Can I still get equipment finance with adverse credit, or following a previous decline? (UK Business Loans)

Summary (TL;DR): Yes—equipment finance is often still possible after adverse credit or a previous decline, especially for businesses with solid trading history, tangible assets as security and accurate paperwork. UK Business Loans does not lend money; we match businesses seeking funding (typically from around £10,000 upwards) with specialist lenders and brokers who consider imperfect credit cases. Complete a Free Eligibility Check to get matched quickly — it won’t affect your credit score.

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Quick answer — TL;DR

Yes — in many cases equipment finance is still available after adverse credit or a previous decline. Lenders that specialise in asset-backed deals place more weight on the equipment and business cashflow than a single past decline. Expect trade-offs (higher rates, deposit, shorter term, or a guarantor). Use a specialist introducer like UK Business Loans to be matched to brokers and lenders with experience placing “imperfect credit” cases. Get a free quote — Start now.

How equipment finance works when you have adverse credit (what UK Business Loans does)

Equipment finance is asset-based: the equipment you buy (or lease) often acts as security. This makes lenders more flexible than for unsecured loans. UK Business Loans acts as an introducer. When you submit a short enquiry we match your business to lenders and brokers who specialise in equipment funding for businesses with imperfect credit histories.

• Common finance types: Hire Purchase (HP), Finance Lease, Operating Lease, Asset Refinance.
• Security: The asset itself is the primary security; lenders can repossess if repayments stop.
• Introducer role: We gather basic details and match you to the most suitable lenders/brokers — you then discuss terms with them directly.

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Who is most likely to be offered equipment finance after adverse credit?

Not every insurer or bank will accept adverse-credit cases, but many specialist asset finance houses, broker networks and challenger lenders will consider them. Those most likely to secure finance are businesses that can show:

• Clear, verifiable trading history (often 1–3+ years).
• Stable, bank-account cashflow demonstrating ability to service repayments.
• Assets with good resale value or contractor/dealer backing.
• Problems in the past that are aged or explainable (e.g., a CCJ or default more than 2–3 years old with evidence of settled amounts).

Typical lender checklist — what lenders look for

• Business trading history and company structure (limited companies preferred).
• Recent bank statements (usually 3–6 months).
• Management accounts or annual accounts (12–24 months where available).
• VAT returns / evidence of regular revenue where applicable.
• Director experience and CV (relevant industry experience helps).
• Details of adverse credit: CCJs, defaults, IVA, bankruptcies — dates and amounts.
• Deposit or equity contribution (often 10–30% for adverse credit cases).
• Quotes and specifications for the equipment (age, mileage, warranty).
• Willingness to provide a personal or third-party guarantee where required.

Options if you’ve been declined or have adverse credit

If you’ve been declined before, don’t assume every lender will refuse. Consider these realistic routes:

• Specialist asset finance lenders: These lenders focus on the equipment’s value and can accept imperfect credit with adjusted pricing.
• Broker introductions: Specialist brokers have access to niche panels and can place higher-risk cases.
• Hire Purchase with a larger deposit: Reduces lender risk and improves chances of acceptance.
• Shorter term or higher repayments: Lenders may offer shorter terms to reduce exposure.
• Third-party guarantor: A director or third party with stronger credit can improve likelihood of approval.
• Dealer finance: Some equipment dealers have relationships with lenders who accept borderline credit.
• Asset refinance: Existing owned equipment can be refinanced to release cash for new purchases.

Note on trade-offs: Finance for adverse credit typically comes with higher interest rates, larger deposits, possible personal guarantees and stricter covenants. These are common risk-based adjustments rather than signs you can’t borrow.

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Steps to improve your chance before applying (actionable checklist)

Prepare these quickly to improve outcomes and speed up decisions:

1. Obtain and review your credit reports (Experian/Equifax/TransUnion) and correct any errors.
2. Gather 3–6 months bank statements and 12–24 months management accounts or VAT returns.
3. Get a clear written explanation for any adverse items (dates, amounts, and evidence of settlement where applicable).
4. Secure up-to-date equipment quotes and supplier details; include maintenance and warranty information.
5. Consider offering a realistic deposit (10–30%) to lower lender risk.
6. Talk to a specialist broker early — they advise whether your case is likely to be placed and how to position it.

Doing these before you apply means lenders can give more competitive terms and reduces delays.

What to expect after you submit an enquiry via UK Business Loans

• Speed: Matches and initial responses are often within hours to 48 hours, depending on complexity.
• Contact: A matched broker or lender will usually call or email to clarify details and request documents.
• No immediate credit hit: Submitting our enquiry form does not affect your credit score. Lenders may perform formal checks later if you proceed.
• Possible outcomes: straight approval, conditional offer (higher deposit/guarantor), counter-offer with adjusted term/rate, or a polite decline with advice on next steps.

Start Free Eligibility Check — No impact on credit score

Real examples (short case studies)

Construction company with a 4-year-old CCJ

Problem: One CCJ from a supplier in 2019. Needed an excavator (£65,000).

Route: Matched to a specialist asset finance broker who negotiated a hire purchase with a 20% deposit and a 4-year term.

