What is a cashflow loan?

A cashflow loan is short- to medium-term finance designed to bridge gaps between money going out and money coming in. Businesses use cashflow loans to cover payroll, buy stock, meet supplier invoices, or handle seasonal dips in revenue.

Common cashflow solutions include unsecured business loans, overdrafts, invoice finance and factoring, merchant cash advances (MCAs) and short-term bridging lines. Each product has different underwriting rules — particularly on trading history and documentation.

For more on the main ways to fund short-term working capital see our Types of business finance page or our dedicated cashflow loans category (cashflow loans).

Why trading history matters to lenders

Trading history is one of the simplest signals lenders use to judge risk. It helps them verify turnover, seasonality, customer concentration and the consistency of cash receipts.

Lenders review trading history to answer questions such as: Is turnover steady or volatile? Are invoices to creditworthy customers? Do bank statements match declared sales? Firms with longer, consistent trading records usually access cheaper finance and more options.

Minimum trading history — what lenders typically require

There is no single answer. Below are typical ranges by lender/product type and what you can generally expect.

• High-street banks / commercial lenders: 12–24 months minimum trading history is common. Applicants usually need 12 months of management accounts or filed accounts, VAT returns (if registered) and business bank statements. Banks favour established businesses and may require security or personal guarantees for larger facilities.
• Challenger and alternative business lenders: Often 6–12 months trading history. These lenders use bank-statement underwriting and automated credit models to make quicker decisions. Rates tend to be higher than banks but approval thresholds are lower.
• Invoice finance & factoring: Can accept businesses with very short trading history — sometimes from day one — if the invoices are to creditworthy, established customers. Requirements focus on the debtor book (your customers), invoice age and concentration rather than the length of your trading history.
• Merchant Cash Advance (MCA) / card-based funders: May accept a few months’ consistent card turnover. These funders underwrite card receipts and daily sales cycles. Because they buy future card receipts, they can take on younger businesses but pricing is higher and repayment is tied to sales.
• Short-term / specialist cashflow lenders: 3–12 months trading is typical for some bridging or short-term facilities, often with higher fees and stronger security requirements.

Start-ups / no trading history: If you have no trading history, options include seeking equity, director-backed loans, pre-invoice finance for pre-sold contracts, or speaking to specialist brokers. Some lenders will consider forward contracts or confirmed purchase orders as evidence of future income.

Rule of thumb: shorter trading history → fewer lenders → likely higher cost and increased security requirements.

Documents lenders use to verify trading history

Preparing the right paperwork speeds the process and improves your chances. Commonly requested documents include:

• 3–12 months of business bank statements (often the primary document lenders review)
• Management accounts, profit & loss and cashflow statements (3–12 months)
• Filed company accounts (if available)
• VAT returns and VAT registration details (if applicable)
• Sales ledger / invoice history (particularly for invoice finance)
• Card terminal reports and merchant statements (for MCAs)
• Contracts, purchase orders or letters of intent showing confirmed future revenue
• Photo ID and proof of address for company directors

Tip: supply clean, clearly labelled PDFs or accountant-prepared extracts to reduce follow-up queries.

How UK Business Loans helps if your trading history is short

We don’t lend — we introduce. If your trading history is less than the typical 12 months, our service helps in three ways:

1. You complete a short enquiry (takes about 2 minutes) — this is not a loan application and won’t affect your credit score: Free Eligibility Check.
2. We match your business to lenders and brokers who accept your trading profile (some specialise in early-stage or card-sales-based finance).
3. Lenders/brokers contact you with tailored options and document requests so you can compare offers and choose the best fit.

Because we know which partners accept shorter trading histories (for example invoice financiers and MCA providers), we can avoid exposing you to unsuitable lenders and speed up the process.

Get Started — Free Eligibility Check

Tips to improve eligibility quickly

Small changes can make a big difference to how lenders view your business. Try these practical steps:

• Clean up bank statements — reduce personal drawings and ensure regular business receipts show clearly.
• Prepare 3–6 months of management accounts or a simple P&L and cashflow forecast.
• Move regular payments to a business account to show consistent turnover.
• Gather evidence of forward revenue — purchase orders, confirmed contracts or letters from customers.
• Consider invoice finance if you trade with creditworthy businesses — this often accepts short trading histories.
• Work with a specialist broker — they can place applications with lenders known to accept shorter histories and can sometimes negotiate terms.

Need help preparing documents? Start a free enquiry and we’ll match you to partners who can advise: Free Eligibility Check.

Typical costs, security and terms to expect

Short trading history commonly leads to higher cost and more restrictive terms. Points to watch:

• Higher interest rates or factor fees compared with bank loans.
• Arrangement, facility or exit fees may apply.
• Secured lending (against assets or property) is generally cheaper but requires collateral.
• Personal guarantees are often requested for limited companies with short trading records.

Compare multiple offers to assess effective cost, transparency and flexibility — our matching service connects you to several partners so you can do exactly that.

Application checklist & timeline

Quick checklist before you submit an enquiry:

• Company name and registration number (if limited)
• Trading start date
• 3–6 months bank statements
• Estimated monthly turnover and requested loan amount (we typically arrange loans from £10,000 upwards)
• Primary contact name and phone/email

Typical timeline (indicative):

• Pre-qualification via our enquiry — often within hours.
• Document submission — 1–3 days.
• Lender decision — 24 hours to 2 weeks depending on product and complexity.
• Funds delivery — usually 1–10 working days once approved and paperwork is complete.

Start your free enquiry — usually takes under 2 minutes

FAQs

What is the absolute minimum trading history for a cashflow loan?

Specialist funders — particularly invoice financiers and MCAs — can sometimes provide funding with just a few months’ trading, or in cases where strong invoices/contracted revenue exist even from day one. Mainstream lenders usually require 12+ months.

Can a start-up with no trading history get cashflow funding?

Options exist but are limited. Invoice finance may be possible if you have confirmed orders to creditworthy customers. Director-backed loans, equity, or bridging facilities from specialist lenders are other routes. A broker can recommend the most realistic path.

Will enquiring affect my credit score?

No — making an initial enquiry through UK Business Loans does not affect your credit score. Lenders may perform credit checks later when you decide to proceed.

What documents speed up the process?

Business bank statements, recent management accounts, VAT returns (if registered), proof of contracts and ID for directors are the most useful documents to have ready.

Do you charge for introductions?

Our introduction service is free. Lenders or brokers may charge fees for their products or include fees in pricing; we’ll make costs clear when you receive quotes so you can compare.

How quickly will a lender contact me after I submit the form?

Often within hours; sometimes the same day. Complex cases may take longer. If you want a rapid response, note this in your enquiry and include the best contact number.

Next steps — get matched to lenders who accept your trading history

If you’re ready to see realistic options for your business’s trading history, complete a short, free enquiry. It’s not an application — just a way for us to match you to lenders and brokers who can help. Get Quote Now — Free Eligibility Check

Reminder: UK Business Loans is an introducer; we do not lend or provide regulated financial advice. All finance applications, terms and credit checks are completed by the lenders/brokers you are introduced to. Costs, rates and eligibility will vary by provider.