If you own a business and need finance to secure premises, you might wonder if it’s possible to secure finance without a trading history. The short answer is yes, but it’s not always straightforward.
Lenders value certainty. Commercial mortgage lenders seek reassurance that a business can repay the loan, making your trading history crucial. Your trading history demonstrates that the business operates, generates income, and can fulfil its financial obligations.
If you’re a new business or just starting out, you won’t have a trading history. But don’t worry. It is possible to secure a commercial mortgage without one by boosting your application in other ways. Here’s how.
When there’s no trading history to rely on, lenders will want to see a clear and realistic business plan. Your plan should include:
The business plan should reassure the lender that your business is viable and will generate sufficient income to cover the mortgage payments.
Without a business track record, your personal credit history and financial situation become more critical. Lenders may want:
The stronger your personal credit profile, the better your chances of securing finance.
Putting down a larger deposit reduces the lender’s risk and can improve your chances of approval. It also shows your commitment.
Your background can be just as valuable as your trading history if you can demonstrate your experience. If you’ve previously run businesses or have industry experience, lenders will see you as a lower-risk borrower.
While many lenders, especially high street banks, may be reluctant to lend without a trading history, several specialist and alternative lenders are more willing to support new businesses. Exploring your options beyond the high street can make all the difference, and that’s where a commercial finance broker can help.
At ASC Finance for Business, we specialise in helping business owners and entrepreneurs secure finance, even if you’re just starting out.
We don’t believe in tick-box lending. We take the time to understand your goals and match you with lenders who are willing to look beyond the numbers. Because when it comes to commercial mortgages, there’s no one-size-fits-all.
If you’re considering buying premises but don’t have a trading history, get in touch. We’ll talk you through your options and help you secure the property you need to make your business a success.
