What minimum trading history or turnover do manufacturers need to qualify?

Short answer: typical lender minimums for UK manufacturers

Most mainstream lenders prefer manufacturers to have at least 12 months’ trading history and a minimum annual turnover of £100,000–£250,000, but the exact thresholds vary by finance type and provider. Asset-backed products (like equipment finance) can be available from 6–12 months, while unsecured term loans and revolving credit facilities often expect 12–24 months and stronger revenues. Invoice finance usually requires consistent B2B invoicing and a typical monthly invoice value of £25,000–£50,000 or more.

These are common guide rails rather than hard rules. Best Business Loans doesn’t supply loans; we introduce established UK manufacturing firms to suitable lenders or brokers who can assess eligibility against their current criteria.

How lenders judge “minimum trading history” and “turnover” in manufacturing

Lenders set minimum trading history and turnover to gauge stability, affordability, and operational maturity. In the manufacturing sector, they also consider order books, supplier terms, and customer concentration due to longer production and payment cycles.

Trading history shows resilience across seasonal cycles and input price changes. Twelve months is a frequent threshold for unsecured facilities, while six months can be enough for certain asset finance arrangements where the financed machinery provides security.

Turnover is used to scale affordability and credit limits. Facilities like revolving credit lines and invoice discounting are often sized as a percentage of annual revenues or outstanding receivables.

Trading history expectations at a glance

• 6–12 months: Often acceptable for asset finance and some equipment hire purchase or leasing, especially with deposits or personal guarantees.
• 12–24 months: Typical for unsecured loans and revolving credit, with stronger acceptance at two sets of filed accounts.
• Case-by-case: Invoice finance may onboard younger manufacturers if debtor quality, contracts, and processes are strong.

Turnover thresholds explained

• £100,000–£250,000: Common entry band for unsecured term loans and cardless working capital lines.
• £250,000–£2,000,000+: More typical for revolving credit, larger asset finance, and multi-facility working capital structures.
• Monthly invoices £25,000–£50,000+: A frequent baseline for invoice finance, subject to customer quality and dilution risk.

Typical eligibility by finance type (manufacturing focus)

The most relevant funding routes for manufacturers include unsecured working capital, equipment and asset finance, invoice finance, and specialist revolving credit. Each route has different minimums and evidential requirements.

Indicative ranges below are for established UK businesses and can change with market conditions. A suitable lender or broker will always confirm current criteria before any application proceeds.

Finance Type	Typical Minimum Trading History	Indicative Turnover/Volume	Notes for Manufacturers
Unsecured Term Loan	12–24 months	£100k–£250k annual turnover+	Stronger approvals with two filed accounts and positive cash flow.
Revolving Credit Facility	12–24 months	£250k–£1m+ annual turnover	Limits often linked to revenue; robust management accounts expected.
Asset Finance (HP/Lease)	6–12 months	No rigid minimum if asset quality is strong	Asset acts as security; deposits and guarantees may reduce risk.
Refinance (Asset Refinance)	6–12 months	Case-by-case	Releases equity from owned plant and machinery to boost cash flow.
Invoice Finance (Factoring/Discounting)	6–12 months	£25k–£50k+ monthly invoices	Ideal for manufacturers invoicing B2B on 30–90 day terms.
Growth Guarantee Scheme-backed loans	12–24 months typical (lender-led)	Lender-set; often £100k–£2m revenue+	Government-backed guarantee to the lender; normal checks still apply.

Unsecured vs secured for factories and fabricators

• Unsecured finance generally expects longer trading history and stable profitability.
• Secured options like asset finance can flex for younger firms because the kit provides collateral.
• Blended strategies often combine invoice finance with equipment leasing for smoother working capital.

Where turnover matters most

• Revolving credit: Revenue drives facility size and renewal decisions.
• Invoice finance: Debtor quality, concentration, and dispute rates are as important as volume.
• Asset finance: Asset type, age, and resale values can outweigh headline turnover.

When you don’t yet meet the minimums — practical workarounds

Not every manufacturer has two years of accounts or seven-figure turnover. Lenders can still consider deals when risks are mitigated by assets, contracts, or guarantees.

Asset-led facilities are a common path for sub-12 month firms to build track record. As repayments are made and management accounts improve, unsecured options typically open up.

If your turnover is below common thresholds, staged funding can pair small equipment leases with selective invoice finance against specific customers or purchase orders.

Risk mitigants lenders may accept

• Deposits or advance rentals on equipment, reducing exposure from day one.
• Personal guarantees from directors with clean credit files and property ownership.
• Security over machinery, vehicles, or receivables that retain predictable value.

