Editorial ranking
Business loans with no trading history: UK options
Editorial UK lender rankings from desk research, post-decline options included. FundBiz does not run a credit check. Where a lender publishes a decision or funding time, it is shown in the ranking below.
Free · 2 mins
Start here · What do you need?
Yes, a business with no trading history can borrow, but the choice is small. From day one, the main option is a Start Up Loan from the British Business Bank: £500 to £25,000 per founder at a fixed 7.5% a year over 1 to 5 years, lent to you personally rather than to your company (GOV.UK). Each owner of a business can apply, up to £100,000 per business (Start Up Loans). iwoca considers new limited companies and LLPs but caps loans at £10,000 until the business has traded for a year. Bizcap needs 4 months of trading, and 365 Business Finance and Fleximize's Flexiloan Lite need 6 months, so none of those three can help on day one. This FundBiz ranking assesses 4 UK lenders for "business loans with no trading history: uk options", weighting primarily on new-business acceptance (40%), decision time (20%), eligibility breadth (20%) (see the full weighted criteria below).
Scores are our own desk-research assessment built from the FCA Register, Companies House filings and each lender's published product criteria, not customer reviews and not paid placement. Lenders don't pay for inclusion or rankings. If you send an enquiry, we pass it to one of the finance partners we work with, and we may be paid by the finance partners we introduce you to, by a fixed fee or commission depending on the partner and the finance arranged. It does not change what you pay.
Source: FundBiz methodology. Editorial by Best Business Loans Ltd (16833937).
New to this? Read how start up business loans work, including personal guarantees and what lenders look at.
Founder & Managing Director, Muswell Rose, FundBiz
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind FundBiz. His background runs through commercial finance, mortgages and fintech, including as managing director of an invoice finance business. He oversees FundBiz's guides and lender reviews.
AI-assisted check
- 1. iwoca
Flexi-loan / line of credit · £1k to £1m (its own figure) · Many customers get an instant decision; larger loans within 24 hours (its own figures)
No published minimum trading period: iwoca says it considers new start-ups, but loans are capped at £10,000 until you have traded for a year. For limited companies and LLPs. Its own site says its business loans require a personal guarantee from at least one company director.
Our assessment: Post-decline acceptance: strong · Transparency: strong.
Read full iwoca review → - 2. Bizcap
Specialist post-decline / fast cash · £5k to £1m (its own figure) · Decision in as little as 3 hours (its own figure)
From 4 months of trading, with at least £12,000 a month in revenue and a UK company registration number (for its Fast and Small Business Loans). An establishment fee is added, so compare the total cost.
Our assessment: Post-decline acceptance: top tier · Transparency: below average.
Read full Bizcap review → -
Merchant cash advance (revenue-based finance) · £10k to £500k (its own figure) · Funds in as little as 24 hours (its own figure)
From 6 months of trading and at least £10,000 a month in card sales, per 365's own FAQ. This is a merchant cash advance, not a loan: you repay a share of card sales plus one fixed cost, so it only suits businesses that take card payments.
Our assessment: Post-decline acceptance: strong · Transparency: average.
Read full 365 Business Finance review → - 4. Fleximize
Term loan with flex features (unsecured and secured options) · £10k to £1m (its own figure) · Decision in as little as 24 hours (its own figure)
Its Flexiloan Lite is for businesses trading 6 months or more, from £10,000, with rates from 1.9% a month. Its standard Flexiloan needs 12 months.
Our assessment: Post-decline acceptance: strong · Transparency: average.
Read full Fleximize review →
Side-by-side comparison
| Lender | Typical rate | Ticket | Decision | Best for | Source | Checked |
|---|---|---|---|---|---|---|
| iwoca | From 1.5% per 30 days | £1k to £1m (its own figure) | Many customers get an instant decision; larger loans within 24 hours (its own figures) | Working capital you can draw down as you need it | iwoca loans page | |
| Bizcap | Factor rate set per application, plus an establishment fee | £5k to £1m (its own figure) | Decision in as little as 3 hours (its own figure) | Businesses already declined by mainstream lenders who still need cash this week | Bizcap site | |
| 365 Business Finance | One fixed cost, repaid as a percentage of card sales (quoted per offer) | £10k to £500k (its own figure) | Funds in as little as 24 hours (its own figure) | Hospitality, retail and ecommerce Ltds trading 6+ months with £10k+ monthly card sales (365's published minimum) | 365 FAQs | |
| Fleximize | 0.9% to 2.9% a month (Flexiloan) or 1.9% to 3.9% a month (Flexiloan Lite) (its own figures) | £10k to £1m (its own figure) | Decision in as little as 24 hours (its own figure) | Ltd companies trading 12 months or more (Flexiloan), or 6 months or more (Flexiloan Lite) | Fleximize loans page |
Source links go to the lender's own site, or to the page the figures on that row come from. Checked is the date we last checked them. Figures change, so confirm with the lender before you rely on one.
