Best UK business loans with bad credit
Bad credit means different things to different lenders. CCJs, missed payments, defaults and post-IVA all face different acceptance bars. These lenders engage with applicants the high-street banks reject.
Founder & Managing Director, Muswell Rose, FundBiz
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind FundBiz. His background runs through commercial finance, mortgages and fintech, including as managing director of an invoice finance business. He oversees FundBiz's specialty finance comparison and the logic behind how businesses are matched to lenders.
Last reviewed: 12 June 2026
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Merchant cash advance + term loan · £3.5k to £500k · Same day
MCA against card flow ignores most credit-file issues.
Read full Capify review → -
Specialist post-decline term loans and MCA · £5k to £500k · Same day to 48 hours
Specialist underwriting for CCJ and recent missed payments.
Read full JPM Capital review → -
Specialist commercial finance for SMEs · £25k to £1m · 3 to 5 business days
Established post-decline specialist for moderate credit issues.
Read full Bolton Finance review → -
Specialist post-decline / fast cash · £5k to £500k · Same day
Highest-acceptance post-decline lender; rate at the top of the band.
Read full Bizcap review → -
Merchant cash advance · £10k to £500k · 24 to 48 hours
No-PG MCA available for some applicants with credit issues.
Read full 365 Business Finance review →
Side-by-side comparison
| Lender | Typical rate | Ticket | Decision | Best for |
|---|---|---|---|---|
| Capify | Factor rate 1.15 to 1.45 | £3.5k to £500k | Same day | MCA against card flow ignores most credit-file issues. |
| JPM Capital | Factor / per-month equivalent in higher band | £5k to £500k | Same day to 48 hours | Specialist underwriting for CCJ and recent missed payments. |
| Bolton Finance | From around 8% to 15% APR equivalent | £25k to £1m | 3 to 5 business days | Established post-decline specialist for moderate credit issues. |
| Bizcap | Factor 1.20 to 1.50 / per-month equivalent | £5k to £500k | Same day | Highest-acceptance post-decline lender; rate at the top of the band. |
| 365 Business Finance | Factor rate 1.10 to 1.40 | £10k to £500k | 24 to 48 hours | No-PG MCA available for some applicants with credit issues. |
What counts as bad credit in UK SMB lending?
CCJs (registered or satisfied), defaults, missed payments inside 12 months, IVA history, recent winding-up petitions, or a personal credit score below 600 on the director file. Each lender draws the line in a different place.
Which UK lenders accept CCJs on a business loan application?
Capify, JPM Capital, Bolton Finance and Bizcap underwrite CCJ applicants. Capify is the most accommodating on satisfied CCJs. JPM Capital and Bizcap engage with current unsatisfied CCJs case-by-case. 365 Business Finance considers MCA on a case-by-case basis.
What rate should I expect on a UK bad-credit business loan?
For MCA against card flow, factor rates of 1.30 to 1.50 (effective APR 40%+). For specialist post-decline term loans, 25% to 40% APR. Pricing reflects risk; the cleanest end is reserved for satisfied CCJs and stronger trading.
Are there fees specific to UK bad-credit business borrowing?
Sometimes. Specialist post-decline lenders may charge an arrangement fee of 3% to 6% of facility on top of the rate, where mainstream lenders charge 0% to 2%. Read the term sheet carefully; effective APR including fees is the only fair comparison.
Can I improve my chances after a UK business loan decline?
Yes. Three steps. First, satisfy any open CCJs where affordable; satisfied is materially better than unsatisfied. Second, build six months of clean bank statements before reapplying. Third, route through a broker panel that places you with lenders matched to your specific decline reason.
How we ranked these
We weight bad-credit acceptance (40%), decline-reason transparency (25%), decision speed (15%), eligibility breadth (10%), transparency (10%). Rankings reflect our published editorial methodology, not any commercial arrangement. See our /methodology/ for the full basis.
Methodology weights
Weights specific to "Best UK business loans with bad credit":
- Bad-credit acceptance40%
- Decline-reason transparency25%
- Decision speed15%
- Eligibility breadth10%
- Transparency10%
Read the full methodology for how we score and rank every lender on the FundBiz panel.
Also considered
- Acorn Commercial Finance for asset-backed cases
- Specialist commercial brokers for bespoke deals
Not for
Active winding-up petitions; undischarged bankruptcy or IVA; bankruptcy in last 12 months.
Check eligibility in two minutes
Tell us ticket size, trading history and sector. We match you against the FundBiz specialty panel and surface the lenders most likely to approve your file, including post-decline routes. Limited companies, LLPs and partnerships of 4+.
Open the eligibility checker →Reviewed by Oliver Mackman, Director, Best Business Loans Ltd. Last reviewed: 2026-06-12. Editorial by Best Business Loans Ltd (16833937).