What trading history, turnover or affordability do providers usually require?

UK SMB lenders typically require 12 to 24 months of trading history, minimum annual turnover of £50,000 to £150,000, and a debt service coverage ratio (DSCR) of 1.25 to 1.5 times forecast trading. The exact thresholds vary widely by product. Fintech term lenders are more accommodating on trading age; bank lenders require longer histories but engage on lower DSCRs for property-secured deals.

By lender class. Fintech term loan (iwoca, Funding Circle, Fleximize): minimum 6 to 24 months trading depending on the lender, minimum £50,000 to £100,000 turnover, DSCR 1.25x typical. Merchant cash advance (Capify, 365 Business Finance, Liberis): minimum 3 to 6 months card-machine flow, minimum £5,000 to £15,000 monthly card volume, no explicit DSCR (advance is sized against expected card flow). Bank SME loan (Allica Bank, Shawbrook, Aldermore): minimum 24 months trading, minimum £150,000 to £500,000 turnover for most products, DSCR 1.5x typical. Asset finance (Time Finance, Ultimate Finance): more accommodating on trading age, often 6 to 12 months acceptable, with the asset providing primary security. Commercial mortgage: typically 2 to 3 years trading and clear DSCR evidence over multiple years.

What lenders mean by affordability. Most UK SMB underwriters model DSCR (debt service coverage ratio) as: trading EBITDA divided by total annual debt service across all facilities. A DSCR of 1.25 means trading earns 1.25x the cost of servicing all debt. A DSCR of 1.0 means trading earns exactly enough to service debt with no margin for error. Most lenders will not lend below 1.25x; some will go to 1.10x for property-secured deals where the asset is strong.

Affordability is calculated against your actual numbers, not your headline turnover. £500,000 turnover with 2% net margin produces less affordability than £200,000 turnover with 15% margin. See our DSCR calculator and loan affordability calculator for the maths.