September 30, 2025
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Top 10 Bad Credit Business Loan lenders in the UK

Discover the top 10 UK business loan lenders that cater to bad credit. Find reliable options to secure funding and grow your business despite credit challenges.
Jesse Spence
Finance content writer / Market researcher

For UK franchise buyers and operators, this guide compares loan ranges, APRs, and terms across leading providers, with a focus on eligibility and fit. prices accurate as of 2025-09-30.

RankProviderSummaryLoan range; APR; Term
1Funding AgentFunding 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
2Funding CircleFunding 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
3FleximizeFleximize 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
4IwocaIwoca 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
5118 118 Money118 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
6CapifyCapify 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
7SME LoansSME 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
8365 Finance365 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
9CapitaliseCapitalise 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
10Evan Gate Financial ServicesEvan 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: 0 months
  • Max Duration: 0 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: 0 months
  • Max Duration: 0 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: 0 months
  • Max Duration: 0 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: 0 months
  • Max Duration: 0 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: 0 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: 0%
  • Max APR: 0%
  • Min Duration: 0 months
  • Max Duration: 0 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: 0%
  • Max APR: 0%
  • Min Duration: 0 months
  • Max Duration: 0 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: £0
  • Max Amount: £0
  • Min APR: 0%
  • Max APR: 0%
  • Min Duration: 0 months
  • Max Duration: 0 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: £0
  • Max Amount: £0
  • Min APR: 0%
  • Max APR: 0%
  • Min Duration: 0 months
  • Max Duration: 0 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.

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.

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