When your credit isn't perfect
Bad Credit Business Loans
Bad credit business loans are funding options for businesses or directors with CCJs, defaults, missed payments or a low credit score. Specialist lenders look beyond the score at your recent trading, cash flow and any security you can offer.
Funding Plus knows which lenders on our panel consider adverse credit, so you don't collect more declined applications on your file.
- Lenders that consider CCJs and defaults
- Secured, asset-backed and revenue-based options
- No impact on your credit score to get quotes
Reviewed by the Funding Plus team · Last updated October 2026
Step 1 of 3 · Bad Credit Business Loans
How much do you need?
Takes about a minute. No impact on your credit score.
Bad Credit Business Loans at a Glance
- Amounts
- £5k – £1m
- Terms
- 3 months – 5 years
- Decision
- 1 – 10 days
- Security
- Often helps
- Best for
- Adverse credit history
Typical figures across the market. Your offers depend on your business, the lender and the security available.
How Bad Credit Business Loans Work
- 1Be upfront about your creditTell us about any CCJs, defaults or arrears. It helps us avoid lenders who'll decline.
- 2We pick suitable lendersLenders that weigh current trading and cash flow over past credit problems.
- 3Compare your optionsThis may include secured loans, asset finance or a merchant cash advance.
- 4Apply with one lender at a timeFewer hard searches on your file keeps your options open.
How Much Do Bad Credit Business Loans Cost?
Expect to pay more than a business with clean credit, because the lender takes on more risk. Offering security, a larger deposit or a guarantor can bring the price down noticeably.
- Higher interest rates than standard loans
- Lower limits until you build a track record
- Security or a personal guarantee often required
- Watch for high fees from lenders that target poor credit
Worked example
Borrowing £30,000 over 2 years
- Loan amount
- £30,000
- Interest rate
- 25% a year
- Monthly repayment
- £1,601.15
- Total interest
- £8,427
- Total repayable
- £38,427
Illustrative only, not a quote. Rates for adverse credit vary widely, and security can reduce them.
Who Can Get Bad Credit Business Loans?
- Steady recent income through a business bank account
- Problems that are settled, explained or improving
- Affordability for the repayments
- Security or assets help but aren't always required
- No current insolvency proceedings
What You'll Need to Apply
- 6 months of business bank statements
- Details of any CCJs or defaults and whether they're satisfied
- Latest accounts or tax returns
- Information on any security available
Pros and Cons of Bad Credit Business Loans
Advantages
- Access to funding when banks say no
- Can rebuild your credit record with on-time payments
- Several product types to choose from
- Some lenders focus purely on current trading
Things to watch
- Higher cost than standard loans
- Smaller amounts at first
- Personal guarantees or security are more likely
- Missed payments will make your credit worse
Funding That Can Work With Bad Credit
Secured business loans
Security reduces the lender's risk, so past credit problems matter less.
See secured loansAsset finance
The equipment or vehicle secures the deal, which many lenders accept with adverse credit.
See asset financeMerchant cash advance
Based on your card takings rather than your credit score.
See merchant cash advancesBad Credit Business Loans vs Other Options
| Option | Best for | Typical speed | Security |
|---|---|---|---|
| Bad credit business loan | Businesses with adverse credit | 1 – 10 days | Often helps |
| Merchant cash advance | Card-taking businesses | Days | None |
| Asset finance | Buying equipment | Days | The asset |
| Secured business loan | Property owners | 2 – 6 weeks | Property |
Who Uses Bad Credit Business Loans?
Adverse credit affects businesses in every sector, especially after a difficult few years.
Customer story
“[Real customer story for Bad Credit Business Loans: what they needed, how quickly it was arranged and what it let them do.]”
[Name], [Role], [Business name] · [Amount] bad credit business loan
Bad Credit Business Loans FAQs
Can I get a business loan with a CCJ?
Yes, some lenders will consider it, especially if the CCJ is satisfied, more than a year old or has a clear explanation.
Will applying make my credit worse?
Getting quotes through us uses no hard search. A full application does, so we help you apply only to lenders likely to say yes.
What's the easiest funding to get with bad credit?
Merchant cash advances, invoice finance and asset finance tend to depend less on credit history than unsecured loans.
Do I need a guarantor?
Not always, but a guarantor or security can improve your chances and lower the rate.
How can I improve my chances?
Settle any outstanding CCJs, keep your bank account in credit, file accounts on time and avoid lots of applications in a short period.
Related Guides
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