It might be difficult to get a traditional business loan debt from a lender like a bank if you have a poor credit history or a low credit score. The bank sees you as too much of a risk to lend money to.
The good news is that there are several avenues to get financing for your company, independent of your personal credit history. Even if you have a low score because of a county court judgement (CCJ), missed payments, or defaulting on a loan or credit card.
A negative credit business loan can be obtained by any kind of business, including a single proprietorship, a newly formed firm, or a corporation. In this guide, we show you the top bad credit business loans today.
| Provider | Score | Details |
|---|---|---|
| 1. Aspire Business Loans | ★★★★★ | Learn more |
| 2. 365 Business Finance | ★★★★★ | Learn more |
| 3. ClearFunder | ★★★★★ | Learn more |
| 4. Fleximize | ★★★★★ | Learn more |
| 5. CubeFunder | ★★★★★ | Learn more |
| 6. Liberis | ★★★★★ | Learn more |
| 7. Amigo Loans | ★★★★★ | Learn more |
At a Glance, Pros and Cons
If you didn’t know the big picture, this section summarises the pros and cons of bad credit business loans in the UK.
| Pros | Cons |
|---|---|
| ✔️ Improve your credit rating by making timely loan payments — A higher credit rating will open up more funding opportunities in the future. Maintaining timely payments on a negative credit business loan demonstrates to lenders that your firm is financially stable. As a result, your credit rating will improve, making it possible to get lower interest rates on future loans. | ❌ Interest rates that reflect the increased level of risk you provide to lenders. If you need a loan and have terrible credit, you should expect to pay a higher interest rate. |
| ✔️ Faster company expansion — Made possible thanks to the availability of operating cash made possible by business financing. Companies with a less-than-perfect credit history may still get the working capital they need thanks to bad credit business loans. | ❌ A lower loan amount may be available to you if your credit is less than stellar. Poor credit consumers are often considered high-risk, thus lenders may only be willing to provide them with lower loan amounts. |
| ✔️ With repayment terms that are both flexible and manageable — Alternative lenders help ensure that credit is available to as many company owners as possible. Case-by-case loan reviews ensure that your company receives the financing solution that is most suited to its specific requirements. | ❌ A personal guarantee may help reduce the risk to the lender and may be required. In the event of a loan default by the company, you will be held personally responsible for the repayment of the loan. |
| ✔️ Funding availability — The liberty to spend your debt as you see fit. Any legitimate, business-related expense is fair game for the loan. | ❌ Fewer options available. Your firm may have to seek for a more niche lender if it needs to borrow money. |
Finding a negative credit business loan.
Here's what you need to do to qualify for a business loan while having negative credit:
- Investigate the financial health of your company by looking at its credit rating.
- Check to see whether your company can afford to borrow money at this time and avoid taking on too much debt.
- Find out what choices you have for your company by doing research.
- If you need money for your company, fill out an online application and tell them about it.
- They’ll help you find the best finance solution for your company. This won't have any effect on your credit score, depending on your service.
Top bad credit business loans — Reviews
Let’s get on with top-rated bad credit business loans in 2025. As always, you’ll need to check if yours is covered by the FSCS.
1. Aspire Business Loans — Best bad credit business loans
Here are a few advantages and characteristics of Aspire's bad-credit business loans.
- Finance and loan possibilities for those with low credit scores.
- Adaptable to varying credit histories.
- Six-month trading period minimum.
- Straightforward and open about all fees and other details.
- Affordable interest rates.
- Focus on helping out new and small enterprises.
- Borrow between £5,000 and £300,000.
- 1–5 year repayment periods.
- Application is quick and easy.
- Instantaneous decision.
Aspire is a business lending firm that offers loans for any credit position to companies that have been in operation for at least six months. In contrast to many conventional lenders, they are willing to look at every aspect of your situation.
Loan amounts from £5,000 to £300,000 are available through Aspire, with repayment terms ranging from 1 to 5 years. They state that their prices are competitive and that they provide transparent pricing and conditions to avoid any surprises. They provide an easy loan application procedure and decisions are made the same day.
2. 365 Business Finance — Popular alternative bad credit business loans
365 Business Finance offers business loans for those with negative credit, and here are some of the perks.
- Provides financing for a wide variety of companies that might otherwise have trouble obtaining it.
- Payday Loans / Advance Loans.
- Profit-based repayment is acceptable.
- Takes little time and effort to complete.
- Borrow between £5,000 and £200,000.
- There are no set conditions or fees.
- Payment terms might be adjusted.
- Lacks the need for collateral or a business plan.
- Using a single, comprehensive price.
- Committed client liaisons.
In the United Kingdom, 365 Business Finance is a supplier of merchant cash advance services for small and medium-sized enterprises. Payments are genuinely flexible and will reflect your business's profits thanks to the cash advance service's ability to borrow money and reimburse it via a percentage of card transactions.
