Independent ranking
Best UK Business Loans for Start-Ups Under 12 Months
Independent UK lender rankings from desk research, post-decline options included. FundBiz does not run a credit check. Typical decision times vary by product and lender and are stated in the ranking below.
Start here · What do you need?
UK start-ups under 12 months of trading have narrower business loan options because most mainstream lenders require 12 to 24 months. The realistic shortlist: the British Business Bank Start Up Loan (£500 to £25k, government backed, fixed 7.5% a year interest, for businesses fully trading for less than 5 years) as the first-call option, iwoca for working capital (it lends to businesses trading under a year, capped at £10,000), plus 365 Business Finance for MCA once a business has 6 months of trading and £10,000+ monthly card sales. Pre-revenue concepts almost never qualify for commercial debt. This FundBiz ranking assesses 3 UK lenders for "best uk business loans for start-ups under 12 months", weighting primarily on acceptance of sub-12-month trading (40%), transparency (20%), decision speed (15%) (see the full weighted criteria below). Scores are our own desk-research assessment built from the FCA Register, Companies House filings and each lender's published product criteria, not customer reviews and not paid placement. Lenders don't pay for inclusion or rankings. If you send an enquiry, we pass it to a business finance broker, who pays us a fixed fee; you pay nothing.
Source: FundBiz methodology. Editorial by Best Business Loans Ltd (16833937).
Founder & Managing Director, Muswell Rose, FundBiz
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind FundBiz. His background runs through commercial finance, mortgages and fintech, including as managing director of an invoice finance business. He oversees FundBiz's guides and lender reviews.
Last updated:
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Flexi-loan / line of credit · £1k to £1m · Same day to 24 hours
Lends to businesses trading under a year, with loans capped at £10,000 until the first year is complete (per iwoca).
Our assessment: Transparency: strong · Decision speed: top tier (same day to 24 hours) · Decline handling: strong.
Read full iwoca review → -
Merchant cash advance (revenue-based finance) · £10k to £500k · Funding in as little as 24 hours
MCA from 6 months of trading and £10,000+ monthly card sales, per 365's own FAQ.
Our assessment: Transparency: average · Decision speed: strong (funding in as little as 24 hours) · Decline handling: strong.
Read full 365 Business Finance review → -
Specialist post-decline / fast cash · £5k to £1m · Approval in as little as 3 hours
Published minimum of 4 months of trading and £12,000 monthly revenue; priced for higher risk, so compare the total cost.
Our assessment: Transparency: below average · Decision speed: top tier (approval in as little as 3 hours) · Decline handling: top tier.
Read full Bizcap review →
Side-by-side comparison
| Lender | Typical rate | Ticket | Decision | Best for |
|---|---|---|---|---|
| iwoca | From 1.5% per 30 days | £1k to £1m | Same day to 24 hours | Working capital and cash-flow-gap files needing flexible draw-down |
| 365 Business Finance | One fixed cost, repaid as a percentage of card sales (quoted per offer) | £10k to £500k | Funding in as little as 24 hours | Hospitality, retail and ecommerce Ltds trading 6+ months with £10k+ monthly card sales (365's published minimum) |
| Bizcap | Factor rate set per application, plus an establishment fee | £5k to £1m | Approval in as little as 3 hours | Businesses already declined by mainstream lenders who still need cash this week |
Sources: each lender's own published product pages: iwoca · 365 Business Finance · Bizcap. Figures change; confirm with the lender before you rely on one.
Can a UK start-up under 12 months trading get a business loan?
Yes, but options narrow. The British Business Bank Start Up Loan (£500 to £25k, government backed) is the first-call option. iwoca lends to businesses trading under a year, capped at £10,000. 365 Business Finance will consider MCA from 6 months of trading and £10,000+ monthly card sales. Capify needs 12+ months of trading.
What is the British Business Bank Start Up Loan?
A government-backed personal loan for business purposes, £500 to £25k, at a fixed interest rate of 7.5% a year over one to five years, with no application or early repayment fee. Available to UK residents aged 18 or over with a UK business that has been fully trading for less than 5 years (GOV.UK). No PG required because it is a personal loan, not company debt.
Do new UK businesses need a personal guarantee?
For Ltd companies under two years, yes, almost always. The few exceptions: government-backed Start Up Loans (no PG, but personal liability through the personal-loan structure), MCA against card flow on some lenders, and asset finance where the asset itself is security.
What turnover does a new UK business need to qualify?
No firm minimum on the Start Up Loan (which assesses business plan, not revenue). Mainstream lenders set their own turnover thresholds, and many won't lend in the first year at all. MCA lenders use card takings instead (365 Business Finance, for example, looks for £10,000+ a month).
Are there grants available for UK start-ups instead of loans?
Yes. Innovate UK funds tech and sector-specific innovation, regional development funds support manufacturing and construction in eligible areas, and local enterprise partnerships run smaller schemes. Grants don't need repaying but require detailed application and matched funding.
How we ranked these
We weight acceptance of sub-12-month trading (40%), transparency (20%), decision speed (15%), eligibility breadth (15%), decline handling (10%). Rankings reflect our published editorial methodology, not any commercial arrangement. See our /methodology/ for the full basis.
Methodology weights
Weights specific to "Best UK Business Loans for Start-Ups Under 12 Months":
- Acceptance of sub-12-month trading40%
- Transparency20%
- Decision speed15%
- Eligibility breadth15%
- Decline handling10%
Read the full methodology for how we score and rank the lenders we review.
Also considered
- British Business Bank Start Up Loan (£500-£25k, government backed)
- Virgin Start Up
- Co-operative Bank business loan
Not for
Applicants needing £100k+ on day one; pre-revenue.
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.
Send an enquiry →FundBiz is owned and operated by Best Business Loans Ltd, directed by Oliver Mackman. Editorial by Best Business Loans Ltd (16833937).