Can I apply if my company is pre-profit or made a recent loss?
Short answer: Yes — but lender criteria differ, and the right finance type matters
Many UK lenders will consider applications from companies that are pre-profit or have posted a recent loss, especially if cash flow is stable, revenue is growing, or security is available. Approval depends on the finance type, trading history, sector, and supporting documents, rather than profit alone. Best Business Loans is an introducer, not a lender, and we help you match with providers whose criteria align with your position.
Last updated: October 2025
We primarily support established UK limited companies and LLPs trading for at least 12 months. We do not currently support start-ups, sole traders, franchises, property finance, or commercial mortgage applications.
If you’re unsure whether you qualify, submit a Quick Quote for an instant eligibility sense-check. There is no obligation, and we’ll only connect you with suitable providers.
Profit isn’t the only factor: what lenders look for when you’re pre-profit or loss-making
How do lenders assess businesses that aren’t yet profitable?
Commercial lenders focus on affordability, consistency of income, and the likelihood of repayment over the term — not just last year’s profit. They will analyse bank statements, management accounts, and forward-looking cash flow to see if the business can service the facility. If profits are not yet present, evidence of growing revenue, strong gross margins, and a clear path to profitability can be persuasive.
Key signals that can offset a recent loss
Lenders often look for a robust order book, recurring contracts, seasonality that explains a temporary dip, or one-off exceptional costs that won’t repeat. Positive monthly trends, stable debtor behaviour, and healthy pipeline conversion rates can strengthen the case. Demonstrating disciplined cost controls and cash management also helps.
Typical baseline criteria you may encounter
Time trading of 12–24 months, minimum turnover thresholds, and a clear use of funds are common. Some facilities may require a director’s personal guarantee, asset security, or debenture, especially when recent accounts show a loss. Businesses in sectors with resilient demand (e.g., manufacturing, logistics, healthcare, and construction) may access broader options with the right documents.
What counts as “pre-profit” or a “recent loss”?
Pre-profit typically means you are trading but reinvesting, with EBITDA at or below breakeven. A recent loss usually refers to the latest filed accounts or interim management accounts showing negative net profit. Both can be acceptable if cash flow is strong and the facility supports a credible improvement plan.
Bottom line: if you can show affordability, trend improvement, and sensible use of funds, pre-profit or loss status does not automatically disqualify you.
Finance options that can work before profitability
Cash flow and revenue-linked solutions
Invoice finance (factoring or discounting) advances a percentage of your outstanding invoices, turning receivables into immediate working capital. Merchant cash advances and some revenue-based facilities link repayments to card takings or turnover, flexing with your sales cycles. These options can suit businesses showing strong revenue but thin or negative bottom-line profit.
Asset-backed and equipment solutions
Asset finance (hire purchase or leasing) allows you to acquire vehicles, machinery, or technology with repayments structured over time. Refinance (asset-based lending against owned assets) can unlock capital from existing equipment to fund growth or stabilise cash flow. Security from physical assets can reduce reliance on profit metrics alone.
Term loans, revolving facilities, and government-backed support
Some lenders will consider secured term loans where there’s a convincing plan and collateral, even with recent losses. Revolving credit facilities and overdraft-style products may be available if bank statements and management accounts show affordability. The Growth Guarantee Scheme (GGS) may support eligible UK businesses through participating lenders, subject to status and provider criteria.
Choosing the right route matters
Matching the facility to your trading profile is crucial: cash-flow gaps point to invoice finance, capex plans to asset finance, and longer projects to term loans. The wrong product can strain cash, while the right one supports sustainable growth. If you’re an SME exploring options, see our guidance on small business loans to understand how lenders think about risk and suitability.
Remember: features, rates, and security requirements vary by provider; we’ll only introduce you to firms that are likely to be a good fit.
How to make a stronger case when you’re not yet profitable
Show that today’s funding creates tomorrow’s profits
Explain exactly how the funds will be used, the expected return, and the timeframe. Link the facility to revenue growth, margin improvement, cost reduction, or contract delivery. A short, credible narrative can help underwriters understand why the loan is supportable.
Provide current, decision-grade financials
Submit up-to-date management accounts, rolling 12-month P&L, cash flow forecasts, and bank statements (usually 6–12 months). Include aged debtor and creditor reports to evidence collections discipline. Highlight one-offs, seasonality, and corrective actions that explain any temporary losses.
Evidence your pipeline and resilience
Attach copies of signed contracts, framework agreements, purchase orders, and letters of intent where possible. Show customer concentration risk and mitigations. Demonstrate supply chain stability, stock turnover health, and contingency plans for cost or lead-time shocks.
