Credit line eligibility:
who gets a limit, and how big
To get a business credit line through our panel you need to be a UK limited company, or an LLP for some of the facilities, trading through a business bank account that shows enough regular income to carry the repayments. The size of the limit follows your turnover and the way the account is run. Enquiring with us takes about a minute and leaves no mark on your credit file.
No credit check to enquire.
The four things that decide whether you get a limit
- How the business is set up
The facility we place most often is for limited companies only, and other credit lines on our panel also take LLPs. A sole trader or ordinary partnership cannot get one through Flowzo; a farm business of any structure can look at input credit through Farmzo.
- What the bank statements show
A credit line is sized on current trading, so the statements matter more than the accounts. Regular income, bills paid without bouncing, and a balance that is not stuck at an overdraft limit are what an underwriter looks for. Many lenders read them through Open Banking.
- Turnover against the limit you want
Limits on our panel run from about £1,000 to £250,000 on the main facility, and higher on others. The lender sets the limit as a share of what flows through the account, so a business turning over £120,000 a year should not expect a six-figure limit.
- The credit files, company and personal
Both get read. A judgment or a run of late payments from last spring weighs much more than one from five years ago. Most credit lines to small companies ask a director for a personal guarantee, which is why the director’s own file is read too.
How to apply for a credit line
From enquiry to a limit you can spend, which on a good day takes hours rather than weeks.
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01 Give us the outlineA minute or so
Roughly what you would draw, how often, and the basics of the company. We do not search your file, and no lender sees your details until you agree.
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02 We match you to a facilitySame day
We run your details against the panel’s real criteria and tell you which credit lines fit, what each would cost, and which ones would decline you.
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03 Apply and get a limitMinutes to a day
The lender checks the company, the directors and the bank statements. On the facility we place most often, seeing your limit does not affect your credit score.
What makes a limit smaller than you hoped
A short trading history is the usual reason. With six months of statements a lender is extrapolating from very little, so the first limit is often modest and grows after a few months of drawing and repaying on time. Seasonal businesses meet the same thing if they apply in the quiet months, because the most recent statements carry the most weight. Apply after your strongest quarter if you can.
Existing borrowing is the other. Every loan, lease and card repayment already leaving the account comes off what the lender thinks you can carry, and the limit shrinks to match. Several facilities stacked on top of each other show up immediately, and a new lender will price or limit for it. Running more than one facility explains how that is judged.
If you are turned down
One lender’s no is not the market’s. Each lender scores differently, and a decline usually means you missed one specific gate: structure, time trading, turnover or a recent mark on a file. Ask which, or ask us, because the answer decides where to go next. Applying to several lenders in a row leaves a trail of searches, so it is worth knowing which one fits before you apply rather than after.
If the gap you are covering is unpaid invoices, invoice finance leans on your customers’ credit as much as yours. If most of your income comes through a card machine, revenue-based finance is sized on takings. And our declined guide covers each reason in turn. Before you apply anywhere, check what a credit line would cost on your numbers.
Common questions
Can a new limited company get a credit line?
With a few months of trading through a business account, sometimes, though the first limit will be small. With no trading history at all, realistically not: there is nothing for a lender to size the limit on. Six months of statements is a sensible point to try.
Will checking my credit line limit show on my credit file?
Enquiring with us leaves no mark. On the facility we place most often, seeing your limit does not affect your credit score either. Other lenders may run a full search when you formally apply, and we tell you which before it happens.
Do I need to own my home to get a credit line?
Not for the facility we place most often. Some lenders give homeownership weight on larger limits, as a sign of stability rather than as security. If no director owns a home, we will tell you which facilities that rules out.
Can an LLP get a business credit line?
Yes, from some of the lenders on our panel, though not from the facility we place most often, which is for limited companies only. The checks on the business and its members are much the same as for a company.
Is there a minimum turnover for a credit line?
There is no single floor across the panel, and lenders do not all publish one. In practice the limit is set as a share of the income going through your account, so lower turnover means a lower limit rather than an automatic no. Tell us yours and we will say what is realistic.
See whether you would get a limit
About a minute, no credit check, and a straight answer on which facilities fit.
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