A newer business doesn’t automatically mean waiting years to apply – some lenders will genuinely consider just one year of financials.

Two years of financials is the standard, but it’s not the only path – for the right business and the right lender, one solid year can be enough.

I’m Albert from Awesome Lending Solutions. Most standard, full documentation home loans ask for two years of tax returns and financial statements, but if your business is newer, this can feel like an impossible hurdle even if your business is genuinely strong and well-established in practice. The good news is that a number of lenders on our panel will consider an application with just one year of financials, particularly where the surrounding circumstances support the strength of your business.

I’ll walk you through what makes a one-year financials application genuinely competitive, what lenders are looking for beyond the basic figures, and how we help present your case in the strongest possible light.

What makes lenders comfortable with just one year

Lenders willing to consider a single year of financials generally want to see evidence that reduces the perceived risk of a shorter trading history. This commonly includes a genuinely strong, consistent income trend within that single year, rather than a business that started slowly and only recently became profitable. It also includes evidence of relevant industry experience prior to starting the business – for example, someone who worked as an employed tradesperson for a decade before starting their own business is generally viewed more favourably than someone starting a business in a completely unfamiliar field.

Some lenders will also place weight on whether your business has secured contracts, repeat clients, or other evidence of ongoing, sustainable income beyond the single year of financials on paper, since this suggests the current trading pattern is likely to continue rather than being a one-off strong year that might not repeat.

• A genuinely strong, consistent income trend within the single year
• Relevant industry experience prior to starting the business
• Evidence of ongoing contracts or repeat clients supporting sustainability
• A clear, credible explanation for the shorter trading history

The documentation typically required

For a one-year financials application, you’ll typically still need your single year of tax return and financial statements, alongside recent Business Activity Statements covering a more current period, and several months of both business and personal bank statements. Some lenders will also want a letter from your accountant confirming the sustainability of your income and providing context on your business’s trading history and outlook.

The stronger and more complete this documentation package, the more confident a lender can be in assessing your application favourably, even with the shorter trading history compared to a standard two-year application.

Industries and situations that tend to be viewed favourably

Some industries and situations tend to be viewed more favourably by lenders considering a one-year financials application. A tradesperson who was previously employed in the same trade before going out on their own, a professional who left an established firm to start a similar practice, or a business that’s simply a continuation of previous, verifiable industry experience all tend to present a stronger case than a business representing a completely new direction with no prior track record in that field.

This doesn’t mean a genuinely new venture in an unfamiliar industry can’t succeed with a one-year application – it simply means the case needs to be built more carefully around other strengths, such as a particularly strong first year of trading, a solid deposit, or other compensating factors in your overall financial position.

How we build a strong one-year financials application

We start by understanding the genuine story behind your business – your background, your industry experience, and what’s driven your trading results so far. This context matters significantly, since lenders willing to consider one year of financials are typically looking beyond the raw numbers to the overall credibility and sustainability of your business, and a well-presented narrative alongside strong documentation genuinely strengthens an application.

We then match you with lenders on our panel whose policies are specifically comfortable with shorter trading histories, rather than applying to lenders whose standard policy requires two full years regardless of the strength of your case, which would simply waste time on an application unlikely to succeed.

Weighing waiting versus applying now

For some borrowers, it genuinely makes sense to wait another six or twelve months to build a second year of financials, which opens up a wider range of standard lenders and potentially more competitive terms. For others – particularly if property prices in their target area are moving, or if their business has already demonstrated strong, sustainable trading – applying now with a well-prepared one-year financials application makes more sense than waiting. We’ll talk through both paths honestly so you can decide what’s right for your situation.

Frequently Asked Questions

Will every lender consider one year of financials?
No – many standard lenders still require two full years. This is exactly why comparing across our panel matters, since only some lenders are genuinely comfortable with a shorter trading history, and their specific requirements vary.

Does my previous employment history matter for a one-year financials application?
Yes, significantly. Relevant industry experience prior to starting your business is often viewed favourably by lenders assessing a shorter trading history, since it supports the credibility and sustainability of your current income.

Should I wait until I have two years of financials instead?
It depends on your situation – waiting can open up more lenders and potentially better terms, but if your business is already trading strongly and you’re keen to buy sooner, a well-prepared one-year application is genuinely worth considering. We’ll help you weigh this up.

What if my first year of trading was weaker than my current trading?
This is worth discussing directly, since some lenders will place more weight on your most recent months of trading (via BAS statements) rather than solely the full financial year figures, particularly if there’s a clear, credible upward trend.

Do I need a letter from my accountant?
Often, yes – a letter confirming the sustainability of your income and providing context on your trading history can meaningfully strengthen a one-year financials application.

Does the type of business I run affect how one year of financials is viewed?
Yes, to some extent – businesses in more established, predictable industries are sometimes viewed slightly more favourably than those in highly volatile or seasonal industries, though this varies by lender and by the strength of your specific figures.

Can I combine one year of financials with a family guarantee to strengthen my application?
Potentially, yes – combining a shorter trading history with additional security through a guarantor can sometimes make an application more attractive to a lender that might otherwise be hesitant.

Newer business but trading well? Let’s see which lenders on our panel would genuinely consider your situation.

Phone: 02 7904 9560