Bad credit business loans

Obtaining traditional financing may be challenging if you have poor credit. However, there are numerous finance options accessible, meaning you are still able to obtain the capital you require to expand your business. Even with a poor credit history, your company can still benefit from the alternative finance lenders we have available. A bad credit business loan can help improve your business credit score and credit file, if you stick to your agreed repayments and manage to keep on top of any other financial obligations.

Apply for an adverse credit business loan

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How does it work?

Fill in our form​

A member of the team will be in touch to collect some basic information. This helps us understand the type of funding that would best suit your business.

We find the best funding for you

We use the information you provided to source the best funding options for you and your business using our panel of over 250 lenders.

We present your options

We’ll then present you will all of the funding options available to you and give you time to decide which one you would like to proceed with.

You may find it difficult to obtain a business loan from a bank or other traditional financing provider if you have a poor credit score, whether it be from your personal credit or company credit file. A lender will view you as too risky to borrow money. There are still numerous choices, so it is still achievable to obtain the funding your company requires to expand.

Depending on your situation, it may still be feasible to get businesses with bad credit funding from business finance providers, even if you’ve struggled to achieve finance in the past.

If I have a bad credit history, can I still acquire a business loan?

Yes, depending on the situation with your current business and previous business debt. Lenders like security – this can be provided through your merchant provider as a Merchant Cash Advance, against a business asset such as property, vehicles or machinery and outstanding invoices. A business cash advance can come in many different forms of unsecured loans.
Here at Smart Funding Solutions, we have numerous funding options, whether you’re a sole trader, limited company or partnership. You’ll find startup business loans hard to come by if you have a history of credit difficulties, this can be overcome by looking at a secured business loan.
Start up loans via the secured finance route will be difficult as you don’t have any revenue history, along with little to no business credit score.

Various underwriting strategies are used by commercial credit providers. This could involve examining your company’s revenue & profit, in addition to its reputation, testimonials, and profiles on social media. Lenders will also evaluate your credit report, growth potential, and affordability to make repayments. If your company experiences sales swings or a cash flow crisis, this is a common occurrence for many firms. Do not let your company’s poor performance discourage you from applying.

A merchant cash advance is a popular way to achieve cash flow loans, if you have adverse credit. Many different types of business qualify, as long as you take card payments you’re halfway there. Bad credit scores aren’t underwritten harshly, with each application looked at on an individual basis with a human touch. Online applications can often be submitted, making the process quick and easy. Capital loans can come with flexible repayments, term loans are fixed repayments over an agreed period.

The following factors may also be taken into account by lenders:

Any business or personal County Court Judgments – Lenders could consider the volume and regularity of your judgments. Don’t allow a CCJ to discourage you from applying; you might be pleasantly surprised by the result.

Lenders have a better overall understanding of your firm thanks to these strategies, they take all of the information into account such as the reason for the CCJ, and the amount and length of time ago it was. As a result, lenders are considerably more inclined to accept a commercial loan than they would be if they were only considering your past credit score.

Because of these factors, obtaining money for your business through online business loans is becoming more and more common.

What credit score is required for a business loan?

The type of loan product you are applying for and the lender will determine the minimum credit score your company needs to be funded. Each lender has its own criteria for bad credit ratings, and several underwriting strategies enable providers for bad credit loans to understand your company’s whole image. Lenders can offer much less stringent credit standards than traditional lenders, making it simpler to acquire financing from alternative finance sources. Some lenders will even factor in your personal credit score and current levels of personal debt.

What do you qualify for?

Several alternative funding solutions can be customised to meet the demands of your company even with a low credit rating or a damaged credit history.

These consist of:

Merchant Funding

Merchant Funding

Merchant cash advance or revenue-based loans are available to companies accepting credit, debit cards and/or sell online. This is a quick and adaptable business lending solution that can be funded quickly. The lender will deduct a portion of card sales, usually over a 9-12 month period, to pay back the loan. Lenders will typically borrow 1-2.5x of your monthly turnover. We can assist businesses in England and Wales, Scotland and Northern Ireland.

Franchise Loans

Secured loan

Can be guaranteed by or secured against property or other types of commercial or personal assets. This loan may be for a large sum, up to £25 million. The asset that the loan is secured against will be taken as payment if you don’t make the required instalments.

How much does Personal Guarantee Insurance cost?

Unsecured commercial loan

Security or collateral is not required for an unsecured business loan. Funding is arranged quickly and repayments are either daily, weekly, or monthly depending on the lender and alternative funding solution.

