Are start-up practices or first-time buyers eligible for finance?
Short answer: Yes, start-up practices and first-time buyers can be eligible for business finance in the UK, but approval depends on sector, trading history, security, and personal track record. Lenders apply stricter criteria to new ventures, and terms may be less flexible than for established businesses.
Best Business Loans does not provide loans directly and currently focuses on matching established UK companies with suitable commercial lenders and brokers. However, this guide explains typical routes to finance for start-ups and first-time buyers, what lenders look for, and practical steps to improve eligibility.
The essentials: who qualifies, and what lenders look for
What do lenders typically assess for start-ups and first-time buyers?
Lenders assess three pillars: the viability of the plan, the people behind it, and the protections in place if things go wrong. For start-up practices and first-time buyers, underwriters look closely at personal experience, projected cash flow, and the amount of personal commitment.
Expect questions about sector qualifications (e.g., dental, veterinary, legal), prior management or P&L responsibility, and any existing customer pipeline or contracts. Many lenders will ask for a personal guarantee, a deposit, or asset security to offset limited trading history.
- Business plan and 12–36 month financial forecasts
- Personal experience and relevant certifications
- Deposit contribution and security/guarantors
- Evidence of demand or signed contracts
- Credit profile and affordability
Clear, fair, and not misleading disclosure
Finance is always subject to status, affordability checks, and lender criteria. Rates, fees, and terms vary by provider, sector, and risk profile. Security may be required and personal guarantees are common for start-ups and first-time buyers.
Best Business Loans acts as an independent introducer and does not offer loans directly. We currently prioritise established UK businesses and do not support franchises, property finance, or commercial mortgages.
Finance routes for start-up practices
Which finance types are commonly available to new practices?
Start-up practices in regulated or skilled sectors (such as dental, veterinary, healthcare, surveying, and accountancy) may access specialist practice loans, asset finance for clinical or technical equipment, and fit-out finance for refurbishments. Lenders in these niches value professional qualifications and transferable experience.
Leasing and hire purchase can fund tools, machinery, IT, or medical devices with manageable monthly payments. Fit-out finance can cover furniture, flooring, and refurbishment costs, sometimes bundled with equipment over a similar term.
- Asset finance: Lease or hire purchase of equipment, with the asset as primary security
- Fit-out finance: Funding for refurbishment and practice setup costs
- Vendor finance: Some suppliers offer embedded finance partnerships
- Working capital: Select providers may offer small facilities with a PG
- Government support: Start Up Loans via the British Business Bank for eligible individuals
Start-up vs established: typical expectations
| Factor | Start-up practice | Established business |
|---|---|---|
| Trading history | None or pre-trade | 12–36 months+ |
| Security | PG and asset-backed common | PG may be waived in some cases |
| Rates/fees | Higher due to risk | Lower with strong accounts |
| Approval speed | Longer, more evidence needed | Faster if financials are strong |
Note: Best Business Loans focuses on established SMEs. If you are a pre-trade start-up, consider guidance from the British Business Bank’s Start Up Loans programme, alongside sector-specific mentors and professional bodies.
First-time buyer finance: acquisitions, assets, and premises
What does “first-time buyer” mean in business finance?
It commonly refers to someone buying a business for the first time, acquiring a practice, or purchasing major assets with no prior borrowing track record. Lenders examine your managerial experience, sector know-how, and the strength of the acquisition target.
Acquisition finance is usually structured through a combination of term debt, asset-backed lending, and contributions from the buyer. Earn-outs or vendor deferred consideration can reduce the upfront cash needed, subject to negotiation with the seller.
- Business acquisition loans: Based on target profitability and buyer’s experience
- Asset-backed facilities: Funding against equipment, vehicles, or receivables
- Vendor finance: Deferred payments agreed with the seller
- Working capital lines: For post-completion cash flow
Important note on property and mortgages
Commercial property mortgages and property development finance fall outside our current scope. If your first-time purchase includes property, speak to a suitably authorised mortgage intermediary.
