“You need two years’ accounts” is something new business owners hear a lot. It’s true for many mainstream lenders, but it isn’t the whole picture. Here are the routes that can work earlier on.
Start Up Loans
The government-backed Start Up Loans scheme, run by the British Business Bank, is designed for exactly this stage.
- £500 to £25,000 per person, with up to four owners able to apply (so up to £100,000 per business)
- a fixed interest rate of 7.5% a year for applications from 6 April 2026 (previously 6%)
- repayable over one to five years
- 12 months of free mentoring
- open to businesses trading for up to five years (from April 2026)
It’s a personal loan for business use, so you’re personally responsible for repaying it. Apply directly at startuploans.co.uk.
Asset finance
Because the asset itself is security, some asset finance providers will lend to young businesses, particularly for vehicles and equipment with good resale value. A deposit and a solid personal credit history help.
Merchant cash advance
If you take card payments, some providers will consider you after a few months of card sales, because repayments come straight from your takings. It’s quick but can be costly, so compare the total repayable carefully. See our MCA guide.
Specialist unsecured lenders
Some lenders will consider businesses trading for six to twelve months, especially with strong bank statements. Amounts are usually smaller to begin with.
Growth Guarantee Scheme
Start-ups aren’t excluded from GGS, but the British Business Bank notes that a Start Up Loan may be more suitable in the first few years. Accredited lenders still need to see that the business is viable.
Grants and local support
Local authorities, growth hubs and sector bodies sometimes offer grants or match funding. They’re competitive and often for specific purposes, but worth checking at GOV.UK’s business finance support finder.
Setting yourself up to borrow later
- open a separate business bank account from day one
- file accounts and returns on time
- keep your personal credit file clean
- build a simple cash-flow forecast and update it monthly
Not sure which route fits your stage? Run through our 30-second eligibility check, and we’ll tell you which lenders consider businesses like yours.