How to get a business loan with a CCJ

You can get a business loan with a County Court Judgment (CCJ), but your options are narrower and borrowing usually costs more. Specialist lenders will consider applications if the business is trading well, repayments are affordable, and you can explain the CCJ and show it has been dealt with. Secured loans, asset finance and invoice finance are often more accessible than unsecured lending, because the lender has security or relies on your customers' credit.

This guide is for directors, partners and sole traders with a judgment against them or their business who need to borrow. Smart Funding Solutions is a broker, not a lender: we search a panel of 300+ lenders for those whose appetite for adverse credit fits your case, rather than you applying blind.

01What is a CCJ?

A County Court Judgment is a court order in England and Wales requiring you to repay a debt. A creditor applies for one when a debt remains unpaid after reminders or when an agreed arrangement has broken down. Scotland and Northern Ireland have their own equivalent processes.

Once a judgment is made, it is usually recorded on the Register of Judgments, Orders and Fines, maintained by the Registry Trust. Credit reference agencies use this register, so lenders and suppliers can see it when they check your business or personal credit file. GOV.UK has a clear guide to county court judgments for debts.

02How long does a CCJ stay on your record?

• Paid in full within one month of the judgment date: you can ask the court to remove it from the register, so it should not appear on your credit file.
• Paid after one month: it stays on the register for six years from the judgment date, but is marked as "satisfied", which lenders view more favourably than an unpaid judgment.
• Not paid: it stays for six years, and the creditor can take further enforcement action.

If a judgment is set aside by the court, for example because it was issued in error, it should be removed from the register.

03How to deal with a CCJ

1. Check the details. Make sure the judgment is accurate and relates to your business or to you.
2. Pay in full within a month if you can. This gives the best outcome for your credit file.
3. If you cannot pay in full, arrange instalments. Contact the creditor, or apply to the court to vary the payment terms.
4. Apply to set it aside if you have grounds, such as not receiving the claim or having a valid defence. Act promptly and consider legal advice.
5. Get a certificate of satisfaction once paid. You can apply to the court for one, which updates the register.
6. Check your credit files afterwards to make sure the record has been updated correctly.

Free debt advice is available from charities such as Business Debtline if you are struggling with business debts.

If a judgment is set aside by the court, for example because it was issued in error, it should be removed from the register.

04Does a CCJ stop you getting a business loan?

Not automatically. A CCJ tells lenders that a debt was not paid when due, so it raises questions about risk. Many high-street banks will decline, but some specialist lenders look at the whole picture. They typically consider:

• Whether the CCJ is satisfied: a paid judgment is much less concerning than an unpaid one
• How old it is: an older CCJ followed by a clean record carries less weight
• The amount and whether it was a one-off
• The reason: a disputed invoice or a customer's insolvency is viewed differently from general non-payment
• Current trading: bank statements, profitability and affordability
• Other credit history: missed payments, defaults or several CCJs increase concern

An honest, brief explanation of what happened and what has changed helps your case. For a broader view, see our guide to bad credit business loans.

If a lender has already turned you down, our guide on what to do after a business loan is declined sets out the steps to take before you apply again.

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05Funding options with a CCJ

Secured business loans

Offering property or other assets as security reduces the lender's risk, which can make approval more likely. The amount depends on the equity available and the lender's maximum loan-to-value for applicants with adverse credit, which is usually lower than for clean-credit borrowers. Rates are typically higher, and the asset is at risk if you cannot repay. See secured business loans.

Unsecured business loans

Harder to obtain with a CCJ, but some specialist lenders will consider it, especially if it is satisfied and trading is strong. Expect smaller amounts, shorter terms, higher rates and a personal guarantee.

Asset finance

Because the equipment or vehicle secures the agreement, asset finance is often more accessible. Lenders assess the asset's value and resale market alongside your credit. A deposit may be required.

Invoice finance

Invoice finance relies heavily on the creditworthiness of your customers, so a CCJ against your business can matter less than with other products. Selective invoice finance lets you fund individual invoices.

Merchant cash advance

Assessed mainly on card-takings history, a merchant cash advance can be an option for card-heavy businesses with credit problems. It is usually more expensive than a term loan.

Where the money is for equipment or vehicles, our guide to bad credit asset finance, including with a CCJ explains how lenders weigh the asset against your credit history.

06How to improve your chances

07Business loans with a CCJ: which options are most open?

Business loans with a CCJ are usually easiest to arrange where the lender has something besides your credit file to rely on: an asset, your customers' invoices or your card takings. This table brings together how each option tends to treat a judgment.

Option	What the lender relies on	How a CCJ tends to be viewed	What to expect
Secured business loan	Equity in property or other assets	Can be considered, especially once satisfied	A lower maximum loan-to-value than for clean credit
Asset finance	The equipment or vehicle being funded	Often more accessible	A deposit may be required
Invoice finance	Your customers' creditworthiness	Can matter less than with other products	Creditworthy business customers on clear terms
Merchant cash advance	Your card takings	Assessed mainly on takings history	Usually more expensive than a term loan
Unsecured business loan	Trading performance and credit history	The hardest route, with a narrower choice	Smaller amounts, shorter terms and a personal guarantee

Check the register before a lender does

Judgments in England and Wales are recorded on the Register of Judgments, Orders and Fines. TrustOnline, run by Registry Trust, lets you search that register for yourself or any business, and Registry Trust also provides access to the registers for Scotland and Northern Ireland. A fee applies. Searching both the business and each director before you apply lets you confirm a paid judgment is shown as satisfied, spot any you did not know about, and prepare your explanation. Our guide to what goes into a company credit report explains what else lenders see.

How much can you borrow with a CCJ?

The amount is set mainly by affordability, shown in your bank statements and accounts, and by any security, rather than by the CCJ alone. A recent or unpaid judgment usually reduces the amount and the choice of lenders, while an older, satisfied one followed by clean payments narrows the gap with a clean-credit application.

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