The cash advance product from 365 Business Finance is a fast and easy way to get a loan from £5,000 to £200,000. They want to see your business succeed, therefore they provide loans with flexible payback periods and amounts that are deducted from your company's profits as they come in.
3. ClearFunder — Top bad credit business loans provider
Loans from ClearFunder provide the following features and advantages:
- Money borrowed after every factor is weighed.
- Developed for medium-sized enterprises.
- Obtainable loan amounts: £10K-£100K.
- There are 6-12 month payment plans available.
- Movable payment dates.
- Discounted prices.
- Accessible to a broad range of companies.
- For any reason at all.
- Simple and effective financial aid.
- Provides a quick estimate online.
Small and medium-sized enterprises may turn to ClearFunder for alternative financing alternatives in the form of business loans. Loans may be used for anything, and they cater to a broad range of company kinds. Instantaneous quotes may be obtained using a form on their website.
Loans for businesses from ClearFunder range from £10,000 to £100,000 for terms of 6 months to 12 months. They boast of offering cheap rates, a fast application process, and manageable monthly payments for their business loans. They provide one-on-one assistance to see you through the duration of the loan.
4. Fleximize — Flexible British bad credit business loans
Here are a few advantages and characteristics of Fleximize's bad-credit business loans.
- Small and Medium-Sized Enterprise Loans.
- Quick borrowing options.
- Loans with and without collateral.
- Loan amounts between £5,000 and £500,000.
- One-month to four-year leases.
- There are no covert costs.
- Can pay back in advance and save money.
- Personal contact manager.
- Get exclusive offers that no one else does.
- Provides access to a wide variety of useful resources for enterprises.
Fleximize is a web-based business lender that provides financing to small and medium-sized enterprises (SMEs). They boast an array of customizable solutions that will allegedly transform the corporate finance landscape.
Fleximize offers unsecured and secured business loans with repayment lengths ranging from 1 month to 48 months and amounts between £5,000 and £500,000. You may pay back your loan early and save money, and they can arrange loans quickly to suit your company's demands.
5. CubeFunder — Top bad credit business loan for any size business
Here are some of the characteristics and advantages of poor credit loans from Cubefunder:
- Give out loans for people with weak credit for a number of reasons.
- Failure to pay.
- Consolidating debt.
- Credit issues.
- Maintains a fair lending policy.
- Suitable for any kind of company.
- Unlimited access.
- Unguaranteed loans.
- Don't tack on hefty late fees or interest rates.
- There will be no repercussions on your credit report.
If you have a poor credit score, have missed payments in the past, or need a business loan, check out Cubefunder, an alternative lending company. They boast that they welcome applicants from any industry and provide prudent loans to anyone.
Bad credit at Cubefunder Commercial loans are unsecured loans that are tailored to the needs of businesses and don't need collateral or a guarantor. If you are unable to make a payment, they also pledge not to impose excessive late fees or interest rates.
6. Liberis — Alternative non-bank, bad credit business loans
What makes Liberis's bad-credit business loans so attractive, and how you can take advantage of them?
- Advance loans for companies.
- Intended to help small and medium-sized businesses expand.
- Borrow between £2,500 and £300,000.
- Having a single, consistent expense.
- Provides a lot of positive feedback.
- Modified payment schedules.
- Repay the loan with a certain proportion of future credit card sales.
- Unguaranteed Loan.
- There won't be any surprise costs.
- The absence of late fees.
Liberis is a non-bank lender that gives small companies access to cash quickly via their business cash advance service. Their target market consists of companies that have been operational for at least four months and are bringing in more than £2,500 per month in card sales.
With a Liberis business cash advance, you may get capital of up to £300,000 with no set payback terms, since the loan is repaid based on a percentage of your card sales. This means that as your company expands, so will the rate at which you return the loan. There are no additional costs, such as those associated with late payments, for this unsecured loan.
7. Amigo Loans — Poor credit personal and business loans (Bonus provider)
As a last side-mention: another UK-based company that caters to borrowers with spotty credit records is called Amigo Loans.
You'll need a guarantor who can back up your loan application and have a strong credit score to use their services, which sets them apart from the other two lenders.
The guarantor's role is similar to that of a cosigner in a loan application, providing the lender with an extra layer of protection and enhancing the applicant's chances of acceptance.
If you have a low credit score but still need a loan, this is a great alternative since you don't have to worry about your score affecting the terms of the loan.
To put it numerically, Amigo Loans provides guarantor loans with amounts as high as £10,000 and interest rates as low as 49.9% APR.
Top bad credit business loans — Buying Guide
Let’s explore bad credit business loans further as a topic.
