Last updated: 27 May 2026

BAD CREDIT LOANS - MATCH YOUR BUSINESS WITH THE RIGHT LENDERS

Get a business loan with bad credit

A poor credit score can make funding harder to access, but there are still options available. These loans are designed for business owners with low credit scores who still need capital to run or grow their business.

Capitalise matches UK businesses with specialist lenders, helping you find the right option with no impact on your score.

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What is a bad credit business loan?

A bad credit business loan is funding designed for businesses with a low, limited, or impaired credit score. Where high street banks rely heavily on credit history, specialist lenders look at a broader picture, your revenue, cash flow, and trading performance.

Whether your business has CCJs, a history of late payments, or simply hasn't been trading long enough to build a strong credit file, there are lenders who can help. These loans exist so businesses can keep operating and growing, even when traditional lenders say no.

How does a bad credit business loan work?

A bad credit business loan works much like a standard business loan: you borrow a lump sum and repay it over an agreed term, plus interest. The main difference is how lenders assess your application. Instead of focusing only on your credit score, specialist lenders look more closely at your business’s current performance including monthly revenue. This helps them decide whether your business can realistically afford the repayments. Because lending to businesses with poor credit carries more risk, interest rates are usually higher. Some lenders may also require security, such as business assets, or ask for a personal guarantee from the business owner.

What types of loans are available for businesses with bad credit?

  • Merchant cash advance

    A merchant cash advance is repaid through a percentage of your daily card sales, making it a flexible option for businesses with variable revenue.

    Learn more

  • Secured business loans

    A secured business loan uses property, equipment, or other assets as security, which can help you access larger amounts and better rates with bad credit.

    Learn more

  • Business credit cards

    A business credit card gives businesses flexible access to credit for managing cash flow, covering everyday expenses, and spreading the cost of purchases over time.

    Learn more

  • Asset finance

    Asset finance helps businesses spread the cost of equipment or vehicles over time, with the asset itself acting as security.

    Learn more

  • Invoice finance

    Invoice finance unlocks cash tied up in unpaid invoices, using your invoices as security so your credit score has less impact.

    Learn more

How to qualify for a bad credit business loan?

Lenders that specialise in bad credit business loans focus on whether your business can realistically afford the repayments, rather than just your credit score. Generally, the stronger your trading history, monthly revenue, and recent bank statements, the better your chances of approval. Some lenders may also look for no active CCJs and may require a personal guarantee or security as part of the application.

Don’t worry if you don’t tick every box. Our funding specialists will help you understand all the funding options available to you.

How to get a bad credit business loan?

  • Green circle with a white number "1" in the center.

    Apply through Capitalise

    With access to 130+ lenders and expert funding specialists, we'll match your business with lenders most likely to approve your application. Just complete one quick online application with details about your business, funding needs, and trading history to explore suitable funding options.

  • Green circle with white number "2" in the center.

    Speak with a funding specialist

    Your dedicated Capitalise funding specialist will guide you through the process, explain your options, and help prepare and submit the required documents to suitable lenders. They’ll work to improve your chances of approval by matching you with lenders that fit your business profile.

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    Compare offers and receive funding

    Once any offers come back from lenders, your funding specialist will help you compare them side-by-side, including interest rates, repayment terms, fees, loan flexibility, and overall cost of borrowing. If you accept an offer and complete the lender’s checks, funds can often be transferred within 24 hours.

What to avoid if your business has bad credit?

If your business is already dealing with a low credit score, it's important not to make the situation worse. Things to avoid include:

  • Applying to multiple lenders individually in a short space of time as each hard search can lower your score further

  • Ignoring existing CCJs or debts, unresolved judgements will continue to affect applications

  • Missing further payments while seeking finance. Payment history is one of the biggest factors in lending decisions

  • Borrowing more than your business can realistically repay, this risks deepening the cycle of poor credit

How to improve a low business credit score?

If your credit score is stopping you from accessing finance, there are practical steps you can take to improve it. Start by checking your business credit report to understand what’s affecting your score. Paying down existing debts, resolving any CCJs, and using a business credit card responsibly can all help strengthen your credit profile over time.

It’s also important to keep your business information consistent across Companies House, HMRC, and your bank account, and for sole traders, registering on the electoral roll can help lenders verify your identity.

Why choose Capitalise to find a low credit business loan?

Capitalise is a free, FCA-regulated platform that helps UK business owners compare funding options from specialist lenders across the market. Instead of applying directly with a single bank or lender, you can compare 130+ UK lenders in one place, including lenders that specialise in bad credit business loans.

You can also check your business credit score for free before applying and get a clearer understanding of which lenders are most likely to approve your application, helping reduce unnecessary credit searches.

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