Fast answer

Quick answer: most mainstream lenders typically expect 12–36 months’ trading (many prefer around 24 months) and annual turnover from roughly £50,000–£150,000 upwards depending on loan type and size. Specialist hospitality funders, asset/asset-based lenders and broker panels can consider 6–12 months’ trading or lower turnover where there is strong security (freehold, equipment) or director support, but these options usually cost more.

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Why trading history & turnover matter to pub lenders

Lenders use trading history and turnover as primary signals of risk. Trading history shows whether a pub’s revenues are stable and reliable; turnover helps lenders determine the business’s ability to service debt. For pubs, lenders also factor in seasonal patterns, wet-led versus food-led revenue mixes, and whether the property is freehold, leasehold or tied.

Example: a seaside, wet-led pub with strong summer months but low winter trade will be underwritten differently to a city gastropub with year-round restaurant trade — lenders smooth seasonal income or stress-test forecasts to judge affordability.

Minimum trading history lenders commonly require (by finance type)

Different finance products have different expectations. Below are typical ranges you can expect — these are guidelines, not guarantees.

Commercial mortgage (acquisition / refinance)

Typical trading history required: 2+ years; many mainstream commercial mortgage lenders prefer 3 years of filed accounts for loans above £250k.

Turnover guidance: lenders often look for consolidated turnover from about £150k–£300k+, and focus on EBITDA/net profit, loan-to-value (LTV) and interest cover ratios.

Security: a freehold strengthens the case significantly; leasehold purchases rely on the quality and term of the lease and the pub’s historic trading.

Business loans (secured / unsecured)

Typical trading history required: many lenders ask for 12–24 months of trading. Secured business loans (using property or assets) are usually more flexible on trading history.

Turnover guidance: small loans from around £10k–£50k can be considered with turnover from c.£50k if cashflow is demonstrable; larger facilities (e.g., £50k–£250k) typically require stronger turnover and profitability.

Asset & equipment finance

Typical trading history required: 6–12 months is often acceptable. Asset finance providers look closely at the value and life of the asset (cellar kit, ovens, refrigeration) and are more comfortable funding the equipment itself.

Turnover guidance: thresholds are lower because the asset acts as primary security; lenders focus on cashflow to cover repayments.

Fit-out / refurbishment finance

Typical trading history required: commonly 12–24 months, with lenders wanting to see current trading and credible post-refurb forecasts.

Turnover guidance: depends on project scale; lenders evaluate projected uplift in turnover and margins post-investment.

Short-term & alternative finance (MCAs, invoice/merchant finance)

Typical trading history required: some alternative funders will accept 3–6 months’ trading if card-merchant receipts or invoices show adequate income. These options are more expensive but faster and more flexible.

Turnover thresholds by loan size — quick reference

Typical examples (guidance only):

• Loans £10k–£50k: often 6–12 months trading; turnover from around £50k
• Loans £50k–£250k: typically 12–24 months trading; turnover often £75k–£200k
• Loans £250k+: commercial mortgage territory — 24–36 months trading; turnover often £150k+

Actual lender offers depend on profitability, security (freehold/leasehold), director guarantees and local market conditions.

Special cases & nuance: tied pubs, managed pubs, groups, start-ups

Tied pubs: tied agreements (brewery tie) can restrict beer sales and affect value — some funders reduce valuation multiples for tied businesses or require stronger covenants.

Multi-site / group owners: lenders will often consider group accounts. If the group has strong consolidated turnover, lenders may accept lower trading history per-site.

Managed or leased pubs: lenders review management agreements and covenant strength; predictable management fees can help underwriting.

Start-ups and acquisitions: buying an existing pub with historic accounts is the strongest position. For brand-new ventures with no pub trading history, specialist lenders, higher-cost facilities and director guarantees are typically required. Asset finance and some commercial mortgages for refurbishment-acquisition deals can still be arranged where the business plan and security are strong.

Seasonal venues: lenders generally annualise or smooth income over 12 months; a well-explained forecast helps.

