Can I get business funding if the business is not yet profitable?
Often, yes, provided the business is trading and money is moving through it. Many UK lenders, particularly cash-flow funders, do not require a business to have filed a profitable set of accounts. What they generally require instead is evidence of revenue: months of card takings, bank transactions, or invoices owed by creditworthy customers.
One qualifier: "not yet profitable" and "not yet trading" are different things. A company with six months of sales and thin margins has something a lender can assess. A company with a plan and no revenue generally does not, and most of the products described here are not available to brand-new businesses. Trading-time minimums, checked in August 2026, are set out below.
What do lenders look at instead of profit?
Revenue, its consistency, and how the business handles the cash it has. A lender reading three or six months of bank transactions can see turnover, the gap between money in and money out, whether existing commitments are met on time and whether the balance ever goes negative. That picture is commonly more useful than a profit figure, which can be shaped by depreciation, directors' pay and the timing of year end.
- Trading time: how many months the business has been taking money. Lenders publish minimums, below.
- Revenue level: card-based funders set monthly takings thresholds; loan lenders commonly look at annual turnover.
- Consistency: steady weekly takings read better than the same total in one spike.
- Bank conduct: returned payments, unauthorised overdrafts and late commitments count against a business regardless of profit.
- Directors' credit: most lenders search the directors as well as the company, and a personal guarantee is commonly required.
How long does a business need to have been trading?
It depends on the product. Card-takings funders publish the shortest minimums because they are reading live sales data; term-loan lenders generally want longer. The figures below are from the lenders' own pages or from recent reviews and were checked in August 2026.
| Lender | Minimum trading time | Revenue requirement | Product type |
|---|---|---|---|
| YouLend | Three months | £1,500 a month minimum card sales | Revenue-based funding |
| 365 Finance | Six months | £10,000 a month average card sales | Merchant cash advance |
| Funding Circle | One year or more | Not published as a single figure | Business loan |
Which products are built around cash flow rather than profit?
The ones where the lender is repaid from something it can see, rather than from a promise backed by accounts.
- Merchant cash advance and revenue-based funding: repaid as a percentage of card takings, so the assessment is about sales, not margin. 365 Finance states repayments fall when sales fall and that it runs a soft search only.
- Invoice finance: the lender advances against unpaid B2B invoices and looks primarily at the customers' credit. A loss-making business with strong customers can still qualify.
- Asset finance: secured on the vehicle or equipment being funded, so the lender's exposure is to the asset rather than to the profit and loss account.
- Revolving facilities from fintech lenders: iwoca, for example, lends to limited companies and partnerships on the basis of trading data with a personal guarantee from a director.
What about a business that has not started trading?
Most of the products above are not available to it. A merchant cash advance needs card takings to buy; invoice finance needs invoices; a cash-flow loan needs a bank history to read. A brand-new company commonly finds its realistic options are asset finance for specific equipment, where the asset is the security, or routes outside commercial lending altogether, such as grants, founder and investor capital, or government-backed start-up schemes.
CapExpand introduces trading limited companies and LLPs to lenders and funders. It does not introduce pre-revenue start-ups, and it is not a source of start-up advice. The guide to business funding in the UK sets out the wider landscape.
When is funding before profit not the right move?
Where the business is unprofitable because its model does not work, borrowing buys time rather than a solution, and the repayment holdback or instalment makes the margin worse. Cash-flow products are designed for timing gaps and growth spending: stock for a busy season, a second till, a vehicle. They are a poor fit for covering a structural shortfall month after month.
A business in that position commonly looks hard at pricing, costs and the customer base before adding a facility, and talks to its accountant about whether the losses are temporary. This page is general information, not advice.
Frequently asked questions
Do lenders need to see filed accounts?
Term-loan lenders commonly ask for accounts where they exist, and Funding Circle requires a year or more of trading. Cash-flow funders such as YouLend and 365 Finance assess card takings and bank data and publish trading minimums of three and six months respectively, well inside a first accounting period. Requirements vary by lender and product.
Does a loss on last year's accounts rule out a loan?
Not automatically. Lenders generally look at the reason for the loss, the trend since and the current bank conduct. A loss driven by investment or a one-off cost reads differently from a trading loss that is continuing. Where accounts are weak, revenue-based and asset-based products commonly remain available.
Can a start-up with no revenue get a merchant cash advance?
No. An MCA is an advance against future card takings, and funders set minimum trading periods and sales thresholds: YouLend asks for three months and £1,500 a month in card sales, 365 Finance for six months and £10,000 a month. Without takings there is nothing to advance against.
Will I need a personal guarantee if the business is not profitable?
Commonly, yes, whether or not the business is profitable. iwoca asks for a personal guarantee from a company director and Funding Circle states one will be required. The page on personal guarantees explains what that means for the director.
Trading, growing, not yet in profit?
CapExpand introduces UK limited companies and LLPs to lenders and funders that assess trading data rather than accounts. Tell us what the business turns over and how long it has traded, and we connect you with providers whose published criteria allow for it.
Sources
Lender minimums checked August 2026. They change without notice; confirm with the lender before applying.
- 365 Finance FAQs (six months trading, £10,000 monthly card sales, repayments fall with sales, soft search)
- Business Expert: YouLend review (three months trading, £1,500 monthly card sales, Open Banking)
- Funding Circle: small business loans (trading one year or more, personal guarantee required)
- iwoca support: how iwoca loans work and who is eligible (limited company or partnership, personal guarantee)
- Business Loans for Bad Credit: invoice finance with bad credit (customer creditworthiness)
Important information
CapExpand Ltd is not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. We work with UK limited companies and LLPs only, for business and commercial purposes. We are not a lender and we do not provide financial, tax or legal advice. We work with a panel of lenders whose particulars are available on request, and we receive commission from the lender if a deal completes, at no cost to you. All lending is subject to status, valuation where applicable and the lender's own checks.
Registered office: Pure Offices, Lake View Drive, Annesley, Nottingham, NG15 0DT. Company No. 14433858.
CapExpand Ltd (Company No. 14433858) is a commercial finance introducer, not a lender. We are not currently authorised or regulated by the Financial Conduct Authority and do not provide financial advice. All information on this page is for educational purposes only. Funding is subject to status and lender criteria. CapExpand will receive a commission from providers at no extra cost to you.