Independent ranking
Best UK Business Loans for New Businesses, No History
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?
Sub-12-month trading is the single biggest decline reason for mainstream lenders. The Start Up Loan plus a small group of specialist lenders are the realistic options. This FundBiz ranking assesses 4 UK lenders for "best uk business loans for new businesses, no history", weighting primarily on new-business acceptance (40%), decision time (20%), eligibility breadth (20%) (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.
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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: Post-decline acceptance: strong · Transparency: strong.
Read full iwoca 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.
Our assessment: Post-decline acceptance: top tier · Transparency: below average.
Read full Bizcap 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: Post-decline acceptance: strong · Transparency: average.
Read full 365 Business Finance review → -
Term loan with flex features (unsecured and secured options) · £10k to £1m · Decisions and funding in as little as 24 hours
More accommodating on sub-2-year trading than mainstream term lenders.
Our assessment: Post-decline acceptance: strong · Transparency: average.
Read full Fleximize 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 |
| 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 |
| 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) |
| Fleximize | 0.9% to 2.9% per month | £10k to £1m | Decisions and funding in as little as 24 hours | Seasonal businesses needing payment flex |
Sources: each lender's own published product pages: iwoca · Bizcap · 365 Business Finance · Fleximize. Figures change; confirm with the lender before you rely on one.
What is the best UK business loan for a company with no trading history?
The British Business Bank Start Up Loan (£500 to £25k, fixed 7.5% a year interest, government backed) is the first-call option for new founders. iwoca lends to businesses trading under a year, capped at £10,000. Bizcap looks for 4+ months of trading, and 365 Business Finance considers MCA from 6 months of trading.
Can a pre-revenue UK Ltd company borrow money?
Through traditional debt, almost never. The Start Up Loan accepts pre-revenue applicants on the strength of a business plan and personal credit. Innovate UK and grant schemes can fund pre-revenue innovation. Founder personal capital and angel investment fill the rest of the gap.
How much can a UK start-up borrow with no trading history?
Up to £25k personally per founder via the Start Up Loan. iwoca caps loans at £10,000 for businesses trading under a year. MCA is sized to your monthly card takings. Above £25k before 12 months of trading, options are very limited.
What documents does a UK new-business loan application need?
A business plan, 12-month cash-flow forecast, founder ID and proof of address, personal credit reference, and (for the Start Up Loan) a budget showing how the funds will be spent. For MCA, recent card-machine statements.
Does a UK Start Up Loan require a personal guarantee?
No, because the Start Up Loan is structured as a personal loan to the founder, not a company debt. The founder is personally liable for repayment, which is functionally similar to a PG without the PG paperwork.
How we ranked these
We weight new-business acceptance (40%), decision time (20%), eligibility breadth (20%), post-decline acceptance (10%), transparency (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 New Businesses, No History":
- New-business acceptance40%
- Decision time20%
- Eligibility breadth20%
- Post-decline acceptance10%
- Transparency10%
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)
- Innovate UK grants for tech / sector-specific
Not for
Pre-incorporation founders; pre-revenue with no concrete revenue plan.
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).