When applying for business finance, it’s important to know the common requirements lenders look for. While specific criteria can vary by lender and product, most business lenders will consider the following:
Business status & location: your business usually needs to be registered and operating in the UK, and all owners or directors should be at least 18 years old
Trading history: lenders prefer businesses with an established track record. Many require a minimum of 6–12 months of trading history before approving a loan The longer you’ve been in business, the more comfortable lenders feel. Startups and very new businesses can still get funding, but options may be limited or come with stricter terms.
Revenue & affordability: your company’s turnover and profit are key. Lenders want to see that you generate enough revenue to comfortably repay the debt. Often, lenders cap loan amounts relative to your revenue (for example, some may lend up to ~10–25% of your annual turnover), to keep repayments manageable. You should also demonstrate positive cash flow, many lenders expect your cash flow to cover loan repayments at least twice over.
Credit history: both your business credit score and sometimes the personal credit of directors are evaluated. A good business credit score signals you manage debt responsibly, improving your eligibility and access to better rates. If your business credit profile is thin or has issues (like late payments or CCJs), you might still find finance, but possibly at higher interest or with extra conditions.
Required documentation: lenders typically ask for supporting documents. Be prepared to provide recent business bank statements and your latest filed accounts or financial statements. Some lenders may request additional info like a brief business plan, cash flow forecasts, or tax returns, especially for larger loans. Directors’ proof of ID and other KYC checks will also be verified. To know how to download bank statements, consult this article.
Other criteria: each lender has their own specific criteria. Some may have minimum or maximum loan amounts.