What minimum trading history or turnover do retailers need to be eligible?

Most UK retailers need at least 6–12 months’ trading history and consistent monthly turnover to be eligible for business finance. The precise minimums vary by product, but card‑taking retailers can sometimes qualify from 3 months if they show £5,000–£10,000+ in monthly card sales. Lenders assess the overall affordability and stability of the business rather than a single threshold alone.

Updated October 2025

The quick answer retailers need

There is no single minimum that applies to every lender, but common ranges exist across retail finance products. If you operate bricks-and-mortar stores or eCommerce, the baseline expectation is regular turnover and clean bank conduct over the last 3–6 months. Longer history and stronger turnover typically unlock larger limits and better terms.

Typical minimums by funding type (indicative)

• Unsecured business loan: 12–24 months’ trading, and annual turnover usually £80,000–£150,000+ for mainstream lenders.
• Merchant cash advance (MCA): 3–6 months’ trading with card takings of £5,000–£10,000+ per month across PDQ/ePOS/gateway providers.
• Revolving credit line/overdraft alternative: 6–12 months’ trading and consistent monthly deposits of £10,000+.
• Asset finance/equipment leasing: 6–12 months’ trading is common; affordability and asset type drive the limit, with personal guarantees often required.
• Invoice finance (for B2B retail/wholesale): 6+ months’ trading and minimum annual invoiced revenue of £50,000–£100,000.
• Fit‑out/refurb finance: Usually 12+ months’ trading, with project scope and landlord consents considered.
• Growth Guarantee Scheme facilities: Viable UK businesses with turnover up to £45m; trading history requirements vary by accredited lender, with many preferring 12+ months.

These are guideposts, not promises. Card-heavy retailers with strong seasonality can qualify sooner via MCA, while higher-value unsecured loans usually require two sets of filed accounts.

What do UK lenders look for in retailers?

• Consistent sales and bank deposits, with no persistent unpaid items.
• Evidence of card takings (where relevant), low chargebacks, and stable margins.
• Clear purpose, affordability, and a plan that suits your cash flow.

Important: How Best Business Loans helps

Best Business Loans is an independent introducer that connects established UK retailers to suitable lenders and brokers. We do not offer loans directly or provide regulated advice, and eligibility always depends on a provider’s criteria. Our role is to help you navigate options and get matched quickly and transparently.

For a deeper overview of options, see our dedicated resource for retailers business loans and finance routes.

Product-by-product criteria explained

Understanding how criteria differ helps you apply for the right product at the right time. The more closely you match a provider’s sweet spot, the smoother the process. Below is a more detailed look at the main retail funding options.

Unsecured business loans

• Minimum trading history: Commonly 12–24 months; some flexible lenders consider 6–12 months at lower limits.
• Turnover: Often £80,000–£150,000+ per year, with loan sizing linked to monthly revenues and profitability.
• Notes: Personal guarantees are common; lenders value clean bank conduct and up-to-date management accounts.

Merchant cash advance (MCA)

• Minimum trading history: Frequently 3–6 months if card sales are strong.
• Turnover: £5,000–£10,000+ monthly card takings via PDQ/ePOS or online gateways (SumUp, Square, Stripe, Worldpay, etc.).
• Notes: Repayments flex with daily card receipts, which can suit seasonal retail; chargeback levels are reviewed.

Revolving credit lines

• Minimum trading history: 6–12 months with consistent deposits.
• Turnover: Typically £10,000+ per month through the business account.
• Notes: Useful for stock cycles and short-term cash gaps; facilities can scale with performance.

Asset finance and leasing

• Minimum trading history: Often 6–12 months; earlier for strong directors or asset-backed cases.
• Turnover: Flexible; focus on affordability and asset’s resale value.
• Notes: Ideal for shopfitting equipment, POS systems, vehicles, refrigeration, or warehouse kit.

Invoice finance (for B2B elements)

• Minimum trading history: At least 6 months with recurring invoicing to creditworthy business customers.
• Turnover: Minimum annual invoiced revenue often £50,000–£100,000.
• Notes: Best for retailers with wholesale or trade accounts; customer concentration and debtor quality matter.

Fit-out and refurbishment finance

• Minimum trading history: Commonly 12 months+, sometimes 24 months for larger schemes.
• Turnover: Facility sized to project cost and historic store performance.
• Notes: Lenders consider lease terms, landlord consents, and contractor details.

What documents strengthen your application?

• Business bank statements (last 3–12 months) and merchant statements for card takings.
• Latest filed accounts, management accounts, VAT returns, and aged debtor/creditor lists (if applicable).
• Proof of ID/address for directors, business lease, and any existing finance schedules.

Can newer retailers qualify with limited history?

Yes, in some cases. If you have only 3–6 months’ trading, lenders may still consider products that rely on near-real-time sales data or assets instead of full-year accounts. The most common early-stage route for retailers is a merchant cash advance if you have strong card takings.

