What minimum trading history do business lenders usually require in the UK?

Most unsecured lenders prefer 12–24 months of trading, while invoice finance and merchant cash advance can be available from 3–6 months if revenue is verifiable. Asset finance may work from 6–12 months where the asset provides strong security and affordability is clear.

What turnover do I need to qualify for a business loan?

A common baseline for unsecured loans is £100k–£250k annual turnover, with higher limits typically from £250k–£1m+. Merchant cash advance providers often look for £5k–£10k+ monthly card takings. Invoice finance is driven by the size and quality of your debtor book.

What credit profile do providers look for?

Providers assess business payment behaviour, public records and director credit. Clean or minor-adverse profiles are often acceptable if affordability is strong. Personal guarantees are common for unsecured borrowing, and adverse credit may be mitigated by strong cash flow or asset security.

Can I get finance with less than 12 months’ trading?

Yes, certain products such as invoice finance and merchant cash advance can be accessible from 3–6 months if you can evidence stable card takings or reliable invoices. Criteria vary, and not all providers support very early-stage businesses.

Which documents will lenders ask for?

Expect recent business bank statements (3–6 months), filed or management accounts, VAT returns, and details of existing finance. Product-specific items include aged debtor reports for invoice finance and supplier quotes for asset finance.

What minimum trading history, turnover or credit profile do providers usually require?

Short answer: the minimums most UK providers look for

Most mainstream business finance providers want at least 12 months’ trading, £100k+ annual turnover, and a fair credit profile for directors and the business. Specialist options can be available from 3–6 months’ trading if revenue is stable and card sales or invoices can be verified. Requirements vary by product, sector risk and security, so matching the right finance type to your profile is key.

Updated: October 2025.

The essentials at a glance

Typical minimum trading history by finance type

Unsecured business loans often require 12–24 months’ trading and evidence of consistent cash flow. Asset finance may accept 6–12 months if the asset holds strong resale value and affordability is clear. Invoice finance can consider 3–6 months if you sell B2B on credit terms to UK customers with reliable debtor quality.

Merchant cash advance providers commonly look for 3–6 months’ card takings with steady transaction volumes. Growth Guarantee Scheme and bank-originated loans often prefer 2+ years’ filed accounts and stronger credit fundamentals. Working capital lines and revolving credit facilities usually require 12 months’ trading with monthly bank statements that support affordability.

Typical turnover thresholds

Many unsecured lenders look for £100k–£500k annual turnover depending on the loan size. Merchant cash advance providers may accept £5k–£10k+ monthly card takings as a baseline. Invoice finance is driven by your debtor book value, invoice volume and concentration, not just headline turnover.

Asset finance thresholds are more flexible because the asset acts as security. Larger facilities and multi-lender syndications often start at £250k–£1m annual revenues with stronger financial controls. Seasonal sectors may be assessed over a 12-month cycle to reflect peaks and troughs.

Credit profile expectations

Providers consider business credit signals (payment history, CCJs, filing behaviour) and director credit (electoral roll trace, defaults, utilisation). Many lenders can work with “near-prime” or light adverse if affordability is strong and recent performance is stable. Personal guarantees are common for unsecured facilities and early-stage businesses without tangible security.

Affordability and resilience under modest stress tests matter as much as credit score. Bank statements, management accounts and VAT returns help evidence recent performance. Lenders will avoid claims that are unfair, unclear or misleading, and assessments remain case-by-case.

Minimum trading history by finance type

Unsecured term loans

Most unsecured lenders prefer 12–24 months’ trading with turnover above £100k and clean or minor-adverse credit. They will review 3–6 months’ business bank statements and recent management accounts. Personal guarantees are usual, with debentures at higher values.

Asset finance (hire purchase, finance lease)

Because the asset secures the facility, some funders can help from 6–12 months’ trading. Stronger cases show stable cash flow and asset criticality to operations. Deposit size and asset resale value can offset shorter history.

Invoice finance (factoring, discounting)

Facilities can be available from 3–6 months if you sell B2B on credit terms with a reliable debtor book. Funders will examine debtor concentration, dispute rates, and debtor quality. Aged debtor reports and sample invoices are typically required.

Merchant cash advance

Many providers accept 3–6 months’ card processing history and consistent daily card receipts. Turnover thresholds often start around £5k–£10k per month in card sales. Repayments flex with takings, so affordability is tied to transaction flow rather than fixed instalments.

Revolving credit and overdraft-style lines

Expect 12 months’ trading and evidence of regular inflows and prudent cash management. Lenders assess average balances, bounce frequency and returned items. Facilities scale with turnover and transaction behaviour.

Government-backed or bank-originated loans

These often prefer 2+ years’ accounts, positive net worth, and stable profitability. Some lenders may consider exceptions where projections and management capability are strong. Security and guarantees may still be requested.

Sector notes

Construction, hospitality and transport can be funded, but criteria reflect sector risk and payment patterns. Sub-contracting, stage payments and retentions can influence facility type and limits. If you operate in trades, see our guide to building services loans for sector-specific considerations.