A franchisor will need to provide to the franchisee it’s

Asset finance

Another type of secured funding or alternate financial solution is asset finance. By releasing equity, high-value assets like machinery or vehicles can be used as collateral. You can choose to purchase the asset back when the loan has been paid.

Invoice finance

Invoice finance

Invoice finance is an effective way to raise capital against your invoices for a charge. You can potentially borrow up to 100% of your outstanding invoices to avoid waiting for payment from your customers.

Revenue loan

Revenue loan

Lenders will take into account the fact that you previously had credit troubles but are currently making a significant amount of money. A rise in turnover will benefit the application because each proposal is evaluated on its own merits.

Choose Smart Funding Solutions

Due to the complexity of some lender requirements, you may find it beneficial and time-saving to use a credit broker such as Smart Funding Solutions. Even if you don’t qualify for any of the products already mentioned, we can point you in the right direction for business credit cards, business debtline and bank loans.

We tend to find that companies with adverse business accounts, seeking for business funds via the recovery loan scheme do struggle for an acceptance as a lot of funders nowadays use a portal by way of application. If your business credit score or personal credit score isn’t above the set level, it leads to an instant decline.

Requirements:

To initially qualify for a bad credit business loan, you need:

To qualify you must be able to provide at least 3 months’ bank statements. Additional information such as accounts, profit & loss and details of current borrowing will likely be requested.

Want to see your options

Want to see your options?

We can help if you are looking for a bad credit commercial loan – you can:

  1. Get indicative terms. Fill out our form and receive indicative terms back within 24 hours.
  2. Schedule a call here. We are on hand to talk through your plans and the challenges your business faces to ensure the best solution is found for you.
  3. We will search a lending market that includes over 250 lenders, all with a different niche.

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What security will be required?

In the event that the business is unable to pay back the loan, the business owner or director will personally be responsible for the repayment of the debt under the terms of a personal guarantee. There is a good chance the lender will request a PG from you. Using an item as security may be required depending on the sort of business loan you are seeking for.
Alternative funding solutions are becoming more and more sought after, meaning lenders are finding different ways to accept the security and ultimately find ways to approve funding.

How can I get approved for a business loan with bad credit?

You could follow these recommendations to increase your chances of having your application approved:

Want to find out more or apply?

Contact options:

Enquiry Form

Frequently Asked Questions

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Despite having a poor credit history, there are still numerous finance options available that can help you obtain the capital your business needs to expand. We have a range of alternative finance lenders that can provide bad credit business loans.

Yes, it may still be possible to get business loans despite having a poor credit history. We have numerous funding options available, including Merchant Cash Advance against a business asset or outstanding invoices.

Lenders may evaluate your business revenue and profit, reputation, testimonials, social media profiles, credit report, growth potential, and affordability to determine whether to grant your business a loan.

Types of security that lenders may consider include your merchant provider as a Merchant Cash Advance, a business asset such as property, vehicles or machinery, or outstanding invoices.

Yes, a merchant cash advance is available to companies accepting credit, debit cards and sell online. It is a quick and flexible solution that can be funded quickly. Lenders will typically borrow 1-2.5x of your monthly turnover.

The different types of bad credit business loans available to you include unsecured business loans, secured business loans, asset finance, and invoice finance.

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To qualify for a bad credit commercial loan, you must be a tenant or homeowner in the United Kingdom. You must also be able to provide at least 3 months’ bank statements and additional information such as accounts, profit & loss, and details of current borrowing.

We use the information provided by you to source the best funding options for you and your business using our panel of over 250 lenders. We’ll then present you with all the funding options available to you and give you time to decide which one you would like to proceed with.

In the event that your business is unable to pay back the loan, the business owner or director may personally be responsible for the repayment of the debt under the terms of a personal guarantee. There is a good chance the lender will request a PG from you. Using an item as security may be required depending on the sort of business loan you are seeking for.

Yes, various alternative funding solutions can be customised to meet the demands of your company even with a low credit rating or a damaged credit history.

Lenders may consider the volume and regularity of your judgments when assessing your business loan application, but don’t let a CCJ discourage you from applying as lenders in general have a better understanding of your firm thanks to their underwriting strategies.

You can increase your chances of having your application approved by considering a specialised lender, providing security or collateral, and ensuring that you demonstrate the ability to repay your loan. Due to the complexity of some lender requirements, it may also be beneficial to use a credit broker such as Smart Funding Solutions.

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