Minimum trading history and turnover: what do UK lenders usually require?
Summary: Most UK lenders use simple “rules of thumb” for trading history and turnover to decide eligibility quickly. Typical expectations are: 12–24 months trading for unsecured loans, 6–12 months for asset finance, 3–6 months invoicing for invoice finance, and often under 6 months for some short‑term or specialist lenders. Turnover is used to size facilities (and demonstrate affordability): small loans from £10k may be available with modest turnover, while larger facilities usually need higher, stable revenues. Read on for lender-by-lender thresholds, examples, documents to prepare and practical tips to improve your chances — or start a Free Eligibility Check now to get matched with suitable lenders and brokers.
At a glance — what most UK lenders ask for
- Unsecured loans: typically 12–24 months trading; turnover thresholds vary by lender and loan size.
- Secured loans / commercial mortgages: usually 2+ years trading and proven accounts.
- Asset & equipment finance: often accept 6–12 months trading; finance is secured against the asset.
- Invoice finance: lenders typically want 3–6 months of invoice history or recurring contracts.
- Merchant cash advance & short‑term lenders: can accept under 6 months trading in some cases, but rates and affordability checks differ.
- Start‑up & specialist lenders: flexible criteria — may accept under 12 months with strong forecasts, contracts or guarantees.
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Why trading history and turnover matter to lenders
Lenders use trading history and turnover to assess risk and affordability. Trading history shows whether the business model is proven; turnover demonstrates the cash flowing through the business and helps size the facility. Lenders also look at revenue consistency (seasonal spikes vs steady income), customer concentration (one client providing most invoices), margin and sector risk.
Risk, affordability and loan‑type fit
Different loan types carry different lender risk appetites. Unsecured loans are higher risk for a lender so they usually require longer trading histories and stronger turnover. Asset finance and invoice finance are lower risk when the underlying asset or invoices can be used as security, so providers are often more flexible on trading history.
Typical requirements by loan type
Unsecured business loans (typical: 12–24 months trading)
Most mainstream unsecured lenders and many brokers expect at least 12 months trading; many prefer 18–24 months, especially for larger sums. Typical minimum turnover expectations vary with loan size and sector — a lender offering £50k likely expects demonstrable monthly revenue that supports repayments.
Exceptions: peer‑to‑peer platforms and specialist lenders can accept 12 months or slightly under, sometimes with a director guarantee or higher interest. If you have strong, recent growth and clear management accounts, you may qualify even if older statutory accounts are limited.
Example: An established limited company trading 15 months with annual turnover of £200k seeking a £30k unsecured loan — many lenders would consider this, subject to affordability and credit history.
Secured & commercial mortgages (typical: 2+ years)
When borrowing against property or taking commercial mortgage facilities, lenders want to see at least 2 years of trading and formal accounts. They assess cash flow and may underwrite against both the business performance and the security offered.
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Example: A business seeking a commercial mortgage for a shop will generally need 2+ years accounts and turnover that shows sustainable net income to service the mortgage.
Asset & equipment finance (often 6–12 months or less)
Asset finance providers are often more flexible on trading history because the financed equipment acts as collateral. Many accept businesses trading 6–12 months; stronger offers if management accounts show the business can service repayments from operating cash flow.
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
Example: A company trading 9 months can secure finance for a new van or manufacturing machine if the asset’s value supports the deal and projected cash flow is sound.
Invoice finance & factoring (often 3–6 months invoicing history)
Invoice finance is focused on the invoices and debtor quality rather than company age. Typical requirements are 3–6 months of invoice history and stable customers. Lenders will evaluate debtor concentration and the creditworthiness of your customers.
Example: A B2B firm with recurring invoices from multiple clients and 4 months of trading history may qualify for invoice discounting sooner than for an unsecured loan.
Merchant cash advances and short‑term lenders (can accept <6 months)
Some short‑term or merchant cash advance (MCA) providers specialise in newer businesses and may accept under 6 months trading if daily card takings or strong projected revenue justify the advance. These options can be faster but usually carry higher cost and aggressive repayment profiles.
Warning: Compare costs carefully and check affordability — short‑term facilities can be expensive.
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Start‑up & specialist lenders (criteria can be flexible)
Start‑up lenders and specialist funds may accept under 12 months trading if you can show strong forecasts, contracts, personal investment, or security. They often underwrite deals on potential and business plan strength rather than only historic turnover.
Example: A tech business with pre‑sales contracts and committed revenue may attract finance from a specialist lender despite limited trading history.
Free Eligibility Check — it’s quick, no obligation and helps match you to lenders who will consider your specific trading history and turnover.
Turnover thresholds — how lenders use revenue figures
Lenders use turnover to estimate how large a facility the business can support and to check repayment capacity. Turnover isn’t the only metric — gross margin, net profit and cash flow matter too — but it’s a straightforward starting point.
Examples: small loans vs larger facilities
- Loans from around £10k–£25k: some lenders will consider lower turnover businesses if cash flow is steady.
- Loans of £25k–£100k: commonly require clearer 12+ months trading and higher turnover (for example, annual turnover of £100k+ is typical in many cases).
- Facilities above £100k: lenders often expect 2+ years of trading and solid accounts showing sustained revenue.