Can a business with no trading history get a loan?
Yes, but how much choice you have depends on how long you have traded. On day one, or before you start: a Start Up Loan (up to £25,000 per founder, lent to you personally), and iwoca, which considers new limited companies and LLPs but caps loans at £10,000 for the first year.
Under 6 months: the same two, plus Bizcap from 4 months if the business already takes at least £12,000 a month. From 6 to 12 months: 365 Business Finance (at least £10,000 a month in card sales) and Fleximize's Flexiloan Lite also become options. Check each lender's own minimum before you apply: a loan advertised for new businesses can still need 6 months of trading or more.
What is a Start Up Loan and who can apply?
It is a government-backed loan from the British Business Bank. You can borrow £500 to £25,000 at a fixed 7.5% a year, repaid over 1 to 5 years, with no application fee and no early repayment fee (GOV.UK). Each owner or partner can apply for up to £25,000, with a maximum of £100,000 per business (Start Up Loans).
It is an unsecured personal loan, so you borrow it yourself, not your company. You must live in the UK, be 18 or over, have the right to work in the UK, have or plan to start a UK business that has been fully trading for less than 5 years, and pass a credit check.
Start Up Loans also says you must be unable to get finance from other sources (your own declaration is enough) and that the business and what the loan is for must be eligible under the scheme. You get free help with your business plan and up to 12 months of free mentoring if you are accepted. FundBiz does not arrange Start Up Loans: you apply through the Start Up Loans website.
What do lenders look at when there is no trading history?
With no accounts to read, lenders look at you instead. Expect them to check the directors' personal credit files, and to ask a director for a personal guarantee (a promise to repay the loan yourself if the company cannot; iwoca, for example, says its business loans require one from at least one director).
A business plan and a cash flow forecast (month-by-month money in and out) help show how you will repay, and the Start Up Loan comes with free help writing the plan. Security, such as equipment or property, or money you put in yourself, can make a lender more comfortable.
Once you have traded a few months, your business bank statements matter most: Bizcap looks at monthly revenue and 365 Business Finance at card sales.
How much can a new business borrow?
Each lender sets its own limit. The Start Up Loan is £500 to £25,000 per founder, up to £100,000 per business. iwoca lends up to £10,000 until you have traded for a year. Bizcap starts at £5,000 for businesses with 4 months of trading and £12,000 a month in revenue.
365 Business Finance offers advances of £10,000 to £500,000 once you have 6 months of trading, based on your card sales. Fleximize's Flexiloan Lite starts at £10,000 from 6 months. What you are offered depends on your figures and credit, not the top of the range.
What are the alternatives to a business loan for a new company?
Asset finance spreads the cost of a vehicle or piece of equipment, and the item itself is the security, so ask each provider for its own minimum trading period. A director's loan is money you lend your own company: record it in the director's loan account so the company can pay you back later.
Grants are usually for a set purpose, area or sector and do not need repaying; the GOV.UK business finance and support finder lists what is open to you. A Start Up Loan can also sit alongside your own money.
Does a Start Up Loan need a personal guarantee?
No. Start Up Loans says the loan is unsecured, so you don't need to put up assets or a guarantor. The loan is made to you personally, not to your company, so you owe it yourself even if the business stops trading.
How we ranked these
We weight new-business acceptance (40%), decision time (20%), eligibility breadth (20%), post-decline acceptance (10%), transparency (10%). Rankings reflect our published editorial methodology, not any commercial arrangement. The full basis is in our methodology, linked below.
Methodology weights
Weights specific to "Business loans with no trading history: UK options":
- New-business acceptance40%
- Decision time20%
- Eligibility breadth20%
- Post-decline acceptance10%
- Transparency10%
Read the full methodology for how we score and rank the lenders we review.
Also considered
- British Business Bank Start Up Loan: £500 to £25,000 per founder (up to £100,000 per business), fixed 7.5% a year, a personal loan to the founder (GOV.UK, Start Up Loans)
- Asset finance, where the vehicle or equipment is the security (ask each provider for its own minimum trading period)
- Lending the company your own money through a director's loan account
- Grants for a set purpose, found through the GOV.UK business finance and support finder
Not for
Sole traders: FundBiz only covers limited companies, LLPs and partnerships of four or more partners. Also not for a business that needs a large sum before it has traded: a Start Up Loan is up to £25,000 per founder and £100,000 per business.
Send an enquiry
Tell us what you need in 2 minutes. FundBiz is not a lender and does not run a credit check. It's free and there's no obligation. For limited companies, LLPs and partnerships with four or more partners.
Send an enquiry →FundBiz is owned and operated by Best Business Loans Ltd, directed by Oliver Mackman. Editorial by Best Business Loans Ltd (16833937).