Here are realistic options when trading history is short. Each option comes with sensible caveats about cost, limits, and guarantees. Decisions focus on bank conduct, transaction-level data, and affordability today rather than long filed accounts.

• MCA from 3 months of card sales if monthly takings exceed £5,000 and chargebacks are low.
• Smaller revolving credit lines after 6 months of stable deposits and balanced cash flow.
• Asset finance where the equipment retains value; directors’ guarantees are common.
• Supplier finance or trade credit if you can evidence steady orders and prompt payment behaviour.

What to expect if you are new. Limits are likely to be modest at first, pricing may be higher, and personal guarantees may be requested. As turnover grows and the business evidences stability, facilities can be reviewed and scaled.

Practical ways to bridge the gap. Integrate your ePOS and payment gateways to provide clean data, keep a positive average bank balance, and avoid repeated returned payments. Prepare concise management accounts and explain seasonality so affordability is clear.

A note on start-ups. Best Business Loans focuses on established businesses and is not currently set up for start-up or sole-trader applications. If you are very early stage, building 6–12 months of trading history will significantly broaden your options.

How retailers can improve eligibility and terms

Small improvements in documentation and conduct can have a big impact on eligibility. Lenders reward clarity and predictability because it reduces risk. The following steps help you present a strong, people-first case to any provider.

Fast eligibility wins

• Keep clean bank conduct: avoid persistent unpaid items and maintain a positive end-of-day balance.
• Show stability: three to six months of consistent weekly takings builds confidence.
• Reduce chargebacks and refunds: demonstrate tight stock control and customer service.
• File on time: get management accounts and VAT returns up to date.
• Separate finances: keep personal and business transactions apart to aid underwriting.

Strengthen your affordability story

• Map seasonality: explain peak and off-peak patterns and how repayments flex.
• Evidence margins: show gross margin trends and impacts of supplier changes.
• Show forward orders: purchase orders or pre-orders demonstrate pipeline strength.
• Disclose existing borrowing: clarity on commitments prevents surprises.

Documents to have ready

• 3–12 months of bank statements and merchant statements for each terminal/gateway.
• Latest accounts, real-time P&L and balance sheet, plus stock and debtors summaries.
• Lease and landlord permissions if funding a refit, plus quotes and project timelines.

Compliance-friendly expectations. No reputable lender can guarantee approval, specific rates, or instant funding without checks. Eligibility remains subject to underwriting, credit assessment, and affordability at the time of application.

Ready to check your options. Completing a Quick Quote takes minutes and does not oblige you to proceed. You will be introduced to lenders or brokers who may be able to help based on your profile.

What happens when you enquire through Best Business Loans

We designed the process to be fast, clear, and fair to retailers. You tell us what you need; our system matches you to providers that are active in your segment. You stay in control at every step.

Your step-by-step journey

• Quick Quote: Share your business details, turnover, purpose, and preferred amount.
• AI matching: We compare your profile with lender and broker criteria in our network.
• Introductions: We connect you with suitable providers to discuss terms without pressure.
• Your decision: Review options, compare affordability, and proceed only if it fits.

Important disclosures

• We are an introducer, not a lender, and we do not provide financial advice.
• Eligibility, pricing, and timing depend on each provider’s criteria and due diligence.
• Submitting an enquiry is free and without obligation; any broker fees will be disclosed by the broker.
• Applications may involve credit checks; always consider the impact on your credit profile.

FAQs

What is the absolute minimum trading history I need?

For MCA, some providers consider 3 months if card takings are £5,000–£10,000+ per month. For unsecured loans, 12–24 months is more typical, with 6–12 months possible at lower limits.

Is there a minimum turnover to get retail finance?

Many providers look for £10,000+ monthly deposits for revolving facilities and £80,000–£150,000+ annual turnover for unsecured loans. MCA providers focus on card takings rather than total turnover.

Can eCommerce-only retailers qualify?

Yes, if you can evidence gateway sales, low chargebacks, and stable order volumes. Expect to provide Stripe/Shopify/PayPal statements alongside bank statements.

Do I need to be profitable?

Profit helps, but affordability and cash flow matter most. Lenders can consider growth-stage retailers if bank conduct is sound and the repayment structure suits your peaks and troughs.

Will I need security or a personal guarantee?

Unsecured and revolving facilities often require a personal guarantee. Asset finance is usually secured on the asset, and invoice finance is typically secured against receivables.

Key takeaways

• Most retailers need 6–12 months’ trading history; MCA can be possible from 3 months with £5,000–£10,000+ monthly card sales.
• Unsecured loans generally expect £80,000–£150,000+ annual turnover and clean bank conduct.
• Strong data, tidy accounts, and clear affordability improve eligibility and terms.
• Best Business Loans introduces you to relevant UK lenders and brokers quickly and transparently.

Start with a free, no-obligation Quick Quote to check eligibility and get matched with suitable funding providers. You can then compare options and proceed only if it works for your business and cash flow.