Getting a business loan in the UK when you have bad credit

Getting a business loan in the UK when you have bad credit can be difficult but there are options available to you.

Bad credit business loans are available from specialist lenders, and they can offer a lifeline to businesses who may struggle to secure funding from mainstream lenders. The costs of these loans can be higher than traditional business loans, but they can still be a viable option for many businesses.‍

Why does my business have bad credit?

There are many reasons why your business might have bad credit. Perhaps you've missed some loan repayments in the past, or you have County Court Judgments (CCJs) against your company. It's also possible that your business is young and had not yet had time to build up a strong credit history.

How can I improve my chances of being accepted for a business loan?

It's also important to put together a strong business plan, as this will give lenders confidence in your ability to repay the loan. Finally, consider using a broker to help you find the right lender for your business.

A bad credit business loan can be difficult to obtain, but there are still options available.

Is it possible to get a business loan with bad credit?

Having bad credit can make it harder to get a business loan, but there are still financial companies that will lend to you. There are many factors that lenders will consider when assessing your application, and your credit score is one of them. Several specialist lenders cater to people with bad credit, and they may be more willing to lend to you than a mainstream lender.

What are the chances of being accepted for a business loan with bad credit?

Your chances of being accepted for a business loan with bad credit will depend on many factors, including your credit score, the amount you want to borrow, and the purpose of the loan. The best way to improve your chances of being accepted is to make sure you provide all the required information and documents when you apply and to shop around to compare different lenders.

Where can I find bad credit business loans?

Several specialist lenders cater to people with bad credit, and they may be more willing to lend to you than a mainstream lender. You can find these lenders by searching the FundOnion website online or speaking to one of our brokers.

What are the costs of bad credit business loans?

The costs of bad credit business loans can vary depending on the lender, but you can expect to pay higher interest than you would if you had good credit. You should also be aware that some lenders may require collateral, such as your home or another asset, to secure the loan.

Can I get a business loan with no credit check?

No, all lenders will carry out a credit check when you apply for a loan. In most cases, lenders will only initially need to carry out a "soft check" which does not leave a record on your credit file at the outset of the application. In order to finalise the loan, however, they will need to carry out a final "hard check" on your credit file. Some lenders cater to people with bad credit, and they may be more willing to lend to you than a mainstream lender.

What is the maximum amount I can borrow?

The maximum amount you can borrow will depend on the lender and the purpose of the loan.

How much longer could it take to secure the finance with bad credit?

It can take longer to secure finance with bad credit, as lenders will need to carry out additional checks to asses your application. However, there are specialist lenders who cater to people with bad credit, and they may be more willing to lend to you than a mainstream lender.

Is it worth using a broker?

Yes, using a broker such as FundOnion can help you find the right lender for your business. A broker will have access to a wide range of lenders and products, and they will be able to help you find the most suitable option for your needs.

What security would I need to secure a bad credit business loan?

Some lenders may require collateral, such as your home or another asset, to secure the loan. This is because loans for people with bad credit are considered to be higher risk.

How do I compare bad credit business loans?

When comparing bad credit business loans, you should consider the interest rate, fees, and repayment terms. You should also make sure you understand the Business Loan Agreement before signing it.

How do I improve my chances of getting a bad credit loan?

There are some things you can do to improve your chances of being accepted for a business loan, even if you have bad credit. Firstly, make sure that you understand your credit score and what factors have led it to being low. You can then work on addressing these issues, which will show lenders that you're serious about improving your creditworthiness.

How to improve your business credit score

There are a few things you can do to improve your credit score, which will in turn improve your chances of being approved for a bad credit business loan. One thing you can do is to make sure you keep up with all your debt repayments, whether they are personal or business-related. If you have missed or late payments, try to catch up as soon as possible. You should also try to avoid taking out any new loans or lines of credit, as this could further damage your credit score. If you need to borrow money, consider a Bad Credit Business Loan from a reputable lender. By following these tips and maintaining a good payment history, you can improve your chances of being approved for funding.

Conclusion

Bad credit business loans are available from specialist lenders, and they can offer a lifeline to businesses who may struggle to secure funding from mainstream lenders. The cost of these loans can be higher than traditional business loans, but they can still be a viable option for many businesses. If you are considering a Bad Credit Business Loan, make sure you compare the interest rates, fees, and repayment terms of different lenders before choosing one. You should also make sure you understand the Bad Credit Business Loan Agreement before signing it. By following these tips, you can improve your chances of being approved for funding.