Turnover and affordability expectations

What revenue levels do providers look for?

For smaller unsecured loans, £100k–£250k annual turnover is a common entry point. For larger loans or lines, £250k–£1m+ helps support higher limits and sharper pricing. Merchant cash advance providers focus on monthly card takings, often from £5k–£10k upwards.

Invoice finance considers your rolling debtor book and monthly billings. Asset finance may be available below £100k turnover where the asset is essential and affordable. Revolving credit is tied to cash cycle needs and statement behaviour.

How affordability is assessed in practice

Lenders model repayment coverage using net cash flow, margins and seasonality. Many assess affordability at 1.2x–1.5x coverage under mild stress tests. Bank statements are used to validate day-to-day headroom and volatility.

Expect scrutiny of existing commitments, HMRC payment plans and one-off shocks. Providers will ask about near-term pipeline and contract renewals. Clear explanations and supporting documents can help marginal cases.

Important: fair, clear and not misleading

All figures are indicative and not an offer of credit. Eligibility and pricing are set by the finance provider, based on a full assessment. We aim to present requirements clearly so you can make an informed decision.

Turnover vs. loan size rules of thumb

Short-term unsecured loans often cap around 10%–20% of annual turnover. Merchant cash advance limits usually track one month’s average card takings multiplied by a factor set by the funder. Invoice finance drawdowns are a percentage of eligible invoices (often 70%–90%).

Asset finance facility size relates to asset cost, deposit, and residual value. Exceptions exist where security or guarantees de-risk the case. Always consider cash flow impact alongside headline limits.

Credit profile providers usually require

Business credit health

Positive filing behaviour, on-time supplier payments, and no recent CCJs are favourable signals. Small CCJs can sometimes be accepted if satisfied and well explained. Public record checks and trade references may be used for corroboration.

Director credit and guarantees

Directors’ personal credit scores, stability on the electoral roll, and controlled utilisation matter. Lenders expect transparency on historic defaults, IVAs or bankruptcies. Personal guarantees are common for unsecured loans, with higher scrutiny for larger exposures.

Adverse credit: what can still work

Near-prime lenders may accept minor adverse if performance is improving. Invoice finance and merchant cash advance can tolerate more blemishes where repayments are linked to verified receivables or takings. Asset finance can proceed if the asset is strong and affordability is clear.

Unsatisfied CCJs, recent missed HMRC liabilities, and undisclosed arrears can stop a case. Clear explanations, evidence of remediation, and improved recent bank conduct help. Soft-search prechecks may be used before any hard search is performed.

Security and collateral

Assets, debentures and personal guarantees reduce lender risk and can improve terms. Property security is less common for non-mortgage lending but may be considered for larger cases. Insurance, maintenance and asset criticality can strengthen proposals.

Sector and compliance considerations

Providers assess licensing, safety, and regulatory adherence in sensitive sectors. Cash-intensive businesses may face enhanced AML and KYC checks. Customer concentrations and export markets can affect eligibility and pricing.

Documents, quick wins, and next steps

What documents you’ll usually need

Recent business bank statements (3–6 months) and full filed accounts or management accounts. VAT returns, aged debtor and creditor reports, and a list of existing finance. For asset finance: supplier quotes, asset specs, and insurance details.

For invoice finance: sample invoices, contracts, and debtor concentration details. For merchant cash advance: card processing statements and merchant IDs. ID, proof of address, and corporate documents complete KYC.

Ways to improve eligibility in 30–90 days

Stabilise cash flow: reduce bounced items, smooth payments, and maintain positive end-of-day balances.
Resolve small adverse: settle minor CCJs, agree HMRC time-to-pay, and update credit files.
Tidy accounts: close dormant facilities, align director addresses, and file on time.
Strengthen affordability: trim discretionary costs and evidence recurring income.
Diversify debtors: reduce single-customer reliance and formalise contracts where possible.
Prepare documents: keep statements, VAT returns, and management accounts up to date.

How Best Business Loans can help

We don’t lend money or offer financial advice. We use AI-led matching to introduce you to lenders or brokers whose criteria align with your trading history, turnover and credit profile. It’s free to submit an enquiry, and there’s no obligation to proceed.

Complete a Quick Quote to check indicative eligibility and likely product fit. You’ll save time compared with contacting multiple providers individually. Any quotes are subject to full underwriting by the provider.

Key takeaways

12 months’ trading, £100k+ turnover and fair credit is a common baseline for unsecured lending.
Options exist from 3–6 months for invoice finance and merchant cash advance if revenue is verifiable.
Asset finance can be flexible on history where the asset provides strong security.
Affordability, recent bank conduct and clear documentation matter as much as headline turnover.
Use our Quick Quote to get matched with suitable providers fast, without obligation.

Compliance note: We aim to be fair, clear and not misleading. Eligibility, rates and terms are set by providers after full assessment, and we do not guarantee approval or the lowest available rate.