For non-property acquisitions or asset purchases, established trading companies may still qualify for flexible commercial finance structures. Strong due diligence and robust forecasts are essential for lender confidence.
How to improve approval odds as a start-up or first-time buyer
A simple step-by-step approach
- Define the funding purpose clearly and quantify costs with quotes or heads of terms.
- Prepare a concise business plan and monthly cash flow forecasts for 24–36 months.
- Evidence your track record with CVs, references, and sector qualifications.
- Show commitment through a deposit or retained earnings where possible.
- Identify assets that can be funded or used as security to reduce risk.
- Gather documents early to speed underwriting and reduce queries.
Documents checklist for faster decisions
- Photo ID and proof of address
- Business plan and financial projections
- CVs, qualifications, and evidence of experience
- Bank statements (personal and business if trading)
- Quotes, invoices, or supplier proposals for equipment/fit-out
- Acquisition documents: accounts, heads of terms, due diligence materials
Sector nuances and an industry example
Underwriting expectations vary by sector. Professional services and healthcare often attract specialist lenders that understand clinical kit, regulated standards, and referral pathways.
Construction and trades firms may rely more on asset finance for tools, vehicles, or fabrication equipment, alongside staged fit-out funding for premises. For related guidance, see our resource for building services businesses seeking finance.
How Best Business Loans helps, plus FAQs and key takeaways
Where we fit in your journey
Best Business Loans uses AI-driven matching to connect established UK companies with suitable commercial finance providers. We do not offer loans directly and do not currently support applications from start-ups, sole traders, franchises, property finance, or commercial mortgages.
If your business is already trading and you need equipment, vehicles, fit-out or working capital, our network may include lenders or brokers who are active in your sector. Submit a Quick Quote to check potential eligibility with no obligation.
Quick Quote, DIP, and eligibility checks
- Complete a short Quick Quote form with your company details and funding need
- Our system analyses your profile and matches you with relevant providers
- You may receive an eligibility view or Decision in Principle from a lender or broker
Important compliance information
All information here is general and not financial advice. Finance is subject to status, affordability, and provider criteria; terms and fees vary.
Security may be required and personal guarantees are common for new ventures. If you default on a secured agreement, your assets could be at risk.
FAQs
Can start-up practices get finance without trading history?
Some specialist lenders consider start-ups based on professional credentials, a robust business plan, and security. Expect a personal guarantee, deposit, or asset-backed structure.
What deposit do first-time buyers typically need?
Deposits can range widely by deal type, often 10%–30% for acquisitions, and less for asset finance where the asset secures the facility. Vendor deferred consideration may reduce upfront cash in some cases.
Does the Growth Guarantee Scheme help start-ups?
Eligibility depends on lender criteria and the scheme terms in force. Many providers prefer some trading history, even where government-backed options exist.
How long does approval take?
Simple asset finance can be fast once documents are ready. Acquisitions and complex fit-outs take longer due to due diligence and legal work.
Do you help start-ups today?
We currently prioritise established UK businesses. If you’re pre-trade, consider the British Business Bank’s Start Up Loans programme and sector mentorship while you build trading history.
Key takeaways
- Eligibility: Start-ups and first-time buyers can qualify, but lenders demand strong plans, personal commitment, and often security.
- Products: Asset finance, fit-out finance, acquisition loans, and vendor finance are common routes.
- Evidence: Experience, forecasts, and clear funding purpose improve approval odds.
- Our role: We match established businesses to finance providers; we do not lend directly.
- Compliance: Finance is subject to status, affordability, and lender criteria.
About Best Business Loans
BestBusinessLoans.ai is an independent introducer that helps UK companies explore commercial finance options through AI matching and a trusted network. We do not claim to have every lender or to find the lowest rate every time; our goal is to help you find relevant providers quickly and transparently.
Updated: October 2025
Next step
Ready to explore options for your established business? Submit a Quick Quote to check potential eligibility and get introduced to suitable providers.