Lendus.

Business loans for bad credit

Can I get a business loan with bad credit?

Sometimes, at a higher price. Lenders that assess live trading data through Open Banking can be more flexible where current performance is strong even if the credit file is imperfect. What narrows the field fastest is not a low score but active County Court Judgments, current insolvency proceedings, or recent missed payments on existing finance. Specialist lenders do serve this market, and the trade-off is always rate rather than availability.

Updated . Lendus is an introducer, not a lender.

200+ UK lenders
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No credit check to apply
FCA-regulated brokers

How it works

  1. 01 The business applies through a specialist lender or broker that looks beyond the credit score, usually asking for recent bank statements to assess current trading rather than the historic file alone.
  2. 02 The lender checks for the specific issues that actually block approval: any active County Court Judgments, current insolvency proceedings, or payments missed in the last few months, rather than the score itself.
  3. 03 Where the business is otherwise trading well, the lender prices the loan higher than a standard facility to reflect the added risk, rather than declining outright.
  4. 04 Funds are released, usually on a shorter term and smaller amount than a mainstream facility would offer, with repayments monitored closely in the early months.

What lenders typically look for

What to watch for

A poor credit file alone rarely closes every door, but it always increases the price. Before accepting a higher-rate facility, ask for the total cost of borrowing in pounds, not just the headline rate, since fees can be loaded onto a bad-credit deal. Be equally wary of brokers who ask for a fee upfront before any offer is made; reputable specialist lenders and brokers are paid on completion, not for an application.

Lenders on our panel

Lender Facility size Published rate Minimum trading
Aldermore Bank £2k–£10m 4.5%–20% 12+ months for most products
Allica Bank £25k–£15m 9.90%–13.75% 3+ years of filed accounts for unsecured business loans; 2+ years of financial accounts for commercial mortgages
Bibby Financial Services £50k–£15m 1%–3% 6+ months preferred; startups with strong order books considered
Bizcap £10k–£500k 1.5%–5% At least 4 months
Capify £4k–£500k 1.1–1.5 4+ months for merchant cash advance; 6+ months for business loan
Capital on Tap £1k–£250k 1.25%–3% 12+ months
Close Brothers £10k–£5m 5%–18% 24+ months
Cynergy Business Finance £200k–£40m Not published Not publicly stated by Cynergy Business Finance. Eligibility appears to be assessed on the strength of the underlying receivables, stock, property or other assets on a per-business basis rather than against a published minimum years-trading threshold.
Fleximize £5k–£500k 0.9%–3.9% 6+ months
Funding Circle £10k–£500k 6.9%–36% 1+ year
Investec £5k–£100m Not published Not publicly stated. Investec assesses each business individually rather than publishing a minimum trading history requirement.
iwoca £1k–£500k 2%–6% 3+ months
Kriya £50k–£1m Not published Minimum 12 months trading with at least one set of financial accounts filed for invoice finance and working capital loans. Kriya's PayLater product has a lower minimum of 3 months trading.
LendingCrowd £25k–£500k 6%–18% 24+ months
Nucleus Commercial Finance £3k–£2m 1.5%–5% 6+ months
OakNorth Bank Not published Not published No fixed minimum published; trading history is one of several factors assessed case-by-case
Paragon Bank £5k–£1m Not published Not publicly stated; assessed as part of underwriting.
Shawbrook Bank £50k–£25m 0.55%–1.25% 12+ months preferred; none required for property-backed bridging
Start Up Loans £1k–£25k 7.5%–7.5% For start-ups: no trading history required. For existing businesses: must have been trading less than 60 months
ThinCats £1m–£30m Not published Not stated as a fixed minimum number of years; ThinCats lends to established mid-sized SMEs rather than start-ups or very early-stage businesses.
Tide £1k–£500k 7.9%–49.9% 12+ months for credit products; account available from day one
White Oak UK £5k–£500k Not published Not publicly stated; assessed as part of underwriting.

As published by each lender and dated on its own page. Indicative, not offers.

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Frequently asked questions

What actually stops a business getting approved for bad credit finance?
It is rarely the credit score by itself. Specialist lenders in this market exist precisely because a low score does not automatically mean decline. What tends to block an application is something more specific: an active County Court Judgment that has not been satisfied, current insolvency proceedings such as a live CVA or winding-up petition, or payments missed on existing finance within the last few months. A historic default from several years ago, sitting alongside otherwise steady current trading, is far less of a barrier than any of those three live issues, which is why it is worth checking the credit file for exactly what is showing before applying.
How much more expensive is a bad credit business loan?
Meaningfully more, because the lender is pricing in a higher chance of default. The exact gap depends on how poor the credit history is and how strong current trading looks, but bad-credit facilities generally sit well above standard commercial rates, and the loan amount and term on offer tend to be smaller and shorter too. The way to control the cost is to compare the total amount repayable across a small number of specialist lenders rather than accepting the first offer, and to be alert to arrangement fees that can push the real cost well above the headline rate quoted.
Will a broker guarantee me finance with bad credit?
No legitimate broker can guarantee an outcome, because the decision always sits with the lender, not the broker. Approach any broker making that promise with caution. A more serious warning sign is a broker asking for a fee before any offer has been made; reputable brokers in this market are paid a commission by the lender on completion, or agree a fee with the business only once funding is actually in place. Paying upfront for the promise of access to lenders is one of the most common ways businesses with poor credit lose money without ever getting a loan.
Can a County Court Judgment be removed to help my application?
A CCJ that has been paid in full within one month of the judgment can be removed from the register entirely, which is worth doing before applying if the payment is affordable. One paid after that window, or partially paid, is marked as satisfied rather than removed, and lenders can still see it, though a satisfied CCJ is viewed far more favourably than an unpaid one. An active, unpaid CCJ is one of the more common reasons a bad-credit application is declined outright, so checking the credit file and clearing what can reasonably be cleared before applying is usually worth the delay.

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