What are typical eligibility requirements for established practices (turnover, trading history)?
Answer in brief: turnover, trading history and stability
Most UK lenders expect established professional practices to show a minimum annual turnover of £100,000–£250,000 and at least 12–24 months’ trading history, with stable cash flow shown on bank statements and filed accounts. Requirements vary by product and provider, but consistent revenue, clean conduct and evidence of affordability are the foundations of eligibility. As an introducer, Best Business Loans helps you identify providers whose criteria align with your practice profile, but we do not supply loans or guarantee approval.
Why lenders focus on turnover and trading history
Turnover indicates scale and resilience, while the length and quality of trading history evidence consistency across cycles. Established practices with predictable fee income, recurring contracts and sound debtor controls typically match lender risk appetite. Shorter histories can still be fundable if supported by strong assets, quality management accounts and solid bank conduct.
What “established practice” usually means to lenders
Lenders use “established” to describe businesses that operate as limited companies or LLPs with filed accounts, professional indemnity insurance, and clear governance. Typical examples include accountants, solicitors, dental clinics, veterinary practices, surveyors and other professional firms. Sole traders and start-ups usually face narrower options and tighter caps.
Quick eligibility checklist
– Annual turnover above the provider’s minimum threshold (often £100k+).
– At least 12 months of trading, with 24 months preferred for longer-term loans.
– Positive bank statement conduct, with headroom to service new commitments.
Compliance note
All information here is general guidance. Finance is subject to status, eligibility and lender criteria. Terms, conditions and availability may change without notice, and nothing on this page is financial advice.
Turnover expectations by finance type
Turnover thresholds differ by facility, sector and risk profile. Below are common ranges for established practices; these are indicative only and not binding on any specific lender.
Unsecured term loans and revolving credit
– Typical minimum turnover: £100,000–£250,000 p.a.
– Preferred trading history: 24+ months (some allow 12 months with stronger credit).
– Lenders assess affordability via EBITDA, free cash flow, debt service coverage ratio (DSCR) and bank conduct.
Asset finance (equipment, vehicles, technology)
– Typical minimum turnover: £75,000–£150,000 p.a., depending on asset type and age.
– Trading history: 12+ months is common; start-up exceptions exist in asset-rich cases but are niche.
– Security is asset-backed, with advance percentages reflecting asset quality, condition and resale value.
Invoice finance and selective invoice funding
– Typical minimum turnover: £250,000–£500,000 p.a., or monthly B2B invoicing of £50,000+ for some providers.
– Trading history: 12–24 months with a diversified debtor book and low concentration risk.
– Advance rates commonly range from 70%–90% of eligible invoices, subject to sector, debtor quality and dispute history.
Merchant cash advance (card-based practices)
– Suitable for practices that take significant card payments (e.g., private dental or aesthetics clinics).
– Typical monthly card takings required: £5,000–£10,000+ over the last 3–6 months.
– Trading history: often 6–12 months of card processing with stable volumes.
Professional practice loans (sector-specific)
Some lenders offer products tailored to accountants, solicitors and clinicians, including succession funding, partner buy-in or tax funding. Turnover thresholds can remain similar to unsecured loans, but underwriting places more weight on recurring fee income, lock-up days, WIP, and client continuity.
Trading history and the documents lenders usually ask for
Lenders want to see both historical performance and “real-time” health. Strong presentation of documents can materially improve eligibility and speed.
Commonly requested documents
– Last 6–12 months’ business bank statements (sometimes up to 24 months).
– Filed statutory accounts for the last 1–2 financial years, plus in-year management accounts.
– VAT returns, debtor/creditor ledgers and aged receivables/payables where relevant.
Additional information for professional practices
– Proof of professional indemnity insurance and regulatory registrations (e.g., SRA, CQC, GDC, RCVS, ACCA/ICAS).
– Partner/shareholder details, including ownership structure and any buy-in/out plans.
– Evidence of lock-up management (WIP and debtor days) and client continuity.
