Business loan declined: sub-12-month trading
Your Ltd company has been trading for less than 12 months. Most UK SMB lenders set 12 to 24 months as a minimum.
Why this triggers a decline
Underwriting models lean heavily on year-on-year trading patterns and seasonal trends. Without a full year, the data is too thin for mainstream credit decisions.
Alternatives that work
- Start Up Loan (government backed)
- iwoca (will engage at 12 months)
- MCA against established card flow
- Asset finance (asset is the security)
Lenders that may consider this
- Start Up Loans Company
- iwoca
- 365 Business Finance (6+ months trading with card sales)
- Selected asset finance lenders
What to do first
- Wait until you cross the 12-month trading mark if the cash gap allows.
- Build card-machine history if you take card payments; some lenders accept 6 months card flow in lieu of trading time.
Not for
Pre-trading companies; companies dormant for most of the period.
Send an enquiry
Tell us what you need in 2 minutes. FundBiz is not a lender and does not run a credit check. We pass your enquiry to a business finance broker, who will contact you about your options. For limited companies, LLPs and partnerships with four or more partners.
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