Result: Equipment delivered; repayments affordable and CCJ was shown to be historic with supporting paperwork — lender accepted the risk-adjusted price.

Complete Our 1-Minute Enquiry Form Now – Get a No-Obligation Quote

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Catering business previously declined by a high street bank

Problem: Bank declined due to seasonal cashflow volatility.

Route: Dealer finance via a specialist lender offered a finance lease covering used ovens at lower deposit but slightly higher rate; shorter term to reduce lender exposure.

Result: Business upgraded kit and improved kitchen throughput; lender took the used equipment as security.

Risks, costs and compliance — what you must know

• Higher rates and fees: Imperfect-credit deals usually cost more to reflect increased lender risk.
• Personal guarantees: Often required; a default could put personal assets at risk.
• Repossession risk: Equipment finance is typically secured against the asset — missed payments can lead to repossession.
• Early termination/exit fees: Leases and HP agreements often include penalties if you end the contract early.
• Introducer disclaimer: UK Business Loans is an introducer. We do not lend and do not provide regulated financial advice. Matched brokers and lenders will provide terms, and they may carry out credit checks if you progress an application.

Frequently asked questions (FAQ)

Can a previous CCJ stop me from getting equipment finance?

Not necessarily. Lenders consider the size, age and whether it’s been settled. Older, small, or satisfied CCJs are less damaging. Specialist lenders still place cases with CCJs, often with adjustments.

Will applying through UK Business Loans hurt my credit rating?

No. Completing our short enquiry form does not affect your credit file. Formal credit checks by lenders may occur later if you choose to proceed.

How quickly will I receive quotes?

Often within hours to 48 hours after enquiry, depending on document availability and case complexity.

What documents will lenders ask for?

Typical requests include bank statements, management accounts or VAT returns, equipment quotes, director ID, and details of any adverse credit events.

Can I finance used equipment with bad credit?

Yes. Many lenders will finance used equipment, though they check age, condition and resale value. Used equipment deals sometimes require larger deposits.

Do you only work with FCA-regulated lenders?

We connect you to a broad panel of lenders and brokers. Some may be FCA-regulated, others may be specialist non-FCA lenders. Your matched partner will provide full terms.

Final summary & next steps

If you’ve had a previous decline or have adverse credit, don’t assume equipment finance is out of reach. Documentary preparation, realistic deposit expectations and speaking to specialist brokers/lenders significantly improve outcomes. UK Business Loans can match you to the right partners quickly — our service is free and your enquiry won’t affect your credit score. For equipment funding from around £10,000 upwards, Get Quote Now — Free Eligibility Check.

Looking for general background on the products we connect you to? See our equipment finance guide: equipment finance.

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About this page

Page produced by UK Business Loans — introducer specialists matching UK businesses to lenders and brokers. We are not a lender and we do not give regulated financial advice. Matched brokers and lenders will provide full terms. Last updated: 2025-11-01.

Options at a glance

Option	Typical deposit	Term	Pros	Cons
Hire Purchase	10–30%	2–5 years	Portable ownership at term end	May require guarantor; higher rates for adverse credit
Finance Lease	0–20%	2–5 years	Lower upfront cost	No ownership unless options exercised; early termination fees
Asset refinance	n/a	Varies	Unlocks cash from existing equipment	Reduces equity in asset

1. Can I get equipment finance with adverse credit? — Yes; specialist asset finance lenders and brokers often consider adverse-credit cases by weighting the equipment value and cashflow, though you may face higher rates, a larger deposit or a guarantor.
2. Will submitting an enquiry via UK Business Loans affect my credit score? — No; completing our free eligibility check is just an introducer enquiry and won’t impact your credit file, though matched lenders may carry out checks if you progress.
3. What documents do lenders usually ask for when applying for equipment finance? — Typical requests include 3–6 months of bank statements, 12–24 months management or annual accounts, VAT returns, equipment quotes, director ID and details of any adverse credit.
4. How quickly can I expect quotes for equipment finance? — Most matches and initial quotes arrive within hours to 48 hours after you submit an enquiry, depending on document readiness.
5. Do you lend money or provide regulated financial advice? — No; UK Business Loans is an introducer that connects you with trusted brokers and lenders but does not lend or give regulated advice.
6. Can I finance used equipment or vehicles if I have poor credit? — Yes; many lenders will fund used equipment subject to age, condition and resale value, often requiring a larger deposit or adjusted terms.
7. How much deposit will I typically need for equipment finance with adverse credit? — For imperfect-credit cases lenders commonly ask for a 10–30% deposit to reduce their exposure.
8. Are the brokers and lenders you introduce FCA‑regulated? — We work with a broad panel that includes FCA‑regulated brokers and specialist lenders, and your matched partner will confirm their regulatory status and full terms.
9. What loan amounts can I apply for through UK Business Loans? — Our network generally handles equipment funding from around £10,000 up to multi‑million deals, depending on lender panels and asset type.
10. I was previously declined by a bank—what are my next steps to secure equipment finance? — Prepare clear paperwork, consider specialist brokers or dealer finance, offer a realistic deposit or guarantor, and submit a free eligibility check so we can match you to lenders who place imperfect‑credit cases.