What minimum trading history do lenders typically require?

Most lenders expect between 6 and 24 months of trading depending on the product, with many mainstream lenders preferring 12+ months.

What turnover do lenders look for?

Turnover requirements vary by product and lender; many facilities start at £100k–£250k, while larger loans generally require £500k–£1m+.

How can I improve my eligibility?

Prepare clear management accounts, show predictable cashflow, use asset-backed options if appropriate, and submit a Quick Quote to match with suitable lenders.

What are the minimum trading history and turnover requirements?

Short answer

Minimum trading history and turnover requirements vary by lender and product, but most UK commercial funders expect an established business trading for at least 6–24 months and an annual turnover that matches the risk profile of the finance type. Lenders focus on sustainable revenue, sector stability and the quality of contracts or assets behind the application rather than one single number.

Why trading history and turnover matter to lenders

Lenders use trading history to judge whether a business can sustain repayments and manage growth. Short trading history increases uncertainty, so lenders usually require more documentation or higher margins for newer firms.

Turnover signals the scale of operations and a business’s ability to service debt; higher, predictable turnover reduces lender risk. Lenders also consider seasonality, margins and the concentration of revenue when interpreting turnover figures.

Regulatory and compliance checks, such as those referenced by the FCA and industry guidance, mean lenders must be able to verify income and trading records. This verification often determines which finance products are practical for a borrower.

Typical minimum trading history thresholds by product

Invoice finance and asset finance lenders commonly accept businesses trading for 12 months or more. Some specialist asset funders will consider 6–9 months’ trading if there are strong purchase orders, contracts, or existing assets as security.

Unsecured or short-term cashflow loans generally require 12–24 months’ trading and clearer bank transaction histories. High-value or longer-term facilities such as growth funding or refinancing often need 2+ years of consistent trading records.

Some brokers and alternative lenders will consider newer businesses with solid management experience, demonstrated cash reserves, or credible pipeline contracts. Each case is assessed on its facts, so exceptions are possible when risks are mitigated.

Typical turnover ranges and how they affect eligibility

Turnover requirements vary strongly by product and lender appetite. For example, invoice finance is more accessible to B2B firms with modest turnover (often from £100k+ annual sales), while asset finance can be considered for firms with lower turnover if assets provide security.

For working capital or medium-term term loans lenders commonly look for annual turnover starting around £150k–£250k, rising for larger facilities. Larger commercial lenders and banks often expect turnover in the £500k–£1m+ range for standard loan approvals.

Sector norms matter: manufacturers, logistics and vehicle fleets usually have higher turnover expectations than small professional services firms. If you’re unsure how your turnover compares with market expectations, our platform can match you to providers with appropriate acceptance criteria.

For example, businesses seeking equipment or machinery may prefer specialised funding — learn how asset-backed solutions can work for different turnover profiles on our asset finance page: https://bestbusinessloans.ai/loan/asset-finance/.

What lenders look for beyond the headline numbers

Consistency of revenue is as important as absolute turnover; regular month-on-month sales reduce perceived risk. Lenders review bank statements, management accounts, VAT returns and debtor ageing to verify true trading performance.

Profitability, gross margins and cash conversion are critical metrics; high turnover with low margins or late-paying customers can still cause rejection. Lenders also assess owner/director track record, personal credit, related-party transactions and historic relationships with suppliers and customers.

Security and collateral change the equation. Asset finance and invoice discounting often accept lower turnover if the underlying asset or invoices provide clear recovery value. Government-backed schemes or guarantees can widen eligibility for firms that meet scheme rules.

How to improve eligibility and next steps

Improve your application by preparing clear, up-to-date management accounts and a two-year cashflow forecast. Consolidate bank statements, show regular deposit patterns and be ready to explain any anomalies such as one-off sales or seasonal dips.

Increase your chances by securing supporting documentation: signed contracts, long-term purchase orders, or client references that evidence future revenue. Consider asset-backed options if turnover is low but the business owns valuable equipment or vehicles.

If you want a rapid assessment, submit a Quick Quote through Best Business Loans to get matched with lenders or brokers who specialise in your sector and company size. Our platform helps you avoid unsuitable lenders and speeds up decision-making.

Key takeaways

Minimum trading history typically ranges from 6–24 months depending on product and risk profile.
Turnover expectations vary widely: some specialist products accept modest turnover, while mainstream lenders prefer £250k–£1m+.
Lenders consider consistency, margins, contracts and collateral alongside raw turnover figures.
Good documentation and targeted product selection improve approval chances.
Use Best Business Loans’ Quick Quote to check your eligibility and connect to lenders who match your business profile.

Frequently asked questions (short answers)

Do start-ups qualify if they have only a few months’ trading?

Most traditional lenders require longer trading histories, but specialist funders or brokers may consider shorter histories if there are strong contracts, experienced directors, or asset security. Best Business Loans can identify lenders open to newer trading profiles.

Can turnover be proven with management accounts rather than annual accounts?

Yes — many lenders accept recent, well-prepared management accounts, VAT returns and bank statements. The more recent and verifiable the figures, the stronger your position.

Will a director guarantee or personal security help if turnover is low?

Personal guarantees and director security can improve approval chances, but they also transfer risk to individuals; lenders weigh these against the company’s trading strength. Seek independent advice before offering personal security.

How Best Business Loans helps

We don’t provide loans; we match your business with lenders and brokers whose criteria align with your trading history and turnover. Our AI-driven matching reduces time spent searching and increases the chance of receiving relevant offers.

Start a Quick Quote to get a fast, confidential eligibility check and Decision in Principle. It’s free, no obligation and helps lenders assess your situation without multiple full applications.

Need a quick, free eligibility check? Complete our Quick Quote now and get matched to lenders or brokers who actively support businesses with your trading history and turnover profile. No obligation — just better matches.