Top 10 Bad Credit Business Loan lenders in the UK
.png)
.png)
This guide is for UK business owners who need funding but may not meet the strict credit requirements of high street banks. It is especially relevant for SMEs, limited companies, sole traders, and directors with past credit issues, including missed payments, CCJs, defaults, short trading history, or uneven cash flow.
The page compares bad credit business loan lenders that may consider applications based on wider business performance, not just a perfect credit score. It is aimed at businesses looking for working capital, stock purchases, equipment, cash flow support, tax bills, emergency funding, or growth finance where traditional lenders may have already declined the application.
Getting rejected for a business loan because of bad credit is frustrating, but it does not mean funding is impossible. Many UK lenders now look beyond your credit score and focus on cash flow, trading history, and overall business performance. Bad credit business loan lenders specialise in helping businesses that traditional banks often decline. These lenders understand that a low credit score does not always reflect the health or potential of a business, which means funding is still achievable. In this guide, we list the top bad credit business loan lenders in the UK, explain how they work, what they look for, and how to improve your chances of approval so you can secure funding faster.
Most UK bad credit business loan lenders will consider applications from limited companies, sole traders, and partnerships that have been trading for at least 4–6 months and generate a minimum monthly turnover of around £4,000–£10,000. Acceptable credit issues typically include CCJs, defaults, missed payments, previous insolvencies, and short or thin credit files, provided the business shows consistent cash flow. Loan amounts across our top 10 range from £1,000 with 118 118 Money up to £3,000,000 with Capify, with APRs starting from 6% at SME Loans and rising to 83.1% at 118 118 Money depending on risk profile, security, and trading performance.
| Rank | Provider | Summary | Loan range; APR; Term |
|---|---|---|---|
| 1 | Funding Agent | Funding Agent specializes in providing tailored financial solutions for businesses in the UK, ensuring that even those with poor credit have access to vital funding. | £1,000–£500,000; 7.5%–30% APR; 0–0 months |
| 2 | Funding Circle | Funding Circle is a leading lending platform in the UK offering business loans to small businesses with a focus on providing fast, affordable loans. | £10,000–£500,000; 6.9%–12% APR; 0–0 months |
| 3 | Fleximize | Fleximize offers award-winning, flexible funding solutions to SMEs across the UK, with personalized loan options. | £5,000–£500,000; 8.9%–25% APR; 0–0 months |
| 4 | Iwoca | Iwoca provides quick and flexible business loans to small businesses in diverse industries, ensuring fast access to capital. | £1,000–£1,000,000; 0%–0% APR; 0–0 months |
| 5 | 118 118 Money | 118 118 Money offers flexible business loans tailored to meet the needs of businesses with challenging credit profiles in the UK. | £1,000–£5,000; 49.9%–83.1% APR; 0–0 months |
| 6 | Capify | Capify offers tailor-made financing solutions with a focus on SME business loans, providing personalized and unsecured loan options. | £5,000–£3,000,000; 0%–0% APR; 0–0 months |
| 7 | SME Loans | SME Loans focuses on providing business loans to startups and SMEs in the UK, including options for companies with poor credit history. | £1,000–£500,000; 6%–30% APR; 0–0 months |
| 8 | 365 Finance | 365 Finance provides revenue-based financing solutions, particularly for businesses with frequent customer card transactions, even those with credit challenges. | £5,000–£500,000; 0%–0% APR; 0–0 months |
| 9 | Capitalise | Capitalise connects businesses with lenders, offering a variety of financial products designed to support businesses with bad credit. | £0–£0; 0%–0% APR; 0–0 months |
| 10 | Evan Gate Financial Services | Evan Gate Financial Services provides financing solutions for businesses with bad credit, connecting them to a network of over 50 lenders in the UK. | £0–£0; 0%–0% APR; 0–0 months |
1. Funding Agent
Funding Agent offers tailored funding options focused on small UK businesses needing flexible, unsecured, or secured credit. Its solutions are suitable for franchise buyers, startups, and established firms seeking fast access. The provider emphasises quick approval and personalised service to match varied business needs.