Signals that help younger manufacturers qualify

• Signed supply contracts or framework agreements with established customers.
• Evidence of compliant quality systems (e.g., ISO certification) and safety processes.
• Stable gross margins despite input cost fluctuations, supported by management accounts.

Alternative paths if you’re close but not quite there

• Start with a smaller facility and request limit increases after three to six clean months.
• Use invoice finance selectively on your best debtors to reduce concentration risk.
• Refinance owned assets to lower-cost capital before applying for unsecured working capital.

Documents and metrics that strengthen manufacturing applications

Eligibility is about more than hitting a turnover figure or a trading-history line. Lenders decide on completeness, credibility, and consistency of financial and operational evidence.

Well-prepared files speed decisions and can improve terms. Manufacturers who can evidence order books and margin control usually present as lower risk.

A clean, current set of documents also reduces the need for repeated information requests later.

Your manufacturing finance checklist

• Last 12–24 months’ full accounts and the latest management accounts with aged debtors/creditors.
• Six months’ business bank statements showing cash flow and supplier payments.
• Top customer list with concentrations, average payment terms, and dispute history.
• Asset register and any ownership/encumbrance details for machinery and vehicles.
• Key contracts, framework agreements, purchase orders, or pipeline summaries.
• Brief note on production capacity, lead times, and contingency for input cost volatility.

Operational and financial metrics lenders pay attention to

• Gross margin stability and variance versus material and energy costs.
• Days Sales Outstanding (DSO) and stock turns impacting working capital needs.
• EBITDA trend, interest cover, and net leverage if existing borrowings are in place.

Quality-of-earnings signals in manufacturing

• Repeat orders from blue-chip or long-standing B2B customers.
• Low warranty claims and quality failures, backed by service records.
• Evidence of costed BOMs and robust pricing discipline.

Eligibility checks, FAQs, and next steps

If you’re unsure whether your trading history or turnover meets current lender criteria, an eligibility check can save time. Our AI-driven platform introduces manufacturers to suitable providers based on your profile and funding purpose.

We don’t offer loans directly; we act as an independent introducer. Submitting a Quick Quote is free, there’s no obligation, and you stay in control throughout.

For sector-specific guidance and funding routes tailored to makers and fabricators, see our page on manufacturing business loans.

Quick FAQs: minimums for UK manufacturers

Do I need 12 months’ trading to qualify? Many lenders prefer at least 12 months, but asset finance and invoice finance may consider 6–12 months with the right mitigants and documentation.

Is there a hard minimum turnover? Unsecured lenders often look for £100,000–£250,000 per year, while invoice finance looks at monthly invoice volumes of £25,000–£50,000+. Asset finance can be flexible where the asset is strong.

Can I qualify if I had a tough year? Possibly, if you can show recovery in management accounts, resilient gross margins, and a credible order book. Lenders may adjust limits or pricing rather than decline outright.

What helps if I’m just under the thresholds? Start with secured or asset-led facilities, offer a deposit, consider a personal guarantee, and build a short track record before stepping into unsecured working capital.

Will one big customer concentration be a problem? High concentration can be a risk. Provide evidence of payment performance, contracts, and contingency plans to reassure lenders.

How to prepare for a smooth eligibility check

• Write a short funding rationale with clear use of funds and expected ROI or savings.
• Prepare current management accounts and your top debtor report.
• Outline any recent capital investments and their productivity gains.

Key takeaways

• 12 months’ trading and £100,000–£250,000 turnover are common thresholds, but not absolute.
• Asset finance and invoice finance often help younger manufacturers qualify sooner.
• Strong documents, steady margins, and quality customers improve outcomes and terms.
• Start with the right product for your stage, then scale as your track record grows.

Get an instant, no-obligation eligibility view

Complete a Quick Quote to be introduced to relevant lenders or brokers for your circumstances. It takes minutes, is free, and won’t commit you to proceed.

We aim to match UK manufacturers with providers actively lending in your sector, so you can compare options and choose what fits your cash flow.

Best Business Loans operates as an introducer. We make no guarantees of approval or rate, and eligibility is subject to provider criteria, credit checks, and affordability.

Important information and fair, clear, not misleading notice

• Best Business Loans is an independent introducer and does not offer loans directly or provide financial advice.
• Any figures or criteria on this page are indicative and subject to change by the respective finance providers.
• Eligibility, pricing, and terms depend on your business profile, credit status, and the product selected.
• Please consider professional advice if you’re unsure which funding route is appropriate.