Strengthen the security and governance picture
Be clear about any available security, such as assets, property, or debentures, and whether directors can offer a personal guarantee. Outline internal controls, monthly reporting cadence, and board oversight to signal professional governance. If you work with an accountant or finance advisor, include their summary commentary.
Practical tip: tidy up creditor backlogs where feasible, agree time-to-pay arrangements with HMRC if needed, and ensure no undisclosed CCJs are present before applying.
Eligibility pointers, documents checklist, and common pitfalls
Who we can help most effectively
Established limited companies and LLPs trading 12+ months with verifiable turnover and clear funding use. Firms in sectors such as construction, manufacturing, logistics, hospitality, healthcare, professional services, retail, and eCommerce. Businesses that can provide recent management accounts and show a route to improved cash flow or profitability.
Documents that typically speed up decisions
Last two years’ filed accounts (if available) and the latest management accounts. Business bank statements for the last 6–12 months and VAT returns for cross-checking turnover. Forecasts, aged debtor/creditor reports, asset lists, key contracts, and any existing finance agreements.
Common reasons applications stall or decline
Incomplete or outdated information, unclear use of funds, or forecasts that don’t reconcile with historical performance. Heavy customer concentration without mitigation, poor bank conduct, or undisclosed tax arrears. Applying for an unsuitable product, e.g., a long-term term loan to cover a short-term receivables gap.
Will a credit check be performed?
Many providers run soft eligibility checks first, and they will inform you before any hard search is made. Director credit profiles and company credit files matter, even where security is available. We’ll aim to introduce you to providers whose checks align with your tolerance and application stage.
Important: late or missed repayments can affect your business credit rating, increase the total cost of borrowing, and limit future access to finance.
How Best Business Loans helps, what to expect, and your next steps
What we do (and don’t do)
Best Business Loans is an independent introducer that uses AI-driven matching to connect UK companies with suitable lenders and brokers. We do not offer loans directly or provide regulated financial advice. Our role is to help you understand your options, filter the market efficiently, and connect you with providers who may be able to help.
Our simple, transparent process
Complete a Quick Quote with your business details, finance purpose, and amount required. Our technology reviews your profile and shortlists suitable providers based on sector, criteria, and funding type. You stay in control — compare options, request a Decision in Principle, and proceed only if the terms work for you.
Compliance and fairness
We aim for communications that are clear, fair, and not misleading, in line with UK regulatory expectations and advertising standards. Eligibility, security, and pricing are set by providers and depend on your circumstances. Before any credit search or application, the provider will explain the process, checks, and any obligations.
Ready to check your eligibility?
It’s free to submit an enquiry and there’s no obligation to proceed. Provide a short explanation if you’re pre-profit or posting a recent loss — context helps lenders see the bigger picture. Start your Quick Quote today and we’ll guide you to relevant options faster.
Key takeaways
Yes — you can apply if you’re pre-profit or recently loss-making, provided you can show affordability, stability, and a credible plan. Finance types like invoice finance, asset finance, revolving facilities, and secured term loans can suit non-profitable but growing firms. Strong documentation, clear use of funds, and evidence of trend improvement significantly improve your chances.
FAQs
Can I get funding if I’ve just filed a loss but have growing sales?
Often yes, especially for products that rely on cash flow or collateral rather than net profit alone. Show consistent revenue, healthy margins, and a plan that turns growth into cash. Lenders will look closely at bank statements and debtor behaviour.
What if I’m pre-revenue?
We do not currently support start-ups or pre-revenue companies. Consider equity, grants, or sector-specific early-stage programmes until trading and revenue traction are established. You’re welcome to return when you have 12+ months of trading history.
Will I need a personal guarantee?
Personal guarantees are common for unsecured or partially secured facilities. Asset-backed options may reduce the need for a guarantee, but requirements vary by lender. If a guarantee is requested, ask about caps, reviewability, and any guarantee fee.
What security could help if my company made a loss?
Plant and machinery, vehicles, and other tangible assets can be used for asset finance or refinance. Receivables can support invoice finance, and in some cases, property security can underpin a term loan. The right security can broaden your options and improve terms.
Will a Quick Quote affect my credit file?
Submitting a Quick Quote to Best Business Loans will not affect your credit file. If you proceed with a provider, they will tell you whether a soft or hard search is required and when it will occur. Always read the provider’s disclosures before consenting to checks.
Important information: This content is for general information only and does not constitute financial, legal, or tax advice. Finance is subject to status, affordability assessments, and lender criteria. Late or missed repayments may affect your business’ credit rating and increase the cost of borrowing. Security and personal guarantees may be required. Best Business Loans operates as an independent introducer; we do not provide loans directly and we cannot guarantee approval or the lowest rate. Always consider whether a finance product is appropriate for your circumstances and seek professional advice where necessary.