Starting a business is one of the most exciting journeys you can take, but it comes with its fair share of financial challenges. One of the biggest questions new entrepreneurs face is: Can I get a loan to start a business with no trading history or revenue? Business loans for startups in the UK are getting tougher by the day.
The short answer is yes, but it requires careful planning, a strong business case, and often the right financial partner.
Can I Get a Loan to Start a Business with No Trading History?
The Realities of Securing Startup Business Loans with No Revenue
Traditional lenders, particularly banks, are cautious when it comes to financing businesses without trading history. The absence of turnover or profitability means they view startups as high risk. Without evidence of proven cash flow, their underwriting process becomes stricter, often demanding more security or personal guarantees.
But this doesn’t mean funding is out of reach. What makes a difference is how well-prepared you are. A solid business plan, detailed financial forecasts, and a clear understanding of your market can help reassure lenders that your idea has potential.
We understand that every successful business starts somewhere. With the right guidance and access to a broad panel of lenders, securing finance as a startup can be easier than you might think.
What Lenders Look For in New Business Loans Without Trading History
Since there’s no past performance to assess, lenders focus on other factors:
- Founder’s experience and creditworthiness: Your own background, expertise, and personal credit score play a big role.
- Market analysis and projections: Lenders want to see evidence that there’s demand for your product or service.
- Clear use of funds: Be specific—are you financing equipment, covering fit-out costs, or investing in marketing? A clear plan shows discipline and responsibility.
Exploring Your Options: Startup Loans UK and Alternative Funding
Government-Backed Startup Loans (The “Start Up Loan UK” Scheme)
One of the most well-known options is the government-backed Start Up Loan scheme. This initiative offers affordable, unsecured loans to early-stage businesses, alongside free mentoring and business support. It’s a great option for entrepreneurs just getting started.
That said, government-backed loans are not always as cheap as they appear. They usually come with a personal guarantee and, in some cases, higher rates than alternative providers. That’s why it’s important to compare your options. Independent brokers like us can access a wide panel of lenders, ensuring you secure the most competitive terms. Put us to the test and get a free quote with our finance calculator.
Other Avenues for New Businesses Without Revenue
Outside government loans, several alternative routes are available:
- Angel investors and venture capital: Ideal if you’re building a scalable, high-growth business.
- Grants and crowdfunding: Often suited for innovative products, community-focused ventures, or creative projects.
- Director loans or personal guarantees: Sometimes necessary for new founders to show commitment.
- Friends and family support: Still one of the most common funding sources for early-stage businesses.
The key is to explore all possibilities and align them with your goals. For many SMEs, asset and equipment finance often provides the most practical, low-risk starting point.
The Shift Away from Traditional Lenders
In recent years, high street banks have been scaling back their support for small businesses, particularly those just starting out. For many entrepreneurs, this has meant long waits, rigid criteria, and more hurdles to clear—often with little success.
At the same time, the need for business finance is only increasing. Startups and growing SMEs alike are looking for funding to invest in equipment, expansion, and new opportunities. As traditional lenders step back, alternative finance providers have stepped forward to bridge the gap.
One area that’s gaining momentum is asset and equipment finance. More and more SMEs are choosing leasing over bank loans, overdrafts, or credit cards because it’s often quicker to arrange, easier to secure without a trading history, and better aligned with cash flow. For many new ventures, this shift makes equipment finance one of the most practical ways to get started without taking on unnecessary risk.
Real Example: Launching a Pilates Studio with No Trading History
A new Pilates studio in South West London approached Johnson Reed before opening its doors. With no trading history or revenue yet, traditional lenders weren’t an option. The studio needed £40,000 to complete a full turnkey project (covering everything from the fit-out and flooring to the equipment and furnishings). Johnson Reed arranged equipment finance tailored to their needs, allowing the founders to launch without a large upfront cost. By spreading payments, the studio preserved working capital, opened on schedule, and started welcoming clients with everything in place from day one.
How Johnson Reed Helps New Start Businesses
Johnson Reed specialises in funding solutions designed for startups, even those with no revenue. We understand the hurdles new businesses face and work with a panel of lenders who are open to backing early-stage ventures.
Our expertise lies in equipment leasing and asset finance, which are often easier to secure than unsecured loans. With these solutions, you can:
- Acquire the essential equipment your business needs without large upfront costs.
- Spread payments over time while preserving your working capital.
- Enjoy significant tax advantages, making leasing more cost-effective than traditional loans.
This funding can cover everything from fit-out and furnishings to fixtures, flooring, and security systems. Whether through lease purchase or hire purchase, you’ll have access to the resources you need to launch. You may get a free quote here.
Preparing Your New Start for Funding Success
Getting finance without trading history it’s all about presenting yourself as a strong, credible applicant.
Building a Robust Business Plan for Lenders
Your business plan is your biggest asset. It should include:
- An executive summary that explains your vision clearly.
- Market research to show the opportunity and demand for your product or service.
- Financial projections that demonstrate realistic growth and repayment capacity.
- A strong USP (unique selling proposition) that differentiates your business from competitors.
Strengthening Your Personal and Business Credit Profile
In the absence of trading history, lenders rely heavily on your personal creditworthiness. Some steps you can take include:
- Checking and improving your personal credit score before applying.
- Registering your business and starting to build a credit record early.
- Showing responsible use of finance, no matter if that’s paying bills on time or maintaining low levels of debt.
Lenders will also want to know about the directors’ equity, homeownership status, and background before making decisions.
How Johnson Reed Can Assist Your Startup
Helping You Get Good Startup Finance
With so many funding options available, it can be overwhelming to know where to start. Johnson Reed helps cut through the noise by:
- Connecting you with specialist lenders who are open to funding new ventures.
- Advising on the most suitable finance types for your circumstances—such as asset finance or equipment leasing.
We Focus on Your Business’s Potential
We don’t just look at numbers on a balance sheet. Our approach is about understanding your vision, your industry, and your growth potential. This allows us to structure funding solutions that make sense for your business journey, even before revenue starts flowing.
Frequently Asked Questions (FAQ) About Startup Loans with No Revenue
What is a “Start Up Loan UK” and how does it differ from a traditional business loan?
It’s a government-backed initiative offering unsecured loans to early-stage businesses, usually with mentoring support. Unlike traditional bank loans, it’s designed specifically for new ventures.
Is it truly impossible to get a business loan with no revenue?
Not at all. While traditional banks may say no, alternative lenders and brokers like us specialise in helping new businesses access funding.
What documents do I need to apply for new business loans without trading history?
Typically: a detailed business plan, personal ID, financial forecasts, and sometimes bank statements or proof of investment.
How long does it take to get a startup loan in the UK?
Depending on the lender, approval can take anywhere from a few days to a couple of weeks. Johnson Reed streamlines the process to save you time.
Are there specific grants available for startups with no revenue?
Yes, although availability depends on your industry and location. Technology, green energy, and community-focused ventures often have grant options.
Can Johnson Reed help me find funding if my business is brand new?
Absolutely. We work with startups across multiple industries, even pre-revenue, to secure the right funding solution.
Get Funded Today
Launching a business without trading history may feel daunting, but the right finance can give you the head start you need.
We’ve helped countless entrepreneurs turn ideas into successful businesses by connecting them with flexible, accessible funding. If you’re ready to explore your options, we’re here to guide you. Get your free quote today.