asset and invoice finance focus more on asset value or invoice volume than headline turnover.

2) Can engineering start‑ups get a business loan?
Yes — start‑ups often access asset finance, specialist start‑up facilities or equipment leasing if they can show contracts, a clear business plan and sometimes a deposit or personal guarantee.

3) How can asset finance help engineering firms with limited trading history or turnover?
Asset finance lenders often accept shorter trading records because the equipment itself provides security, making hire purchase or leasing viable even for younger businesses.

4) Will invoice finance work for engineering firms with low annual turnover?
Yes — invoice finance bases lending on the invoice ledger and debtor creditworthiness rather than annual turnover, so regular invoicing to creditworthy clients can unlock cashflow even with modest turnover.

5) Will submitting an enquiry on UK Business Loans affect my credit score?
No — completing an enquiry on UK Business Loans is not a credit application and won’t affect your credit score, though lenders may perform checks if you progress to a formal application.

6) What documents should engineering businesses prepare before applying for a loan?
Have 12–24 months’ accounts or management accounts, recent VAT returns, 3–6 months’ business bank statements, ID for directors, and any supplier invoices, asset quotes or signed contracts ready.

7) How quickly will I hear back after submitting a UK Business Loans enquiry?
You’ll often receive contact from matched lenders or brokers within hours on business days, with full offers taking longer after document checks and underwriting.

8) What loan amounts can UK Business Loans help engineering businesses find?
UK Business Loans can match businesses seeking finance from around £10,000 up to multi‑million pound commercial facilities via its panel of lenders and brokers.

9) Can I get a business loan for my engineering company if I have bad credit?
Yes — some specialist lenders and brokers on the UK Business Loans panel consider applications from businesses with imperfect credit histories, though terms may vary.

10) Is UK Business Loans a lender and what happens after I submit my enquiry?
No — UK Business Loans is an introducer that securely shares your enquiry with suitable FCA‑regulated lenders or brokers who may contact you to discuss funding options and next steps.