- Who it's for
- UK Ltd companies, PLCs and LLPs with adverse credit
- Typical amounts
- From around £5,000 up to £1,000,000, depending on turnover and product
- Typical terms
- 3 months to 5 years
- Minimum turnover
- £100,000 a year to use Lending Box
- Security
- Often unsecured with a personal guarantee; secured options exist
Indicative only. Subject to lender assessment and approval.
Who it's for
- Limited companies with county court judgments (CCJs), satisfied or unsatisfied, against the business or a director.
- Businesses with missed payments or defaults on file, or a low business credit score from agencies such as Experian, Equifax or Creditsafe.
- Directors with a weaker personal credit history, including past arrangements or late payments.
- Companies that were declined by their bank but are trading steadily, with regular income visible in their bank statements.
How it works
- 1You tell us about the company, how much you need and what it's for. We look the company up at Companies House.
- 2You share 3–6 months of business bank statements. These matter more than usual with adverse credit, because they show current trading.
- 3We compare your profile with lender criteria across the market — some lenders exclude recent CCJs, others accept them with conditions.
- 4A specialist talks you through the realistic options and costs before anything is submitted. A lender then makes its own decision, including its own credit checks.
What lenders mean by "bad credit"
There's no single definition. Each lender sets its own rules about what it will accept. When a lender reviews your application it typically looks at the company's credit file and the personal credit files of the directors. The things that most often cause problems are:
- County court judgments (CCJs) — especially recent, large or unsatisfied ones.
- Defaults and missed payments on loans, cards or utilities.
- Insolvency events — a director's previous company that went into liquidation, or personal insolvency.
- Overdue filings at Companies House, such as late accounts or confirmation statements.
- Lots of recent credit searches, which can suggest a business is struggling to get funding.
What lenders look at instead of (or as well as) your score
A credit score is only one input. Many alternative lenders give at least as much weight to how the business is performing now. That's why your bank statements matter so much. Lenders typically look for:
- Steady, regular income into the account rather than one-off lumps.
- An average balance that comfortably covers the new repayment.
- Few or no days overdrawn and no returned or bounced payments.
- Sensible levels of existing borrowing, without several short-term lenders already being repaid.
- Turnover that supports the amount requested — lenders often size offers as a share of annual turnover.
Finance types that are often more open to adverse credit
No product is guaranteed, but some are structured in a way that lets lenders rely less on credit history:
- Revenue-based finance (merchant cash advance) — repaid as a share of card takings, so repayments flex with sales.
- Invoice finance — the lender advances money against invoices owed by your business customers, so their credit quality matters too.
- Asset finance — the asset itself (a van, machine or equipment) gives the lender security.
- Secured business loans and bridging — property security can open up options when credit is weak.
- Shorter-term unsecured loans from specialist lenders that underwrite mainly from bank data.
How to improve your chances
Small steps before you apply can make a real difference:
- Satisfy any outstanding CCJs and get a certificate of satisfaction; lenders view settled judgments more favourably.
- Bring Companies House filings up to date.
- Check your business and personal credit files for errors and ask the agency to correct them.
- Keep the business account in credit and avoid returned payments for a few months before applying.
- Avoid making several applications at once — check your options first, then apply where there's a realistic fit.
- Be upfront. Explaining a past problem (a lost customer, illness, a one-off dispute) helps a specialist present your case properly.
How a broker helps
With adverse credit, applying to the wrong lender wastes time and can leave another search on your file. As a whole of market broker, we know which lenders exclude CCJs or defaults, which consider them with conditions, and which focus on bank data. We show you indicative options first, then a specialist explains what each one would really involve before you decide to go ahead.
Our service is free to your business. We're paid a commission or finder's fee by the lender if finance completes; see our Broker Terms for details.
Eligibility
- A UK limited company, PLC or LLP (we can't help sole traders or partnerships).
- Annual turnover of at least £100,000.
- Usually at least 6–12 months of trading; some products need longer.
- A business bank account showing regular income.
- Directors who are UK residents and willing, in most cases, to give a personal guarantee.
Documents you'll need
- Your last 3–6 months of business bank statements (PDF or CSV).
- Your latest filed accounts, and management accounts if your year-end was a while ago.
- Details of any CCJs or defaults: dates, amounts, and whether they are satisfied.
- Details of existing loans or finance agreements and their monthly repayments.
- Photo ID and proof of address for directors, when the lender asks.
Advantages
- Lenders that focus on current trading can look past an old credit problem.
- Revenue-based and invoice-based products are linked to money coming in, which suits businesses with a thin or damaged credit history.
- Successfully repaying new finance on time can help rebuild your business credit profile.
- A broker knows which lenders exclude adverse credit, so you avoid unnecessary applications.
Things to weigh up
- Costs are usually higher than for businesses with clean credit, reflecting the lender's risk.
- Amounts may be lower, terms shorter, or a personal guarantee or security more likely.
- Recent or unsatisfied CCJs narrow the market considerably.
- Several hard credit searches in a short period can make things worse — another reason to check options first.
Worked example (illustrative)
A building services company turns over around £420,000 a year. One director has a £2,300 CCJ from three years ago, now satisfied. Monthly income into the business account is steady and the account has stayed in credit.
The company wants £40,000 to fund materials for new contracts. A mainstream bank declines because of the CCJ. A specialist lender that underwrites from bank statements could consider the application over 12–24 months, with a director's personal guarantee.
Using the business loan calculator below, £40,000 over 18 months at an illustrative 18% a year works out at roughly £2,550 a month. The real rate depends entirely on the lender's assessment.
Business loan calculator
Monthly repayment
£2,307.25
- Total repayment
- £55,373.91
- Total interest
- £5,373.91
Representative example: borrowing £50,000 over 24 months at 10% a year would cost £2,307.25 a month, £55,373.91 in total, including £5,373.91 interest.
Illustrative only. Your actual rate depends on your circumstances. Indicative only. Subject to lender assessment and approval.
Frequently asked questions
Related guides
Lending Box helps UK businesses access business finance, working directly with businesses and their trusted advisers. We are a credit broker and do not provide loans ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 or over, and terms and conditions apply. Guarantees and indemnities may be required. Lending Box can introduce applicants to a number of providers based on each applicant's circumstances and creditworthiness. We can also make insurance introductions. Lending Box will receive a commission or finder's fee for arranging such finance and insurance introductions. Broker Terms