Lendus.

Start up business loans

Can a new business get a loan?

Yes, but the options narrow sharply below two years of trading. Mainstream lenders assess filed accounts, which a new business does not have, so early-stage funding usually comes from the government-backed Start Up Loans scheme, from lenders that decision on live bank transaction data rather than accounts, or from asset finance where the equipment itself provides the security. Personal guarantees are close to universal at this stage.

Updated . Lendus is an introducer, not a lender.

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How it works

  1. 01 You set out what the business will do and how it will generate income, usually in a business plan with financial forecasts.
  2. 02 Because there are no filed accounts, the lender assesses you as much as the business: your experience, your personal credit file and any capital you are putting in.
  3. 03 Government-backed Start Up Loans are personal loans to the founder rather than lending to the company, so the founder is directly liable.
  4. 04 Funds are drawn and repaid in fixed monthly instalments, commonly over one to five years.

What lenders typically look for

What to watch for

Startup funding is where personal and business liability blur most. Government-backed Start Up Loans are personal borrowing in the founder's own name, so the debt follows you even if the company fails. Understand which you are signing before you sign it.

Lenders on our panel

Lender Facility size Published rate Minimum trading
Aldermore Bank £2k–£10m 4.5%–20% 12+ months for most products
Allica Bank £25k–£15m 9.90%–13.75% 3+ years of filed accounts for unsecured business loans; 2+ years of financial accounts for commercial mortgages
Bibby Financial Services £50k–£15m 1%–3% 6+ months preferred; startups with strong order books considered
Bizcap £10k–£500k 1.5%–5% At least 4 months
Capify £4k–£500k 1.1–1.5 4+ months for merchant cash advance; 6+ months for business loan
Capital on Tap £1k–£250k 1.25%–3% 12+ months
Close Brothers £10k–£5m 5%–18% 24+ months
Cynergy Business Finance £200k–£40m Not published Not publicly stated by Cynergy Business Finance. Eligibility appears to be assessed on the strength of the underlying receivables, stock, property or other assets on a per-business basis rather than against a published minimum years-trading threshold.
Fleximize £5k–£500k 0.9%–3.9% 6+ months
Funding Circle £10k–£500k 6.9%–36% 1+ year
Investec £5k–£100m Not published Not publicly stated. Investec assesses each business individually rather than publishing a minimum trading history requirement.
iwoca £1k–£500k 2%–6% 3+ months
Kriya £50k–£1m Not published Minimum 12 months trading with at least one set of financial accounts filed for invoice finance and working capital loans. Kriya's PayLater product has a lower minimum of 3 months trading.
LendingCrowd £25k–£500k 6%–18% 24+ months
Nucleus Commercial Finance £3k–£2m 1.5%–5% 6+ months
OakNorth Bank Not published Not published No fixed minimum published; trading history is one of several factors assessed case-by-case
Paragon Bank £5k–£1m Not published Not publicly stated; assessed as part of underwriting.
Shawbrook Bank £50k–£25m 0.55%–1.25% 12+ months preferred; none required for property-backed bridging
Start Up Loans £1k–£25k 7.5%–7.5% For start-ups: no trading history required. For existing businesses: must have been trading less than 60 months
ThinCats £1m–£30m Not published Not stated as a fixed minimum number of years; ThinCats lends to established mid-sized SMEs rather than start-ups or very early-stage businesses.
Tide £1k–£500k 7.9%–49.9% 12+ months for credit products; account available from day one
White Oak UK £5k–£500k Not published Not publicly stated; assessed as part of underwriting.

As published by each lender and dated on its own page. Indicative, not offers.

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Frequently asked questions

Can I get a business loan with no trading history?
Yes, but the options are narrow and the assessment shifts onto you personally. Without filed accounts a lender cannot assess the business, so it assesses the founder: personal credit history, relevant sector experience, and whether you are investing your own capital. The main routes are the government-backed Start Up Loans scheme, lenders that decision on live bank data once some trading has begun, and asset finance where the equipment being bought provides the security.
How much can a new business borrow?
Considerably less than an established one, and the government scheme is explicitly capped per applicant with a higher ceiling where several co-founders each apply. Commercial lenders willing to fund early-stage businesses typically start small and increase limits as trading history builds. Asset finance is often the exception, because the machine or vehicle being purchased provides security regardless of how long the company has traded.
Do I need a business plan?
For the government-backed scheme and for most bank lending, yes, and it is assessed rather than filed. Lenders want to see how the business makes money, what the money will be spent on, and a cash flow forecast showing the repayments are affordable. Alternative lenders decisioning on live bank data care less about the plan and more about actual transactions, but that route only opens once you have been trading for a few months.
Is a Start Up Loan a business loan?
Legally it is a personal loan made to the individual founder, not lending to the company, even though it is used for business purposes. That matters: the founder is personally liable for the full amount whatever happens to the business, and the debt does not disappear if the company is dissolved. It also means it does not require a personal guarantee, because it is already personal borrowing.
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