Quick answer (summary)

Short answer: Often yes. Refinancing a UK business loan with poor credit or past missed payments is frequently possible, but options, pricing and speed depend on how recent and serious the missed payments are, the company’s cashflow and profitability, and what security you can offer. Specialist lenders, brokers and alternative finance routes may be able to help for loans from around £10,000 and upwards. Start with a free eligibility check so you can explore realistic options without affecting your credit file: Get Quote Now.

Note: submitting an enquiry is not an application. The short form helps us match your business to the right lenders and brokers who will contact you with options — there’s no obligation to proceed.

How refinancing works for UK business loans — the basics

Refinancing means replacing or restructuring one or more existing business borrowings. Common aims are:

• Lower monthly repayments
• Reduce overall interest costs
• Extend or shorten the loan term to suit cashflow
• Consolidate multiple facilities into a single repayment

Refinance options can be secured (using property, plant or other assets as collateral) or unsecured. For businesses with imperfect credit, secured options can improve eligibility and pricing, while unsecured options may remain available from specialist non-prime lenders — but often at higher cost. The right route depends on your business position and objectives.

Can businesses with poor credit or missed payments refinance?

Yes — many businesses with less-than-perfect credit records successfully refinance. The practical outcome depends on several factors:

Recent vs historic missed payments

Recency matters. A missed payment from last month is treated much more seriously than a late payment recorded two or three years ago, especially if trading has improved since then. Lenders will look at patterns: a single historic miss plus strong current trading is easier to manage than repeated defaults or ongoing arrears.

Limited companies and SMEs — what lenders consider

For incorporated businesses, lenders focus on company accounts, bank statements, turnover and profitability. Director credit histories are considered too when personal guarantees or director support are required. Even with past missed payments, a business showing steady cashflow, contracts or visibility of future income can still access refinance solutions.

Because every lender sets its own criteria, using a broker or introducer increases the chance of finding a match. If you want to check options quickly, start a free eligibility check here: Free Eligibility Check.

Lender types and refinance options that work with imperfect credit

Specialist non-prime business lenders

These lenders focus on businesses outside mainstream underwriting boxes. Pros: more flexible with credit history; faster decisions. Cons: higher interest rates and fees compared with prime lenders. Representative rates vary widely — always compare full terms.

Broker-led panels and specialist brokers

Brokers have access to multiple lenders and can present your case to the most appropriate ones, often improving approval chances and speed. A broker can also advise on packaging your application and whether to offer security or a guarantor.

Secured refinancing

Using business property, commercial real estate, plant or other assets as collateral can unlock better rates and larger loan amounts even with weaker credit. Secured options are common for refinancing amounts from £10,000 upwards.

Invoice finance and asset finance

Where appropriate, invoice finance (unlocking unpaid invoices) or asset finance (using equipment as security) can relieve immediate cashflow pressure and serve as a refinancing route to replace expensive overdrafts or short-term facilities.

Peer-to-peer and alternative lenders

Some alternative lending platforms consider more than just credit scores and may offer a path to refinance. They can be selective about sectors and loan sizes, so broker assistance is valuable.

If you’d like to explore specialist refinance loans for your business, complete a short enquiry and we’ll match you to suitable partners: Get Quote Now.

How missed payments and poor credit affect terms and eligibility

Poor credit typically leads to:

• Higher interest rates and arrangement fees
• Shorter loan terms or increased monthly repayments
• Requests for security or personal guarantees
• More documentation and longer underwriting

Lenders weigh many factors beyond credit score: recent cashflow in/out, management accounts, turnover trends, the sector’s risk profile, existing security and whether the business is profitable or has credible recovery plans. Refinancing is likely to be refused where there are live insolvency proceedings, recent County Court Judgments (CCJs) with ongoing enforcement, or persistent default actions.

Submitting a non-binding enquiry will not affect your credit score.

