Business Funding for New Businesses Under 12 Months

Can you get funding as a new business? Yes. YouLend (6mo+), iwoca (6mo+), Fund Ourselves (3mo+) all fund new businesses. £5k-£100k available. Requirements and approval rates explained.

Funding Options by Trading Time

  • 0-3 months: Very limited. Startr or personal lending only
  • 3-6 months: Fund Ourselves (3mo minimum)
  • 6-9 months: YouLend, iwoca (6mo minimum)
  • 9-12 months: YouLend, iwoca, 365 Finance (9mo min)
  • 12+ months: All providers available

Best Lenders for New Businesses

1. iwoca - 6 Months Minimum (Best Option)

  • Min Trading: 6 months
  • Min Revenue: £3,000/month
  • Approval Rate: 75% for 6-12 month businesses
  • Factor Rate: 1.15-1.30x (higher for newer businesses)
  • Amount: £1k-£75k typically for under 12 months

2. YouLend - 6 Months Minimum

  • Min Trading: 6 months
  • Min Revenue: £8,000/month
  • Approval Rate: 70% for 6-12 month businesses
  • Factor Rate: 1.20-1.35x for newer businesses
  • Best For: E-commerce with strong platform data

3. Fund Ourselves - 3 Months Minimum (Newest Accepted)

  • Min Trading: 3 months (lowest in UK)
  • Min Revenue: £5,000/month
  • Approval Rate: 50-60% for 3-6 month businesses
  • Factor Rate: 1.25-1.40x (higher due to risk)
  • Amount: £3k-£50k for very new businesses

Approval Rates by Trading Time

0-3 months trading:10% approval (very difficult)
3-6 months trading:50% approval (Fund Ourselves only)
6-9 months trading:70% approval (iwoca, YouLend)
9-12 months trading:80% approval (all MCAs)
12+ months trading:85%+ approval

Tips for New Businesses

  1. Wait until 6 months if possible: Approval jumps from 30% to 70%
  2. Show strong revenue growth: £3k → £8k → £12k over 6 months = approved
  3. Apply to iwoca first: Lowest minimum, best rates for new businesses
  4. Start small: Ask for £10k-£20k, not £50k (higher approval chance)
  5. Build track record: First advance builds relationship for larger second advance

What If You're Under 6 Months?

Options are very limited under 6 months trading:

  • Fund Ourselves: Accepts 3+ months (factor rates 1.25-1.40x)
  • Start Up Loans: Government scheme, £500-£25k at 6% APR (long approval process)
  • Business overdraft: Easier to get than loan
  • Personal loan: Use personal credit if business credit unavailable
  • Wait: Best option - wait 2-3 months for better access and rates

Conclusion

New businesses (6-12 months) CAN get funding from iwoca, YouLend, and Fund Ourselves. Expect higher factor rates (1.15-1.35x vs 1.08-1.25x for established businesses) and lower amounts (£10k-£75k vs £500k max).

Best strategy: Wait until 6 months minimum. Then apply to iwoca (best rates for new businesses) + 2-3 alternatives.

Funding for New Businesses

6+ months trading? Get matched to lenders accepting new businesses. 70-80% approval.

Apply as New Business