Note: all figures are illustrative — individual lender criteria vary widely by sector and risk profile.
Practical ways to improve your eligibility fast
- Prepare recent management accounts and 3–6 months of business bank statements showing deposits and cash flow.
- Reduce personal drawings or irregular transfers; show consistent business income.
- Show forward contracts, purchase orders or recurring invoices — these demonstrate future revenue.
- Offer security (an asset) or a director guarantee where appropriate — this can open more options.
- Consider asset finance or invoice finance if you lack trading history for unsecured borrowing.
- Work with a specialist broker who knows which lenders will accept your profile.
Documents lenders usually ask for
Common requests include:
- Company registration details and recent statutory accounts (if available).
- Management accounts for the past 3–12 months.
- Business bank statements (typically 3–6 months).
- VAT returns (if registered), sales ledger or copies of large invoices.
- Evidence of contracts or purchase orders, proof of identity for directors and sometimes a director’s personal financial details.
How UK Business Loans can help — quick, free eligibility checks
UK Business Loans does not lend money. We connect businesses to lenders and brokers who specialise in the finance you need. Complete a short enquiry and we’ll match you to partners likely to consider your trading history, turnover and sector. The process is free and there’s no obligation.
Start now: Get Quote Now — it takes around 2 minutes. Submitting an enquiry does not affect your credit score. Offers are subject to lender checks and terms.
Note: We are not a lender and do not provide regulated financial advice. UK Business Loans acts as an introducer, connecting you with lenders and brokers who may contact you to discuss options. All offers are subject to lender terms, eligibility and affordability checks.
Learn more about our service and general business loan options on our business loans page.
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
Frequently asked questions
How much trading history do lenders usually want?
It depends on the loan type: many unsecured loans expect 12–24 months, invoice finance around 3–6 months, asset finance often 6–12 months, while some short‑term lenders and specialist funds can accept less.
Can I get a business loan with under 12 months trading?
Yes — in certain cases. Asset finance, invoice finance, some MCAs and specialist lenders may consider businesses under 12 months trading if cash flow, card sales or contracts support the request. Costs and terms can vary widely.
What turnover do I need for a £50k loan?
There’s no single answer — some lenders look for annual turnover multiples, others focus on monthly cash flow and margins. As a rule of thumb, lenders want to see enough recurring revenue to comfortably cover repayments; many lenders expect at least four‑figure monthly net income for a £50k facility, but criteria vary.
Will applying through UK Business Loans affect my credit score?
No — submitting an enquiry is a soft match and does not affect your credit score. Lenders may perform credit checks only when you move forward with an application.
How fast can I get a quote?
Often within a few hours during business hours; response times depend on lender availability and the complexity of your request.
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Complete a quick, no‑obligation enquiry and we’ll match you with lenders and brokers suited to your trading history, turnover and funding need (we typically handle facilities from £10,000 upwards).
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Updated: Oct 2025 — Written by the UK Business Loans team.
1. How much trading history do lenders usually require for a business loan?
Most lenders use simple rules of thumb — typically 12–24 months for unsecured loans, 6–12 months for asset finance, 3–6 months invoicing for invoice finance and sometimes under 6 months for specialist short‑term or MCA providers.
2. Can I get a business loan with under 12 months trading?
Yes — asset finance, invoice finance, some MCAs and specialist/start‑up lenders may consider businesses with under 12 months trading if you can show strong cash flow, card takings, contracts or forecasts.
3. What turnover do I need for a £50k loan?
There’s no fixed figure, but lenders usually expect recurring revenue and cash flow sufficient to cover repayments — many will look for consistent monthly net income and often at least four‑figure monthly receipts, with exact thresholds varying by lender and sector.
4. Which loan type is best if I lack trading history?
Consider asset or equipment finance (secured against the asset), invoice finance (based on debtor quality) or specialist start‑up lenders, as these options are typically more flexible on trading history than unsecured loans.
5. How do lenders use turnover and trading history to assess eligibility?
Lenders use trading history to judge business stability and turnover to size facilities and check affordability, also factoring in margins, customer concentration and revenue consistency.
6. What documents will lenders usually ask for?
Commonly requested items include company registration details, statutory or management accounts, 3–6 months of business bank statements, VAT returns, sales ledger or invoices and ID for directors.
7. How can I improve my chances of getting approved quickly?
Prepare recent management accounts and bank statements, reduce irregular personal drawings, present contracts or POs, offer security or a director guarantee and consider working with a specialist broker to target the right lenders.
8. Will submitting an enquiry through UK Business Loans affect my credit score?
No — completing the free eligibility check on UK Business Loans is a soft match and does not affect your credit score; lenders may run formal checks only if you progress to an application.
9. How fast can I get matched with lenders and receive quotes?
After you complete the quick online enquiry, UK Business Loans typically matches you to suitable lenders and brokers who often respond within hours during business hours, depending on complexity.
10. Is UK Business Loans a lender and does it cost anything to use the service?
No — UK Business Loans is a free introducer that connects you with FCA‑regulated lenders and brokers (we do not lend or give regulated financial advice), and there is no obligation or fee to submit an enquiry.