Can a new UK business get finance in its first year of trading?

Companies House incorporation and your first customer invoice may be months apart. Lenders typically focus on when trading began — when money started moving through the business account, contracts were signed or invoices were issued.

• Business bank statements (often three to six months)
• Sales invoices and customer contracts
• Purchase orders or pipeline evidence for B2B businesses
• Filed accounts if your year-end has passed
• Management accounts or an accountant's overview where available

When you complete Tera's two-minute assessment, you can select trading duration including under 1 year. That helps a specialist understand your profile early and explore finance types that may be realistic for younger businesses — without repeating the same information across multiple enquiries.

Where the finance is secured against equipment, machinery or a commercial vehicle, providers may be more flexible on trading history. Asset finance and vehicle finance spread the cost of essential kit while the asset itself provides security. A deposit may still be required, and terms depend on the provider's assessment.

B2B businesses issuing invoices to identifiable customers may qualify for invoice finance once there is a track record of billing and payment. The facility is linked to your debtor ledger rather than years of filed accounts — though providers will still review your customers' creditworthiness.

Business loans in the first year are typically harder, especially unsecured facilities. Where trading is close to twelve months, there is a clear purpose and stronger security or a personal guarantee may be available, some providers will consider an application. This is not guaranteed — eligibility depends on the full case.

Active businesses facing a verifiable corporation tax or VAT liability may explore tax and VAT funding to spread the cost over months. Providers need evidence of the liability and ongoing trading.

• Large unsecured loans without trading track record
• Commercial property finance without a strong deposit and experience
• Development finance without a proven track record
• High loan-to-value facilities without additional security

Most applications require recent business bank statements — typically three to six months. Consistent inflows, manageable outgoings and no unexplained gaps strengthen a year-one case.

A concise explanation of how the funds will be used — equipment purchase, cash flow, stock, vehicles — helps providers assess whether the product matches the purpose.

Director details are standard. Many providers request a personal guarantee for smaller or unsecured facilities. This should be explained before you proceed, and you are free to decline — though the provider may not then offer terms.

Asset and vehicle finance often requires a deposit — commonly ten to twenty per cent depending on asset type and profile. The equipment or vehicle itself secures the facility.

Funding equipment through asset finance, bridging invoice gaps through invoice finance, and replacing a van through vehicle finance each involve different criteria. Matching purpose to product avoids wasted applications.

Tera's funding readiness guide outlines information commonly required. Having bank statements, purpose notes and director details ready can shorten the process once a specialist reviews your case.

Younger businesses may face lower maximum amounts, shorter terms or requests for security. A specialist can discuss what may be realistic for your circumstances — there is no obligation to proceed.

A commercial finance broker introduces your case to providers from an available panel rather than lending directly. Learn how broker introductions differ from going direct if you are weighing your options.