Why no filed accounts is different from overdue accounts
A newly incorporated company has not yet reached its first accounting reference date, so there are no accounts due to file. This is a very different situation from a company that is overdue in filing accounts that should have been submitted. Lenders understand this distinction and approach it accordingly.
However, the absence of any filed financial information means the lender has no official record of the company's financial history. They will rely on alternative evidence including bank statements, management accounts, VAT returns, and the directors' personal financial profiles.
What lenders use instead of filed accounts
For companies under 12 to 18 months old with no filed accounts, lenders will typically rely on: business bank statements (all accounts, as far back as possible), management accounts or a simple profit and loss prepared by your accountant, VAT returns if the business is VAT-registered, director personal bank statements and credit profiles, and a cash flow forecast for the proposed loan term.
The more financial information you can provide in lieu of filed accounts, the better your chances of approval. Some lenders specialise in early-stage or recently incorporated businesses and have underwriting processes tailored to this profile.
Frequently Asked Questions
Is a company with no filed accounts the same as a startup?
Essentially yes, in most cases. A company that has never filed accounts will almost always be less than 12 to 18 months old. The finance options available are the same as those described in our startup business finance guide.
Can I get invoice finance if I have only 2 or 3 months of trading?
Some invoice finance providers will consider businesses with 3 to 6 months of B2B trading history, especially where the invoices are to creditworthy customers and the advance amount is modest. This is more readily available through specialist providers than through mainstream banks.