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Business loans
CCJ: what it means for business borrowing
CCJ meaning: a County Court Judgment is a court order to repay a debt. How long it stays on your file, paid vs unpaid, and how it affects business borrowing.
A CCJ, or County Court Judgment, is a court order in England and Wales that says a person or business must repay money it owes. A creditor applies for one when a debt stays unpaid after reminders, or when a payment arrangement has broken down. Scotland and Northern Ireland have their own equivalent processes.
How a CCJ is recorded
Once a judgment is made it is usually entered on the Register of Judgments, Orders and Fines, kept by the Registry Trust (Registry Trust). Credit reference agencies take their data from that register, so a lender checking a business or a director will see it.
| What happens to the debt | What happens to the CCJ |
|---|---|
| Paid in full within one month of the judgment | You can ask the court to remove it, so it should not appear on your credit file |
| Paid after one month | Stays on the register for six years from the judgment date, marked as satisfied |
| Not paid | Stays for six years, and the creditor can take further enforcement action |
GOV.UK explains the process in its guide to county court judgments for debts.
An example
A joinery company disputes a supplier's £4,800 invoice, misses the court paperwork and a default judgment is entered against it. The director pays three weeks later and asks the court to remove the entry, so the CCJ should not show on the company's file. Had it been paid after the month, it would show as satisfied until six years after the judgment date.
How a CCJ affects borrowing
A CCJ does not stop a business borrowing, but it narrows the choice and usually raises the cost. Lenders look at whether it is satisfied, how old it is, the amount, the reason and how the business has traded since. Many high street banks decline recent unsatisfied judgments, while specialist lenders look at the whole picture. Secured loans, asset finance and invoice finance are often more open than unsecured lending, because the lender has an asset or your customers' invoices to rely on.
If you have a CCJ and need funding, see our bad credit business loans page and our guide to getting a business loan with a CCJ. We search the market for lenders whose appetite fits your history, so you do not apply blind. Any broker fee depends on the lender, with nothing to pay upfront.
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Sources
This guide is general information, not financial advice. Lenders set their own criteria, rates and terms, and all finance is subject to status.
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FAQs
Common questions
What does CCJ stand for?
CCJ stands for County Court Judgment, a court order in England and Wales to repay a debt. It is recorded on the Register of Judgments, Orders and Fines for six years unless it is paid in full within one month and removed.
Can I get a business loan with a CCJ?
Often, yes, from specialist lenders, especially if the CCJ is satisfied, a few years old and the business trades well now. Expect fewer options and a higher rate than with a clean record. Our bad credit business loans page explains the options.
Does a CCJ against my company affect me personally?
A judgment against a limited company is recorded against the company, not the director. A lender will still look at the directors' personal credit too, and a CCJ against you personally can affect a business application, especially where you give a personal guarantee.
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