Affordability and cash flow conduct
Lenders scrutinise inflows/outflows, missed payments, returned items and seasonality to gauge resilience. A typical target is DSCR of 1.2x–1.5x or higher for term commitments, though approaches vary. Strong management accounts that reconcile to bank data can offset a shorter history.
Credit profile and adverse markers
Historical CCJs, arrears or defaults do not always preclude funding, but they narrow options and increase scrutiny. Clear explanations and evidence of remediation are essential. Transparent disclosure builds confidence and may preserve eligibility with pragmatic lenders.
Growth Guarantee Scheme (GGS) context
Some lenders participate in the British Business Bank’s GGS for eligible UK SMEs. Scheme availability, minimum turnover and trading history are set by individual lenders, and eligibility is not guaranteed. Always review the latest scheme criteria on the provider’s site.
Credit strength, security and sector nuances for established practices
Underwriting weighs the whole picture: revenue stability, profitability, leverage, sector defensibility and management capability. Security and personal guarantees are common levers for improving eligibility.
Security, guarantees and covenants
– Personal guarantees (PGs) are common for unsecured loans, especially for SMEs.
– Debentures or fixed/floating charges may be used for larger facilities.
– Asset-backed facilities rely on asset-to-loan value and clear ownership/title.
Profitability and leverage
Consistent profits or strong recurring fee income are powerful eligibility signals. Some lenders set maximum gearing or net debt to EBITDA guardrails, with tolerance varying by sector. Practices with robust margins, low debtor days and predictable renewals are often favoured.
Professional practice specifics
– Accountancy: predictable retainer income and diversified SME client bases support stability; see our guidance on accountants’ business loans for more context.
– Legal: attention to WIP valuation, funding of disbursements and client account governance.
– Dental/veterinary/health: blend of NHS/private income, chair occupancy and clinician utilisation can matter.
Concentration and customer quality
Over-reliance on one or two clients increases risk and can limit advance rates, especially in invoice finance. Evidence of strong debtor quality, prompt payment and low disputes improves eligibility. Where concentrations exist, mitigants include longer trading history, stronger margins or additional security.
Environmental, social and governance (ESG)
Some providers now consider ESG risks and opportunities in underwriting. Practices investing in energy efficiency or sustainability upgrades may access tailored facilities through specific lenders. Documentation of savings and outcomes can support the case.
Improving eligibility and next steps (with FAQs and key takeaways)
Eligibility is not static. Small improvements in documentation, governance and cash flow discipline can expand the lender pool and improve terms.
Practical steps to strengthen your case
– Keep management accounts up to date, reconciling to bank statements and VAT returns.
– Shorten debtor days, segment debtors and document credit control processes.
– Prepare a concise funding rationale and forecast showing affordability under conservative assumptions.
What to prepare for a fast decision in principle
– 6–12 months of bank statements and your latest filed accounts.
– In-year management accounts and aged debtors/creditors (if applicable).
– Proof of identity, ownership, insurance and relevant registrations.
Frequently asked questions
What turnover do I need for a business loan?
Many unsecured lenders look for £100,000–£250,000+ annual turnover. Asset-backed options can be available at lower turnover if the asset profile is strong.
How long must my practice have traded?
12 months is a common minimum, with 24 months preferred for longer-term loans. Product-specific exceptions may exist, subject to affordability and credit profile.
Can I get funding with historic adverse credit?
Potentially, yes, but options reduce. Provide context, evidence of resolution and show clean recent conduct to support eligibility.
Key takeaways
– Typical eligibility for established practices: £100k–£250k+ turnover and 12–24 months’ trading with stable bank conduct.
– Requirements vary by product; asset-backed and invoice-led facilities use different metrics.
– Strong documentation and clear affordability narratives materially improve your options.
Clear, fair and not misleading
We do not offer loans directly and we do not provide financial advice. Our role is to introduce you to lenders or brokers who may be able to help, based on the details you provide. Any funding is subject to status, eligibility, affordability checks and the provider’s terms.
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Updated October 2025