A short trading history does not automatically rule you out. We look at how your business actually trades and manages money, not only the date your company or LLP was registered at Companies House.
What we consider for newer businesses
If your business was incorporated recently, the strongest thing you can show is genuine, current trading activity. We look at money moving through the business, the purpose of the funds, and whether the borrowing is realistic for where the business is now.
- Recent business bank activity that shows real trading.
- A clear, sensible reason for the borrowing.
- Up-to-date Companies House details for directors or members.
What can make a new application harder
If a business has only just incorporated and has little or no trading activity yet, we have less to base a decision on. That does not mean a refusal, but it can mean the offer reflects what we can see today. If you are approved, the rate and term are shown in your offer.
Good to know
We never take personal guarantees from directors or members, so a newer business is not asked to compensate with personal security. This is exempt business lending, outside the FCA consumer regime, so it is not covered by the Financial Ombudsman Service or FSCS. If you are turned down now, it is often worth applying again once you have more trading history.
See also: Can a newly formed company apply?, Applying as a newly incorporated company and How do Slice instalments actually work?.