How lenders assess “turnover” for pubs — documents & adjustments

What underwriters will request:

• Filed company accounts (12–36 months)
• VAT returns and HMRC records
• Business bank statements (typically 3–6 months)
• EPOS or takings reports (card/EPOS daily sales)
• Management accounts and P&L, balance sheet
• Lease or tenancy agreements, freehold title, rent rolls
• Staff payroll, supplier contracts and a business plan / cashflow forecast

Adjustments: lenders may smooth seasonal income, add back owner wages or adjust EBITDA for one-off items. Accurate EPOS and VAT evidence speeds decisions.

How to improve your eligibility — practical checklist

Before you apply or request a match, take these steps to strengthen your position:

• Gather 12–36 months of filed accounts. If not available, use accountant-prepared management accounts and VAT returns.
• Ensure bank statements and EPOS reports are reconciled and clearly show takings.
• Prepare a realistic cashflow forecast that shows post-investment trading (if seeking refurbishment finance).
• Consider offering security (property, fixtures & fittings) and be ready to provide a director guarantee if required.
• Secure or clarify tenancy/lease terms and supplier contracts to reduce perceived risk.
• Work with a specialist hospitality broker who understands pub valuations and lender appetites.

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We organise introductions for loans from around £10,000 upwards. Submitting an enquiry is free and non-binding.

Typical timeline, costs & what to expect

Timeline:

• Initial match & indicative response: often within hours to 48 hours.
• Full underwriting (smaller loans): 1–6 weeks.
• Commercial mortgages / complex deals: 6–12+ weeks (valuations, legal searches, lender committees).

Costs to budget for: arrangement fees, valuation fees, solicitor/legal fees, and possibly early repayment charges. Interest rates and fees vary with lender risk, loan type and tenure — always ask for a full costs breakdown.

Transparency note: read fee schedules carefully before accepting an offer.

Documents checklist (ready to upload)

Helpful to have when you enquire:

• Photo ID and proof of address for directors
• 12–36 months company accounts and management accounts
• VAT returns (last 12 months)
• Bank statements (last 3–6 months)
• EPOS/till reports or merchant statements
• Lease/tenancy agreements or freehold title
• Business plan and cashflow forecast for investment or acquisition

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FAQs

Do lenders accept less than 12 months trading for pubs?

Some specialist and alternative lenders will consider 3–12 months of trading, particularly for asset finance or merchant/merchant cash advances, but expect higher rates and extra security or guarantees.

Will my enquiry affect my credit score?

Submitting an enquiry to UK Business Loans does not affect your credit score. Lenders may perform credit checks only if you proceed with a formal application.

Does being a tied pub reduce my chances?

A tied tenancy can affect valuation and lender appetite because it limits beer sourcing and resale value. Lenders will review the tie’s terms and the margin impact when assessing risk.

Can I borrow to buy stock or cover seasonal peaks?

Yes. Working capital, overdrafts, invoice finance, merchant advances and short-term business loans can be used to buy stock or smooth seasonal cashflow.

What if I’m buying an existing pub with accounts under the current owner?

Lenders prefer to see historic accounts for that trading location. If these exist, they are a strong underwriting positive even if the purchaser is a new operator.

How quickly will I get a quote?

After you submit basic details we can match you to suitable brokers and lenders — responses often arrive within hours, though full offers take longer.

Next steps — get a free eligibility check

Want a quick, no-obligation assessment? Complete a short form and we’ll match you with lenders and brokers who specialise in pubs and hospitality. Typical response times are fast and the process is free.

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We do not lend money or give regulated financial advice. Your enquiry is free and will not affect your credit score. Lenders may charge arrangement fees and run credit checks if you proceed with an application.

Internal resources & image guidance

Useful related pages: pubs business loans.

Image suggestions (for developers / editors):

• Hero image: pub interior showing bar and tables — alt: “Pub interior showing bar and tables — pub funding and refurbishment example.”
• Chart: trading history vs loan size visual — alt: “Chart showing trading history requirements vs loan sizes for pub funding.”
• Documents collage: accounts, VAT return, EPOS printout — alt: “Documents lenders review for pub loan applications: accounts, VAT returns, EPOS.”