How to get a UK business loan in your first year of trading
Most UK SMB lenders set 12 to 24 months minimum trading. Sub-12-month-trading is one of the most common decline reasons. This guide covers the lenders that genuinely engage earlier and what you need to show them.
Director, BestBusinessLoans
Oliver leads BestBusinessLoans's editorial reviews and methodology. With a background in UK commercial finance, he oversees lender research, rate verification and review independence.
Last reviewed: 26 April 2026
Why mainstream lenders decline
Underwriting models lean on year-on-year trading patterns and seasonal trends. Without a full year, the data is too thin for a mainstream credit decision. The lender cannot test whether the business survives a quiet quarter or a bad month.
Lenders that engage with sub-12-month-trading
iwoca is the most flexible mainstream lender; engages from 12 months but considers earlier with strong banking data. Capify accepts MCA applications with as little as 6 months of card-machine history. 365 Business Finance is similar. The British Business Bank Start Up Loan is open to pre-revenue founders.
What sub-12-month applicants need to show
A credible revenue trajectory backed by 6+ months of business bank statements. Card-machine flow if applicable. Director personal credit clean. A clear use of funds tied to revenue growth (stock for an upcoming order, fit-out for a known opening). Pre-orders, contracts or LOIs strengthen the case materially.
Realistic ticket sizes
Sub-£25k for first-year trading is the achievable band on most specialist routes. Above that, you usually need 12+ months trading or a specific scheme (Start Up Loan up to £25k, Growth Guarantee Scheme via accredited lenders for larger).
What to avoid
Multiple applications in close succession (each hard search compounds the problem). Pre-revenue applications without a concrete revenue plan. Asking for a ticket size out of proportion to early trading. "Stretching" the application to fit mainstream criteria you do not actually meet.
FAQ
Can I use my pre-incorporation revenue to qualify?
Some lenders will. If you traded as a sole trader before incorporating and have records to prove it, a few specialist lenders will count that history. Most will not.
Is the Start Up Loan worth it for a £25k ask?
Often yes for first-year trading. 6% fixed APR is competitive even against Funding Circle's headline rate, and the Start Up Loan does not require the 12-month trading history.
Reviewed by Oliver Mackman, Director. Last reviewed: 2026-04-26.