Construction Business Loans with Bad Credit or a CCJ — Your Options Explained

Short answer: Yes — it is often possible to obtain construction finance even with poor credit or a previous CCJ, but options are more limited, costs are typically higher, and lenders will look much more closely at security, trading history and your exit plan. UK Business Loans helps match construction businesses to specialist lenders and brokers who consider imperfect credit cases. Get Quote Now — Free Eligibility Check

Table of Contents

• Quick answer — can you get construction finance with bad credit or a CCJ?
• How a CCJ or bad credit affects construction finance
• Types of construction finance available with imperfect credit
• What lenders look for
• Ways to improve approval chances
• Typical costs, timescales and expectations
• How UK Business Loans helps
• Step-by-step checklist to apply
• Frequently asked questions
• Next steps & related resources

Quick answer — can you get construction finance with bad credit or a CCJ?

Short answer: yes, sometimes. The reality is nuanced:

• Specialist lenders and brokers will consider applicants with adverse credit or prior CCJs, particularly when strong security or an experienced development team is in place.
• Expect higher interest rates, lower loan-to-value (LTV)/loan-to-cost (LTC) ratios, larger fees and stricter conditions (personal guarantees, staged draws).
• Key factors that change outcomes are: how long ago the CCJ was registered, whether it’s been satisfied, the scale of the project, the value of available security, and your sector experience.

Start your free enquiry — Free Eligibility Check

How a CCJ or bad credit affects construction finance

A County Court Judgment (CCJ) will remain on a UK credit file for six years unless set aside. Lenders treating construction finance weigh both the credit file and the commercial strength of the project.

Impacts to expect:

• Risk perception: A CCJ or repeated late payments raises perceived borrower risk — lenders often compensate with higher margins or additional security.
• Personal vs corporate: Many construction businesses are limited companies. Lenders will check both company and director credit files and may require director guarantees if personal credit is weak.
• Project type matters: Short-term bridging for cashflow is judged differently to large-scale development finance. Development lenders place high value on experience and exit plans.

Example scenarios:

• Small contractor with a satisfied CCJ from three years ago — may secure asset finance or invoice finance more easily than large development funding.
• SME developer with an unsatisfied CCJ and weak balance sheet — likely to succeed only with substantial property security and an experienced co-developer or sponsor.

Types of construction finance likely available if you have bad credit/CCJ

Bridging loans

Short-term, secured loans used to bridge cashflow gaps or buy property quickly. Specialist bridging lenders often consider imperfect credit when security (residential or commercial property) is strong. Typical features: loan sizes from £50k+, LTV often capped (50–70%), terms 1–12 months, rates from higher band markets with arrangement & exit fees.

Development finance

For plots, conversions and new builds. Lenders focus on experience, gross development value (GDV), cost schedules and exit strategy. For borrowers with adverse credit, expect lower LTC (often 60–70% of costs), higher margins, and staged drawdown linked to milestones.

Asset and equipment finance

Fund machinery, plant or vehicles. These are asset-backed so credit problems are less detrimental. Loan sizes vary; finance is repaid over the asset life. Good option for contractors needing kit without large capital outlay.

Invoice finance

Unlocks cash tied in unpaid invoices. Underwriting focuses on your customers’ creditworthiness rather than yours — a helpful route for otherwise credit-impaired firms with strong clients.

Secured business loans

Longer-term loans secured on commercial property or directors’ personal property. Lenders may accept previous CCJs if security value, cashflow and exit plans are persuasive.

Specialist panels & peer-to-peer

Some specialist lenders and P2P platforms price for higher risk and consider complex cases — brokers are often best placed to find them.

For more on tailored options for builders and developers, see our page on construction business loans.

What lenders look for when you have bad credit or a CCJ

When reviewing an application with credit issues, underwriting focuses on mitigating risk. Common assessment points:

• Time since the CCJ and whether it has been satisfied or set aside — evidence of payment is important.
• Trading history, management accounts and demonstrable cashflow.
• Project experience and track record (especially for development finance).
• Strength and value of security (property valuations, plant/equipment).
• Clear exit strategy: sale, refinance or remortgage.
• Personal guarantees and director involvement.

Documents typically requested: latest accounts, VAT returns, bank statements, proof a CCJ is satisfied (if applicable), a business plan, project cost schedule and independent valuations.

Ways to improve approval chances & reduce costs

• Gather strong documentation: up-to-date accounts, cashflow forecasts, a professional cost plan and valuations.
• Show CCJ evidence: a satisfaction certificate, payment plan or court paperwork demonstrating resolution.
• Offer stronger security or reduce the requested LTV/LTC.
• Bring an experienced project partner or co-investor to the table.
• Use a specialist broker who knows lenders willing to consider adverse-credit cases.
• Be fully transparent — undeclared issues will kill a deal.

Practical tip: if a CCJ has been paid, get written confirmation and allow credit reference agencies time to update records before applying.

Typical costs, timescales and realistic expectations

Costs vary widely by product and risk profile. Indicative ranges:

• Bridging: interest from 0.6%–1.5% per month (or higher for high-risk cases), arrangement fees often 1–3% and exit fees possible.
• Development: lender margin + fees; expect higher margin for impaired credit and reduced LTC.
• Asset finance: usually lower rates than unsecured or bridging because the asset is security.

Timescales:

• Bridging lenders can decision and fund in days for straightforward security.
• Development finance often takes several weeks — expect thorough due diligence.
• Asset and invoice finance can be arranged in days–weeks depending on paperwork.

