Quick answer
Trading history is the length of time a business has been operating and earning revenue. Lenders usually measure it from the date the ABN became active, then check it against bank statements, BAS and tax returns. Many online lenders want at least six to twelve months, banks often want two years of financials, and property-secured lenders can sometimes help businesses with a very short history.
Key points
- Measured mainly from the ABN's active date, backed up by bank statements and BAS
- Longer history shows the business survives a full year of seasons and costs
- Typical minimums: around 6–12 months for many online lenders, 2 years for many banks
- Moving from sole trader to company usually means a new ABN, so explain the earlier history
Ask any lender what they check first and “how long have you been trading?” comes up almost straight away. Trading history is simply the length of time your business has been operating and bringing in money. It’s one of the quickest ways a credit team gauges whether a business has proven it can survive.
Why does trading history matter so much?
A business that has traded for two years has already been through two tax times, two Christmases, quiet months, supplier price rises and probably a bad debt or two. Its bank statements show how it coped. A business that’s six weeks old hasn’t been tested yet, however promising it looks.
Lenders use history as a stand-in for that test. It also gives them something to measure: with twelve months of statements they can see average monthly turnover, seasonal dips and how repayments would fit. That’s the basis of bank statement lending.
How do lenders check it?
Most start with ABN Lookup, the free public register that shows when an ABN became active and whether the business is registered for GST. Then they confirm it with real activity:
- Business bank statements, commonly covering 3 to 12 recent months
- BAS lodgements, which show reported sales quarter by quarter
- Tax returns and financial statements, which banks rely on most
- Your accountant’s confirmation, especially where the paperwork is catching up
An ABN registered years ago doesn’t count by itself. If the account shows no revenue until recently, the lender treats the business as new.
Typical minimums across the market
| Lender type | Trading history commonly sought | What carries the risk |
|---|---|---|
| Major and regional banks | Often 2 years, with financial statements | Track record and serviceability |
| Online and fintech lenders | Often 6–12 months; a few go shorter | Bank statement turnover |
| Equipment and asset finance | Can be shorter for strong applicants | The asset being financed |
| Property-secured and private lenders | Can consider new ABNs | Equity in the property |
Treat the table as a rough map; individual credit policies vary widely, and a strong minimum turnover figure or good security can offset a shorter record.
If your ABN is younger than you’d like, our pages on business loans with an ABN under 12 months and under 6 months go through realistic options.
The restructure trap
Here’s the problem we see most often. A sole trader runs a business for years, then sets up a company on their accountant’s advice. Because the structure changed, the company generally needs its own new ABN. To an automated system, a business with eight years behind it suddenly looks four months old.
Example. A Townsville electrician traded as a sole trader for six years, turning over about $380k a year. In June they moved the business into a Pty Ltd. In October they apply for a $45k unsecured loan for a new van and test equipment, and the online lender’s system flags the company ABN as under six months.
The fix is documentation. The electrician supplies the old ABN, two years of sole trader tax returns, recent BAS, plus a brief accountant’s note stating it’s the same business with the same customers. The lender assesses the full six years. Without that context, the application would likely have been declined or sent to a lender that charges more.
If you’ve restructured, say so up front and have the earlier records ready. Our guide to company vs sole trader for borrowing covers the other side effects.
Short history but a real need? Tell us where the business is at.
Related terms
- ABN: the number most lenders use to date your business.
- Annual turnover: the revenue figure lenders pair with trading history.
- Bank statement lending: assessment based on recent account activity.
- Startup business loans: options when history is thin or non-existent.
Short on history, not on potential?
Plenty of good businesses are simply young. The right lender looks past the ABN date to the turnover, the security and the experience behind it. Telling us about your business takes around a minute, and the enquiry doesn’t involve checking your credit file. Your information stays with our team rather than being passed from lender to lender, and a specialist who understands newer businesses will read your situation and give you a call. Include the real start date and any earlier ABN, because accurate history gives us the best shot at a correct match on the first pass.
Frequently asked questions
How is trading history measured?
Most lenders start with the ABN's active-from date shown on ABN Lookup, then confirm it with business bank statements, BAS lodgements and tax returns. The ABN date alone isn't enough: a dormant ABN registered years ago doesn't count as trading if there's no revenue to show for it.
What's the minimum trading history for a business loan?
It varies. Some online lenders accept around six months, many prefer twelve, and banks commonly ask for two years of financial statements. Lenders secured by property may consider newer businesses because the property, not the trading record, carries most of the risk.
I changed from sole trader to a company. Do I lose my trading history?
The company will usually have a new ABN, so on paper it looks new. Many lenders will count the earlier history if it's the same business doing the same work. Show them the old ABN, past BAS and bank statements, and explain the change up front.
Does buying an existing business give me its trading history?
Often, yes. Lenders funding an acquisition look closely at the business's past results, not just how long you've owned it. Your own experience in the industry also helps.
Can I get a business loan with no trading history?
It's harder but possible. Options include borrowing against property you own, equipment finance where the asset is the security, or a guarantor. Unsecured lenders rarely fund a business with no revenue yet.