ELIGIBILITY GUIDE

Minimum Turnover for a Business Loan in the UK: What You Need to Know

By the Floka team4 min read

One of the first questions business owners ask when considering finance is: what is the minimum turnover I need to qualify for a business loan? It is a fair question, but the answer is not straightforward. Different lenders set different thresholds, and turnover is only one part of the picture.

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There Is No Universal Minimum

Unlike regulated consumer lending, business finance does not have a single set of rules that all lenders follow. Each lender sets its own criteria based on its appetite for risk and the types of businesses it wants to serve.

That said, some general patterns exist:

  • High street banks often require higher turnover, most often a minimum of £50,000 per year or more, along with strong credit and established trading history.
  • Alternative lenders are frequently more flexible, with some considering younger businesses turning over from £5,000 per month.
  • Specialist providers may focus on specific sectors or products and have their own thresholds.

As a rough guide, many lenders look for a minimum of £5,000 to £10,000 in monthly revenue. Below that, options become limited but do not disappear entirely.

Why Turnover Is Not the Whole Story

Meeting a minimum turnover requirement does not guarantee approval. Lenders consider turnover alongside other factors:

  • Time in business. Most want to see at least 12 months of trading.
  • Cash flow health. Consistent income and manageable outgoings matter more than raw turnover.
  • Profitability. Revenue is one thing; whether your business makes money is another.
  • Credit history. Both business and personal credit are often reviewed.
  • Existing debt. High levels of existing borrowing reduce capacity for more.

A business with modest turnover but excellent cash flow and a clean credit history will be viewed more favourably than a higher-turnover business with erratic finances.

What If Your Turnover Is Below Typical Minimums?

If your revenue is lower than most lenders require, you have a few options:

Wait and grow. Building your turnover over the next few months may open up better options.

Explore alternatives. Some forms of finance, such as small grants, start-up loans, or crowdfunding, have different criteria.

Check eligibility anyway. You may be surprised. Some lenders take a broader view, and a soft eligibility check costs you nothing.

Focus on other factors. Improving your credit score or building a longer trading history can help when revenue is borderline.

How to Find Out Where You Stand

Rather than guessing or applying speculatively, you can check your eligibility before committing to anything.

An eligibility check matches your details against lender criteria without affecting your credit file. You get a realistic view of your options, which helps you decide whether to apply now, wait, or explore other routes.

Not sure whether your turnover qualifies? Check your eligibility with Floka in a few minutes. No credit impact, no obligation, and no pressure.

Check eligibility
FT

Floka Team

Business Finance Experts

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