Understanding bad credit loans
Just what does it mean when someone says they need a loan yet have terrible credit?
Bad credit loans are intended for borrowers with less-than-stellar credit ratings. However, the term “bad credit” may be too dramatic in other cases.
If you've had trouble getting a loan from a traditional lender like a bank, it may be because of your credit history. However, there are two things you need to know. To begin, know that you are among millions of individuals in the UK who are struggling with low credit ratings. Second, there is assistance available.
Even if you have a poor credit history, you may still qualify for a loan. Borrowers with poor credit histories may find it difficult to get financing from traditional sources. After all, we don't believe that your credit score should prevent you from pursuing your goals.
Obtaining an unsecured business loan
Lenders will be hesitant to provide credit to a company no matter how successful it is because of red flags like past due payments or CCJs in the company's credit history.
The number of lending platforms and lenders willing to provide firms with non-bank loans has increased dramatically during the last decade. You can acquire company financing even if you have bad credit since more and more banks are willing to take a chance on high-risk enterprises.
However, the capacity to utilise collateral to reduce the lender's risk will vary from company to business and application to application. When extending credit, financial institutions always want some kind of collateral to reduce their exposure to the possibility of a borrower's firm going bankrupt.
My application was denied; now what?
Some loan companies have an open-door policy. But if you have applied to us or any other poor credit direct lenders in the UK previously and been turned down, we advise you to wait before applying again.
You may expect to see each ‘hard' credit search associated with an application included on your credit report. Lenders may overlook one or two of them, but a slew of them will cause you trouble. This makes it considerably more challenging to apply for a loan when you have a poor credit score. Learn the difference between soft and hard credit checks with our help.
If you want to know what's holding you back, just look at your report. Concerns about finances may be discussed in private and without cost. Please contact one of the following organisations for assistance.
- 📖 Budget deficit
- 📖 StepChange
- 📖 MoneyHelper
Reasons why lenders care about your credit score
Banks and other financial institutions don't loan money to companies because they're nice people; they expect to be repaid, plus interest.
For this reason, they check your credit rating. Credit scores are one way that lenders evaluate whether or not they can trust you with money. If you tend to pay back your debts on time, for instance, it will help your credit rating. However, if you have a history of late payments or loan defaults, this will show up in your credit score and report.
Lenders assess your credit score to determine whether they should provide credit to you and the likelihood that you will repay that credit if they do.
Implications of credit score in obtaining a loan
Your credit score might affect not just your ability to secure finance, but also the terms under which you get funding.
A higher credit score increases the likelihood of loan approval. However, your chances of approval go down if you have a poor credit score.
If you are authorised for a loan, the terms and circumstances, such as the interest rate and the total amount, may change based on your credit score. You may get better loan terms, interest rates, and principal amounts when your credit score is greater.
However, if your credit score is worse, lenders may be wary of your capacity to repay a loan, leading to a lesser loan amount, higher interest rates, and shorter payback periods.
Naturally, you're seeking to improve your credit rating. What about boosting it, though?
Reasons why lenders care about your credit score
Banks and other financial institutions don't loan money to companies because they're nice people; they expect to be repaid, plus interest.
For this reason, they check your credit rating. Credit scores are one way that lenders evaluate whether or not they can trust you with money. If you tend to pay back your debts on time, for instance, it will help your credit rating. However, if you have a history of late payments or loan defaults, this will show up in your credit score and report.
Lenders assess your credit score to determine whether they should provide credit to you and the likelihood that you will repay that credit if they do.
Leading bad credit business loans: The Verdict
How can I improve my credit score so that I may apply for a business loan?
Here are some things you can do to improve your application's chances of being accepted:
✔️ Think about getting financing from a specialised lender. Numerous loan providers don't need applicants to have flawless credit, but they do want evidence of steady revenue growth and the ability to repay the loan.
✔️ Think about using a service that connects borrowers and lenders. A competent loan matching service can examine a wide variety of lenders in a short amount of time and will only recommend those with whom you have a reasonable probability of being approved via soft searching (credit checks that do not negatively affect your score).
✔️ Take baby steps. A lender's risk increases in proportion to the size of the loan. It's possible you'll have to settle for a lesser loan amount than you'd want.
✔️ Choose the best loan term wisely. As far as a lender is concerned, the longer the loan period, the more time there is for bad things to happen. Loans with shorter durations tend to have larger monthly payments, which might make them unaffordable. Choose the smallest loan term that yet leaves you with a comfortable monthly payment.
✔️ Try providing some kind of guarantee. Lender risk may be reduced by the use of security, such as an asset or personal guarantee.
✔️ Repair your credit report. Learn what's on your credit report, dispute any inaccuracies you find, and try to raise your score through responsible debt management.
For more, see our top business loan accounts.
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