Remember: advertised rates are indicative. The right broker match will give you realistic quotes for your specific situation.

How UK Business Loans helps

UK Business Loans connects construction businesses to specialist lenders and brokers who understand imperfect-credit scenarios. Our service is free to use and quick — we take a few details, check eligibility and connect you to partners most likely to provide a workable quote for loans from around £10,000 upwards.

We don’t lend or provide regulated advice — we introduce you to lenders/brokers. Submitting an enquiry will not affect your credit score. Get Started — Free Eligibility Check

Step-by-step checklist to apply (quick action plan)

• Prepare management accounts and recent bank statements (3–12 months).
• Obtain proof a CCJ is satisfied or documentation if it’s disputed/set aside.
• Compile a clear project plan, cost schedule and exit strategy (sales contract or refinance plan).
• Get property/asset valuations where security is offered.
• Consider a co-signer, sponsor or experienced partner to strengthen the case.
• Complete a short enquiry so we can match you to the right lenders/brokers: Get Quote Now.

Frequently asked questions

Will submitting an enquiry affect my credit score?

No. Submitting an enquiry to UK Business Loans is a soft introduction and will not affect your credit file. Lenders or brokers may perform credit checks later if you choose to proceed with an application.

Can I get development finance if a director has a CCJ?

Possibly. Some specialist development lenders will consider cases where a director has a CCJ if the project is strong, security is robust and the CCJ is satisfied or older. Director guarantees and lower LTCs are commonly required.

How long after a CCJ can I apply?

There is no set waiting period. Lenders look at the whole picture: how long ago the CCJ was registered, whether it’s paid, current trading performance and project risk. In some cases, lenders consider applicants a few years after a satisfied CCJ if other factors are strong.

Are rates much higher if I have bad credit?

Generally yes — lenders price for additional perceived risk. Expect tighter LTV/LTC limits, higher margins/interest and additional fees. Proper preparation and a good broker match can reduce costs.

What if the CCJ is not satisfied?

An unsatisfied CCJ makes approval harder but not impossible. Lenders will want to understand why it’s unsatisfied and see a plan to resolve it. Some lenders will decline until it’s satisfied; others may still consider the case with significant security.

Do I need planning permission to apply for development loans?

Not always for initial eligibility — but lenders will require clarity on planning status before advance of significant sums. Having planning, detailed build costs and realistic sales values helps approvals.

Free Eligibility Check — Start Now

Next steps & closing summary

Many construction businesses secure finance despite past credit problems by presenting strong projects, realistic exit plans and suitable security. The fastest way to understand your options is to get a tailored eligibility check — it’s free, non-binding and will not affect your credit score. Complete a brief enquiry and we’ll match you to lenders and brokers who specialise in construction cases with imperfect credit.

Get Matched With Lenders — Free, No-Obligation

Related resources & authoritative links

• FCA guidance on financial promotions
• Citizens Advice on debt and CCJs
• GOV.UK — County Court Judgments (CCJs)
• Commercial finance | Bridging loans | Asset finance | How it works

UK Business Loans is an introducer — we do not lend or provide regulated financial advice. We connect businesses to selected lenders and brokers. Submitting an enquiry will not affect your credit score. We may share your information with our lending partners; see our Privacy Policy.

1. Can I get construction business loans if I have bad credit or a CCJ?
Yes — specialist lenders and brokers often consider construction finance for borrowers with adverse credit or CCJs, but expect higher costs, lower LTV/LTC and stronger security or experience requirements.

2. Will submitting an enquiry to UK Business Loans affect my credit score?
No — submitting a free enquiry is a soft introduction and will not affect your credit file; lenders or brokers may carry out credit checks only if you proceed with an application.

3. What types of construction finance are available to businesses with imperfect credit?
Options commonly include bridging loans, development finance (with lower LTC), asset/equipment finance, invoice finance, secured business loans and some specialist or P2P lenders prepared to consider higher-risk cases.

4. How long after a CCJ can I apply for construction finance?
There’s no fixed waiting period — CCJs remain on file for six years, but lenders assess time since the CCJ, whether it’s satisfied, current trading performance and project strength on a case-by-case basis.

5. What documents will lenders request if I have a CCJ when applying for construction funding?
Lenders typically ask for management accounts, recent bank statements, proof that any CCJ is satisfied (or court paperwork), project cost schedules, planning documents and independent valuations of offered security.

6. Will interest rates and fees be much higher if I have bad credit?
Generally yes — lenders price for added risk so expect higher interest/margins, arrangement and exit fees, plus stricter LTV/LTC limits and additional guarantees.

7. Can a director with a CCJ still obtain development finance?
Possibly — many specialist development lenders will consider directors with older or satisfied CCJs if the project, security and exit strategy are strong, often requiring director guarantees and reduced LTC.

8. How quickly can construction finance be arranged if I have adverse credit?
Timescales vary: bridging, asset or invoice finance can sometimes complete in days to weeks, while development and complex cases usually take several weeks for full due diligence and drawdown.

9. How does UK Business Loans help businesses with bad credit find suitable lenders?
We act as a free introducer, matching your enquiry to specialist lenders and FCA-regulated brokers experienced in imperfect-credit construction cases — we do not lend or provide regulated financial advice.

10. What practical steps improve my chances of approval with a CCJ or poor credit?
Strengthen your application by obtaining CCJ satisfaction evidence, preparing up-to-date accounts and cost plans, offering tangible security, lowering requested LTV/LTC and using a specialist broker to find sympathetic lenders.