Loan Details
- Min Amount: £1,000
- Max Amount: £500,000
- Min APR: 7.5%
- Max APR: 30%
- Min Duration: 3 months
- Max Duration: 60 months
Services & Industries
- Finance Types: Unsecured Loans, Secured Loans, Merchant Cash Advance
- Industries: All industries
Pros
- Tailored financial solutions
- Fast approval process
- Flexible terms
Cons
- Higher interest rates for bad credit
Sources: https://www.fundingagent.co.uk
2. Funding Circle
Funding Circle specialises in online business financing. It offers fast, accessible loans for small and medium enterprises. The platform caters to those seeking quick, transparent options with competitive rates and flexible repayment plans.
Loan Details
- Min Amount: £10,000
- Max Amount: £500,000
- Min APR: 6.9%
- Max APR: 12%
- Min Duration: 6 months
- Max Duration: 60 months
Services & Industries
- Finance Types: Business Loans
- Industries: Various industries
Pros
- Competitive interest rates
- No early repayment fees
Cons
- Requires a good business plan
Sources: https://www.fundingcircle.co.uk/,https://www.nimblefins.co.uk/business-loans/funding-circle-review
3. Fleximize
Fleximize provides flexible business finance options tailored to UK SMEs. It supports startups and established firms with fast, scalable funding, often with options for flexible borrowing and repaid on revenue. Suitable for businesses seeking adaptability and quick turnaround.
Loan Details
- Min Amount: £5,000
- Max Amount: £500,000
- Min APR: 8.9%
- Max APR: 25%
- Min Duration: 6 months
- Max Duration: 75 months
Services & Industries
- Finance Types: Business Loans, Short Term Loans
- Industries: SMEs
Pros
- Personalized loan solutions
- Flexible terms
Cons
- Higher APRs for riskier borrowers
Sources: https://www.fleximize.co.uk/,https://www.capalona.co.uk/our-lenders/fleximize/
4. Iwoca
Iwoca offers fast, flexible business loans targeting small and medium-sized UK businesses. The solutions support quick cash flow needs, with options for unsecured and security-backed loans. Suitable for those seeking rapid funding with straightforward criteria.
Loan Details
- Min Amount: £1,000
- Max Amount: £1,000,000
- Min APR: 0%
- Max APR: 0%
- Min Duration: 3 months
- Max Duration: 24 months
Services & Industries
- Finance Types: Business Loans
- Industries: Retail, Hospitality, Services
Pros
- Fast decision times
- Minimal paperwork
Cons
- Higher costs for poor credit
Sources: https://www.iwoca.co.uk/,https://www.theglobalcity.uk/resources/case-studies/iwoca
5. 118 118 Money
118 118 Money specialises in providing flexible loans to UK businesses with challenging credit. Its loans support working capital, expansion, and refinancing needs, often with quick turnaround. Suitable for companies seeking adaptable finance solutions.
Loan Details
- Min Amount: £1,000
- Max Amount: £5,000
- Min APR: 49.9%
- Max APR: 83.1%
- Min Duration: 0 months
- Max Duration: 60 months
Services & Industries
- Finance Types: Business Loans
- Industries: Various
Pros
- No early repayment fees
- Wide acceptance of applicants
Cons
- High APR rates
Sources: https://www.myfinancialbroker.co.uk/lender-contact-info/credit-cards/118-118-money-credit-cards/,https://www.creditspring.co.uk/compare/118-118-money
6. Capify
Capify provides flexible financing solutions, specialising in merchant cash advances and unsecured loans for UK SMEs. Its offerings are suitable for businesses seeking quick funding with minimal collateral and tailored repayment options. Ideal for those needing short-term finance or bridging solutions.
