Can I get business finance with only three months trading?

Yes, but typically with specialist products. Merchant cash advance providers and some invoice finance lenders may consider 3–6 months of trading where card sales or B2B invoices are consistent and verifiable.

Do I need to be profitable to qualify?

Profitability helps but is not always essential. Lenders prioritise affordability, looking at bank conduct, margins, and cash flow coverage of repayments on realistic assumptions.

How do lenders verify turnover and trading history?

Lenders assess bank statements (typically 3–12 months), management accounts, filed accounts, VAT returns, and where applicable, aged debtor/creditor reports and card settlement statements.

How can I improve eligibility if I’m short on history or turnover?

Strengthen bank conduct, prepare up-to-date management accounts and cash flow forecasts, provide evidence of future income (contracts/POs), reduce debtor concentration, consider secured or asset-backed options, and start with a modest facility before stepping up.

What minimum trading history or turnover do lenders expect?

Q: What minimum trading history or turnover do lenders expect in the UK?

Most mainstream lenders prefer at least 12 months’ trading and annual turnover of £100,000–£250,000 for standard unsecured loans. Some products, such as merchant cash advances and certain invoice finance facilities, can consider 3–6 months if revenue is consistent and affordability is clear.

Q: What monthly turnover do lenders look for?

For unsecured lending, many lenders look for £8,000–£25,000+ in monthly revenue, scaling with facility size. Merchant cash advance providers often start from £5,000–£10,000 in monthly card settlements, while invoice finance focuses on debtor quality and ledger volume rather than a single turnover number.

The short answer on minimum trading history and turnover

Most UK business lenders prefer at least 12 months’ trading and annual turnover of £100,000–£250,000 for standard unsecured loans and revolving credit. Some providers can consider businesses with 3–6 months’ trading if revenue is stable and the product is lower risk, such as merchant cash advance or certain types of asset and invoice finance. Lenders also test affordability by reviewing recent bank statements, margins and cash flow, not just time trading and headline turnover.

Expectations vary by funding type, sector and credit profile. Asset-backed facilities and invoice finance often accept shorter histories because the asset or debtor book mitigates risk. Unsecured term loans usually need more time in business, stronger cash generation and cleaner credit.

Turnover thresholds are typically expressed as monthly revenue. Many lenders want to see £8,000–£25,000+ per month for unsecured lending, while merchant cash advance providers often look for £5,000–£10,000+ in monthly card sales.

If you are slightly short on history or turnover, a higher deposit, tangible security, or a stronger personal guarantee can improve eligibility. Clear documentation, reliable forecasting, and stable cash inflows also carry weight with underwriters.

Best Business Loans does not lend directly. We help established UK businesses get matched with lenders and brokers whose criteria align with your trading history, turnover and sector.

Minimums by finance type — what lenders commonly ask for

Every finance product has a different risk profile, so underwriting criteria differ. The summary below reflects common UK market expectations in 2024–2025 and may vary by lender.

Finance type	Typical minimum trading history	Typical turnover expectation	Notes
Unsecured term loan	12–24 months	£100k–£300k p.a. (c. £8k–£25k+ per month)	Clean bank conduct, stable margins and PG often required.
Revolving credit / overdraft alternative	6–12 months	£150k+ p.a. where limits are higher	Regular inbound receipts and low returned items help.
Merchant cash advance	3–6 months	£5k–£10k+ monthly card sales	Repay via card takings; suited to hospitality and retail.
Invoice finance (factoring/discounting)	3–6 months invoicing history	£50k–£250k+ annual ledger	Debtor quality and concentration are key approval drivers.
Asset finance (HP/lease)	6–12 months	Aligned to asset value and affordability	Asset acts as primary security; deposits improve terms.
Vehicle & fleet finance	6–12 months	Aligned to vehicle cost and use	Business credit, insurance and usage evidence required.
Growth Guarantee Scheme loans	Often 24+ months with many lenders	Up to £45m turnover eligible (lender-specific)	Government-backed guarantee to the lender, not the borrower.
Refinance / consolidation (non-property)	12+ months	Enough to demonstrate serviceability	Existing agreements and payment history assessed closely.

Unsecured term loans and revolving credit

For standard working capital loans, lenders often want at least a full year’s trading, with 18–24 months preferred for larger amounts. Profitability or at least clear path-to-profit helps, especially if leverage will rise.

Revolving credit facilities can be more flexible if bank statement conduct is strong. Lenders look at inflow frequency, returned items, average balances and seasonality.

Invoice finance and asset-backed options

Invoice finance can be accessible earlier because the facility is secured against receivables. Lenders focus on debtor quality, concentration risk, disputes and credit terms.

Asset finance depends on the asset, resale strength and business stability. Deposits and warranties improve eligibility and may reduce the rate.

Merchant cash advance

Providers look for consistent card settlements and a card terminal history. Industries with steady card turnover can qualify from three months onward.

Repayments flex with sales, which can suit seasonal businesses if affordability is sensible.

Growth Guarantee Scheme (GGS)

GGS is delivered by accredited lenders who set their own criteria. Many want two years’ filed accounts and strong bank trading evidence.

Approval still depends on affordability and credit profile. The guarantee supports the lender, not the borrower.

Beyond time trading — how lenders really assess your case

Time in business and turnover are entry gates, not the whole story. Underwriters assess stability, cash generation and resilience under stress.

The factors below often influence decisions more than a raw turnover figure, especially for borderline cases.

Bank statements and cash flow conduct

Lenders typically review 3–12 months of business bank statements. They assess bounced items, late payments, reliance on overdraft and average daily balances.

