FINANCE OPTIONS
Understanding Bad Credit Business Loans
A Bad Credit Business Loan is a type of loan designed for businesses that have a low credit score or a history of financial struggles. It helps these businesses get the money they need to grow or manage expenses despite their credit challenges. If you're facing credit issues but need funding, these loans could be a helpful option to explore.
Apply for business financing up to £500,000
- Quick and easy application process
- Loan disbursed within 24 hours
- No additional charges for early repayment
We Like To Keep Things Simple
Match with
150+
Lenders
Loans from
£1000
to
£500K
to
£500K
zero hidden fees
What are the Benefits of a Bad Credit Business loan?
Bad Credit Business loans are designed for entrepreneurs and small business owners who may have a poor credit history. These loans provide necessary financial support to keep operations running, invest in growth, and cover unexpected expenses, making it easier for businesses to improve their credit rating over time and achieve stability.
Access to financing
Boosts cash flow
Flexible repayment options
Different Types of Bad Credit Business loans
Merchant Cash Advance
A lump sum provided in exchange for a percentage of future sales, ideal for businesses with poor credit.
Invoice Financing
A loan based on outstanding invoices, allowing businesses with bad credit to access funds quickly.
Short-Term Business Loan
A small loan repaid over a short period, often with higher interest, suitable for businesses with bad credit.
What is Bad Credit Business loan
Types of Bad Credit Business Loans
There are several options for businesses with poor credit, such as merchant cash advances, invoice financing, short-term business loans, equipment financing, and term loans. Each is designed to help those who may not qualify for traditional loans from banks.
Higher Costs Due to Risk
Since these loans are riskier for lenders, they usually come with higher interest rates and fees. This helps lenders offset the risk of lending to businesses that have a history of poor credit or low credit scores.
Flexible Approval Criteria
Unlike traditional banks, alternative lenders often use more flexible approval methods, like looking at cash flow, outstanding invoices, or available collateral, rather than relying solely on credit scores. This makes it easier for businesses with bad credit to qualify for financing.
FAQ’S
Can I get a business loan with bad credit in the UK?
How can a bad credit business loan improve my credit?
Are there alternatives to bad credit business loans?
What do lenders look for when approving bad credit business loans?