Step-by-step: How to prepare to refinance with poor credit

1. Check credit reports — review company and director credit files so you know what lenders will see.
2. Gather documents — last 12–24 months’ accounts, recent management accounts, business bank statements and cashflow forecasts.
3. List existing debts — amounts, lenders, monthly payments and any early repayment charges.
4. Prepare explanations — lenders value context. A short, honest note explaining missed payments (e.g., a one-off disruption or seasonal dip) helps.
5. Consider security — identify assets that could be offered to improve terms.
6. Use a broker — a specialist broker or introducer widens your options and speeds up matching.

Ready to see realistic options? Start Your Enquiry and receive free matches from lenders and brokers who may be able to help.

Costs, risks and the effect on your credit score

Common costs when refinancing:

• Arrangement and underwriting fees
• Valuation fees for secured loans
• Early repayment charges (if repaying existing facilities)
• Ongoing admin or servicing fees

Refinancing can improve monthly cashflow, but it can also increase total cost if you extend the term or accept higher rates. Lenders may perform soft or hard credit checks; soft searches do not impact scores. Hard searches may be run once an application is formalised — ask the matched broker which checks they use before proceeding.

All costs and full APRs must be provided by the lender before you commit.

How UK Business Loans can help

UK Business Loans is an introducer that connects businesses to lenders and specialist brokers. We do not lend. Our process is simple:

1. Complete a short enquiry (takes a few minutes).
2. We match your details to lenders and brokers suited to your situation.
3. Matched partners contact you with options and next steps.

You remain in control — there is no obligation to accept any offer. The enquiry is used to find likely matches and does not itself affect your credit file. If you want to see tailored refinance options quickly, complete our free eligibility check: Free Eligibility Check.

Practical tips to improve refinance chances with poor credit

• Improve cashflow before applying — clear small debts where possible.
• Produce a realistic forecast to show future income and repayments.
• Offer security if available to lower perceived risk.
• Be transparent about past problems and the steps taken to resolve them.
• Use a specialist broker to access niche lenders.
• Consider short-term bridging or working capital while you stabilise trading.

Frequently asked questions

Can I refinance a business loan with a bad credit score?

Often yes. Specialist lenders and brokers may refinance businesses with poor credit if the business shows improved trading, steady cashflow, or can offer security. A broker increases your chances by finding the right lender for your circumstances.

Will refinancing with missed payments damage my credit further?

Applying for quotes via our short enquiry does not affect your credit score. Lenders may perform soft searches initially (no impact). Hard searches that appear on your file usually occur only when you submit a full application.

What documents will lenders ask for?

Typical requests: recent company accounts, management accounts, business bank statements, details of existing debts and a short explanation for any missed payments.

How quickly can I get offers?

Many matches come within hours or days. Full offers depend on underwriting; timescales vary by lender and complexity.

Do lenders require personal guarantees or security?

Some do, especially where business credit is weak. Offering security or a guarantee can improve approval odds and pricing.

Are there fees for using UK Business Loans?

No. Our service is free for businesses to use. Brokers or lenders will disclose any fees associated with their products before you commit.

What if my business is in formal insolvency?

If you are subject to insolvency proceedings it is unlikely you can refinance until matters are resolved. Speak to a licensed insolvency practitioner for specialist advice.

How do I get started?

Complete a quick enquiry now and we will match you to lenders and brokers who can review your refinance options: Get Quote Now.

Final summary & next steps

Refinancing a UK business loan with poor credit or past missed payments is frequently achievable, but terms and availability depend on recency of problems, current trading performance and whether you can offer security. To find the best route for your business — and explore realistic, no-obligation options — complete a short enquiry and get matched to specialist lenders and brokers: Free Eligibility Check.

We are an introducer and not a lender. Submitting an enquiry does not commit you to anything and does not affect your credit score. You will receive full terms from the lender or broker before deciding whether to proceed. For full terms, privacy and how we handle data, see our website policies.