Can I get a business loan with bad credit?
Yes. Specialist business lenders assess your application on the health of your business — turnover, trading history, cash flow — alongside your credit history. A business that is trading profitably with consistent revenue has significantly more options than a business in financial difficulty, regardless of the director's personal credit history.
Unsecured business loans
Based on trading performance and cash flow. Typically up to £150,000. Decisions can be very fast.
Secured business loans
Backed by property, assets or a personal guarantee. Higher amounts available. Lower rates than unsecured.
Director guarantees
Many lenders require a personal guarantee from directors. Your personal credit history is then also assessed.
Asset-backed
Funding secured against specific assets — plant, machinery, vehicles, commercial property.
How do lenders assess bad credit business loan applications?
Alternative and specialist business lenders typically look at: monthly bank statement turnover, profit and loss trend (are things improving or deteriorating?), the purpose of the loan and how it will help the business, and the overall credit picture — including what has caused the adverse credit and whether the situation has stabilised.
A director with a CCJ who has a growing business with consistent cash flow is a very different risk profile to a director whose business is in decline. Tell us the full story — it matters.
What is a personal guarantee?
A personal guarantee (PG) is a commitment by a director or business owner to repay the loan personally if the business cannot. If you provide a PG, your personal credit history becomes relevant to the lender. Specialist lenders are more flexible about adverse personal credit than high-street banks — but you should understand that a PG puts your personal assets at risk.