Regular inbound receipts, timely supplier payments and low volatility score positively. Evidence of recent growth, if backed by contracts or orders, may offset shorter trading history.

Margins, cost control and affordability

Gross margin, overhead stability and debt service coverage matter. Many lenders target a debt service coverage ratio above 1.2x–1.5x on realistic stress cases.

They will test scenarios such as lower sales or higher input costs. Reliable management accounts and sensible forecasts help underwriters get comfortable.

Credit profile and sector risk

Business and director credit files are reviewed for CCJs, arrears and utilitisation. Minor historic blips can be mitigated with strong recent conduct and explanations.

Sector outlook matters, especially in construction, hospitality and transport. Lenders may apply different minimums in higher-risk segments or where supply chain risk is elevated.

Security, guarantees and documentation quality

Personal guarantees are common on unsecured lending to SMEs. Tangible security or a deposit can relax minimum trading or turnover thresholds.

Clean, well-structured financials improve decision speed. Expect to provide ID, bank statements, accounts, VAT returns, contracts or aged debtor/creditor reports as applicable.

Practical ways to improve eligibility if you’re light on history or turnover

There are practical steps that can lift your case even if you are slightly under typical thresholds. The aim is to evidence predictability, resilience and responsible management.

Steps that can help right now

Tighten bank conduct for 8–12 weeks: avoid returned items and keep balances positive.
Prepare up-to-date management accounts and a 12-month cash flow forecast with assumptions.
Evidence future income: signed contracts, purchase orders, frameworks or recurring revenue schedules.
Reduce debtor concentration and chase overdue invoices before applying.
Consider a modest facility first, then step up after six months of proven repayment.
Offer security or a deposit where sensible to de-risk the proposal.
Choose a product aligned to your trading profile, such as invoice finance for B2B on terms.

Example scenarios

A wholesaler with eight months’ trading and £90k monthly sales may secure invoice finance by showing a clean aged debtors report and creditworthy customers. The lender relies on the receivables rather than length of trading alone.

A restaurant with five months’ stable card takings above £12k per month could obtain a merchant cash advance. The repayment flexes with daily sales, supporting affordability in quieter weeks.

Common pitfalls to avoid

Submitting incomplete statements or out-of-date accounts that raise avoidable queries.
Applying for a large unsecured loan before cash flow can clearly service repayments.
Over-reliance on one customer, creating concentration risk with limited contracts.
Ignoring seasonality in forecasts, which undermines credibility under stress testing.

If you’re unsure which route suits your profile, complete a Quick Quote and our matching engine will prioritise providers aligned to your trading history. There is no obligation to proceed after seeing your options.

FAQs, compliance and next steps

Can I get business finance with only three months of trading?

Yes, but options are narrower and depend on strong revenue evidence. Merchant cash advances and some invoice finance facilities can be available from 3–6 months with consistent card sales or B2B invoices.

Most unsecured term loans still prefer at least 12 months, and often more for higher amounts.

What monthly turnover do lenders look for?

For unsecured lending, many lenders look for £8,000–£25,000+ in monthly revenue, increasing with facility size. Merchant cash advance providers often start from £5,000–£10,000 in monthly card settlements.

Invoice finance focuses more on the quality and volume of your debtor book than a single turnover threshold.

Do I need to be profitable?

Profitability helps but is not always essential if you can evidence affordability. Lenders will look at gross margin, overheads and cash flow coverage of repayments.

Early-stage growth businesses with improving results can sometimes qualify with strong bank conduct and forecasts.

What counts as “trading history” to a lender?

Trading history is evidenced by bank statements, invoices, management accounts and filed accounts. Most lenders want to see real trading activity, not just company incorporation.

VAT returns and aged debtor/creditor schedules are often requested to corroborate figures.

How can I estimate eligibility for a £50,000 facility?

As a rule of thumb, lenders often assess affordability so that repayments fit within predictable cash flow. Many unsecured providers would prefer 12–24 months’ trading and monthly revenue above £15,000, though criteria vary widely.

Invoice or asset-backed solutions may offer a similar limit earlier if collateral and contracts are strong.

Where can I compare options suited to smaller, established firms?

Explore our guide to small business loans for an overview of products and eligibility considerations. You can also submit a Quick Quote for tailored introductions to relevant providers.

Important information, fairness and risk warnings

Best Business Loans is an independent introducer, not a lender, and does not provide financial advice. Eligibility, rates and terms are set by the finance providers you are introduced to, and approvals are subject to status, credit checks and affordability assessments.

All information on this page is for general guidance only and may change. Any examples are illustrative and not a commitment to lend.

Why match through Best Business Loans?

We use data-led matching to connect established UK businesses with lenders and brokers whose criteria fit your trading profile. That can save you time approaching providers that are unlikely to consider your case.

Submit a Quick Quote to see potential routes without obligation. Your details are handled securely and shared only with relevant finance professionals.

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Tell us what you need, share a few details, and we’ll highlight introductions that fit your history and turnover. It’s fast, secure and free to enquire.

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About Best Business Loans

BestBusinessLoans.ai helps UK companies navigate commercial finance using AI-supported matching and a trusted network of lenders and brokers. We don’t offer loans directly; we help you find relevant options and make informed choices.

Updated: October 2025. For questions, email hello@bestbusinessloans.ai.

Key takeaways

Unsecured loans often require 12–24 months trading and £100k–£250k turnover.
Products like merchant cash advance and some invoice finance can consider 3–6 months with strong evidence.
Lenders judge affordability via bank conduct, margins and forecasts, not turnover alone.
Security, deposits and clean documentation can offset shorter histories.
Submit a Quick Quote to be matched with providers aligned to your profile.