Loan Details
- Min Amount: £5,000
- Max Amount: £3,000,000
- Min APR: 9%
- Max APR: 11%
- Min Duration: 3 months
- Max Duration: 24 months
Services & Industries
- Finance Types: Business Loans
- Industries: SMEs
Pros
- Quick funding
- Personalized offers
Cons
- Short loan terms
Sources: https://www.capify.co.uk/,https://www.capify.co.uk/finance/short-term-small-business-loans/
7. SME Loans
SME Loans provides loans for startups and established UK SMEs. Its products support working capital, growth, and refinancing. Suitable for firms with varied credit histories seeking flexible, fast access to funding.
Loan Details
- Min Amount: £1,000
- Max Amount: £500,000
- Min APR: 6%
- Max APR: 30%
- Min Duration: 0 months
- Max Duration: 0 months
Services & Industries
- Finance Types: Business Loans
- Industries: Startups, SMEs
Pros
- Accessible to those with poor credit
- Flexible repayment
Cons
- May have high APR
Sources: https://www.smeloans.co.uk/,https://fleximize.com/articles/005214/bad-credit-business-loans
8. 365 Finance
365 Finance offers revenue-based finance supporting cash flow for businesses with frequent card transactions. It provides quick access with flexible repayments tied to sales, suitable for retail, hospitality, and similar sectors needing rapid, scalable funding.
Loan Details
- Min Amount: £5,000
- Max Amount: £500,000
- Min APR: 7%
- Max APR: 12%
- Min Duration: 3 months
- Max Duration: 36 months
Services & Industries
- Finance Types: Revenue-based Finance
- Industries: Hospitality, Retail
Pros
- Repayment through sales
- No fixed monthly payments
Cons
- Repayment depends on business income
Sources: https://www.365finance.co.uk/,https://fundingxchange.co.uk/lenders/365-finance/
9. Capitalise
Capitalise offers a marketplace connecting businesses with lenders specialising in bad credit. It features a wide array of financial products, including unsecured, secured, and credit line options. Suitable for firms seeking flexible, quick solutions tailored to complex credit situations.
Loan Details
- Min Amount: £1000
- Max Amount: £500000
- Min APR: 7%
- Max APR: 12%
- Min Duration: 0 months
- Max Duration: 60 months
Services & Industries
- Finance Types: Business Loans, Credit Lines
- Industries: Various
Pros
- Wide range of lender choices
- Tailored financial solutions
Cons
- Varied APRs depending on lender
Sources: https://capitalise.com/gb/bad-credit-business-loans
10. Evan Gate Financial Services
Evan Gate Financial Services provides tailored financing options for businesses with bad credit. It connects firms to a network of over 50 UK lenders, supporting quick access to capital and flexible repayment plans suited for varied credit risk profiles.
Loan Details
- Min Amount: £5000
- Max Amount: £1 ,000,000
- Min APR: 7%
- Max APR: 12%
- Min Duration: 12 months
- Max Duration: 60 months
Services & Industries
- Finance Types: Business Loans, Merchant Cash Advance
- Industries: Various
Pros
- Wide lender network
- Flexible financing options
Cons
- Service fees may apply
Sources: https://www.evangatefs.com/services/business-bad-credit/
How to choose
When selecting a provider for bad credit business loans in the UK, carefully compare fees such as arrangement charges, valuation, legal costs, and early repayment penalties. Consider the length of the repayment term in relation to your asset's expected life and your cash flow seasonality. Verify eligibility criteria and document requirements before applying. Assess the flexibility of repayment options and the total cost of credit, including the interest rate and any applicable fees. Shortlisting providers based on your specific needs and their service model helps ensure the best fit for your business.
.png)
Conclusion
Matching the right provider depends on your purpose. Banks offer savings and structured products for good credit. Brokers and specialist lenders cater to complex credit situations and quick funding. Always compare the total cost of credit, including rates and fees. Checking early repayment terms and conditions is essential. Shortlist providers based on eligibility, service levels, and your strategic needs. Funding Agent is a strong choice for SMEs that want quick comparisons across multiple options. Other providers suit larger amounts, asset-backed needs, or sector specialisms. Always confirm current costs and terms with the lender; pricing may change.
