Business Loans For Bad Credit UK

Lets look at what business loans for bad credit are available to UK companies.

If you are a company director or owner and your credit is not great, there may still be finance options available for you.

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Bad Credit Business Loans

Whether its past insolvencies, director bad personal credit score or company CCJ’s, certain business loan options may still be available. However your individual circumstances will dictate which options are available and will vary from business to business.

Also another important factor is what purpose the business loan is for. There are hundreds of lenders that specialise in specific types of business finance, with many of them willing to consider bad credit. The purchase of an asset like a vehicle or property may be easier than just general cashflow funding.

So read on the find out what options there are.

Can You Get Business Loan With Bad Credit?

The short answer is yes, you may be able to get business loan even if you have bad credit. However the longer answer is it depends on your circumstances. If you have assets to secure the finance against, then it will be much easier to find a supportive bank/lender.

What Types of Assets Can You Lend Against?

Any of the following might be used to provide security for a business loan.

  • Commercial Property
  • BTL Property
  • Main Residence
  • Vehicles – Cars, Vans, HGV etc
  • Equipment & Machinery
  • Debtor Book
  • Work In Progress (WIP)
  • Valuables
  • Stock & Inventory
  • Stocks, Shares, Investments
  • Other Businesses You Own
  • Third Party Guarantor

Its worth noting that any security you provide for a business loan, could be at risk of repossession if you fail to keep up with the payments.

What If I Don’t Have Any Assets?

If you don’t have any specific asset to secure against there are still a few options. However it would be very likely that you would need to meet the following criteria:

  • Business Trading More Than 2 Years
  • Annual Accounts Prepared
  • Making a profit (Profit & Loss)
  • Positive Net Worth (Balance Sheet)

Also if the owner/director(s) have a positive net worth, then they may need to give a personal guarantee for any lending. Understanding if its the business or business owners personally that have bad credit, is important in ascertaining what lending may be available.

Continue reading below to see what the different lending types are.

Speak To A Business Finance Expert

At Bolton Business Finance we are experienced at supporting companies across the UK with poor credit to secure funding. Get in touch today.

If you have bad credit and would like to speak with one of our funding experts please call 0161 5469128 or submit the quick contact form below.

Different Types of Loans With Bad Credit For Business

Lets take each potential option one by one and discuss what it is and what type of circumstances its available for.

If you have a CCJ, it may be worth reading our specific article “Business Loans With A CCJ“.

Unsecured Business Loans For Bad Credit

Perhaps the more difficult to get accepted for, an unsecured loan is most suitable for established businesses with minor bad credit. Some unsecured lenders will still accept applications from businesses with small CCJ’s or a small number of missed payments.

Secured Business Loans For Bad Credit

If you have sufficient equity in a property then this could be used to apply for a secured business loan or bridging loan. The property either needs to be mortgage free or have a mortgage usually under 50% LTV. There are many providers that will lend to businesses and individuals with poor credit who have security available.

Invoice Finance & Factoring With Bad Credit

If your business is owed money from its customers, then this is an asset that you can use to raise finance for your business. Invoice Finance (Factoring is a type of Invoice Finance) give you instant access to unpaid customer invoices. They do this by purchasing the debt and therefore can accept businesses with bad debt, as they have security.

Basics Criteria for Invoice Finance:

  • Trade B2B
  • Trade on credit terms e.g. your customer has 30 days to pay
  • Turnover Above £50,000 per year (or predicted for start ups)

Its also possible to do this against one single invoice if its over £10,000.

Commercial Mortgages

Provided you have sufficient equity or deposit (Usually minimum of 25%), then it may still be possible to get a commercial mortgage. If you have bad credit then you will likely have to pay a higher interest rate than normal.

Asset Finance For Bad Credit

It is still possible to get finance with bad credit for assets like cars, vans, trucks, equipment and machinery. This could be for a new purchase or to release money from existing assets a business owns. A new purchase will still usually require a deposit or at least 10% and to refinance there need to be sufficient equity in the asset.

Business Loans For Sole Traders With Bad Credit

The same options we have discussed above are usually available to sole traders as well as limited companies. There are some lenders that only deal with Limited companies but there are many that will accept sole traders.


In summary there are lots of different types of business loans and lending facilities available in the UK. A very wide number of circumstances are catered for and just because you have been declined elsewhere, does not mean nothing is available.

Depending on the reasons why you have bad credit, sector and turnover, will all have an effect on your available loan options.

Its recommended to speak with an expert commercial finance broker such as ourselves. This will help your quickly narrow down your search and find an appropriate bank or specialist lender.

Apply Below For A Business Loan

We can speak to you about your specific circumstances and access what finance options may be available to you. Regardless of your company or personal credit circumstances, we may be able to assist.

Call 0161 5469128 or fill in the form below

For a free no obligation assessment, fill in the form below.


This post is purely for educational purposes and does not constitute advice.