Commercial finance for businesses with adverse credit, CCJs or arrears — can you still get funding?

Short answer: Yes — in many cases a limited company can still access commercial finance despite adverse credit, CCJs or arrears, but options, costs and likelihood of success depend on the lender, the product, the size of funding (we typically arrange finance from around £10,000 upwards), whether CCJs are satisfied or recent, and the strength of available security and cashflow. For a tailored, no‑obligation assessment, start with a Free Eligibility Check below.

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Quick answer: can a business with poor credit, CCJs or arrears get commercial finance?

Short version: yes — specialist lenders and brokers often consider businesses with imperfect credit profiles. Acceptable solutions are more likely when issues are historic or settled, the business can evidence steady or improving cashflow, and there is realistic security available (equipment, property or invoices). The right route is to get a tailored eligibility review so you target lenders that will consider your circumstances. Free Eligibility Check — Get Quote Now

Why credit history, CCJs and arrears matter to commercial lenders

How lenders view credit history

Lenders use credit history to judge repayment behaviour and risk. A history of missed payments, active CCJs, defaults or sustained arrears increases perceived risk and often raises interest charges or reduces available term. However, lenders do not all apply the same rules — specialist panels exist that deliberately underwrite higher-risk cases when compensated by security, higher fees, or shorter terms.

Personal vs business credit — and the director angle

Limited companies have their own credit file, but many commercial lenders also review directors’ personal credit histories — especially for smaller businesses or where personal guarantees are requested. Multiple director CCJs, bankruptcies or recent defaults will influence offers. That said, some asset-backed or invoice-based lenders focus more on the assets or receivables than on personal credit.

Arrears vs default vs trading losses — what matters most

Not all adverse items are equal. Recent unsustained arrears can be explained and managed; a CCJ that has been satisfied or is more than a few years old carries less weight. Ongoing trading losses and weak cashflow are a major concern — lenders want to see a credible plan showing how new funds will stabilise the business and enable repayments.

Commercial finance options that may be available with imperfect credit

Different products suit different situations. Specialist lenders and brokers match products to the business’s strengths (asset value, monthly receivables, property, or short-term urgent needs):

• Asset finance (equipment, plant, vehicles) — Lenders often primarily value the asset being funded. If the asset retains resale value, approvals are possible even with adverse credit, though deposits and higher rates are common.
• Invoice finance / factoring — Businesses with strong, undisputed invoices can unlock working capital. Underwriters focus on debtor quality rather than the applicant’s credit file, so this can suit companies recovering from credit issues.
• Merchant cash advances & short-term cashflow loans — Fast but typically expensive. Providers may be willing to advance against card takings or future receivables despite poor credit; suitable for short-term gaps rather than long-term refinancing.
• Bridge finance & specialist secured loans — Short-term, asset-secured lending for property or development projects. Lenders will underwrite the asset value and exit plan; credit blemishes can be accepted if security and exit are strong.
• Commercial mortgages & property finance — Possible but subject to stricter underwriting; settled CCJs, a large deposit and strong rental/repayment forecasts help.
• Refinance and consolidation via specialist brokers — Brokers can sometimes restructure multiple debts into a tailored package. This is more likely when cashflow forecasts and security are available.

For a detailed discussion of secured options and large-value commercial funding, see how commercial finance works in practice via our partner commercial finance.

What specialist lenders and brokers will assess

When you approach lenders or a specialist broker they will typically look at:

• Business trading history and current turnover (growth trends matter).
• Age, number and status of CCJs or County Court actions — whether they’re satisfied or outstanding.
• Details of arrears: who is owed, for how long, and any formal repayment arrangements.
• Cashflow: recent bank statements, ageing of receivables, and management accounts.
• Security available (equipment, property, stock, invoices) and whether directors can offer guarantees.
• Sector risk and the nature of contracts or recurring income.
• Management experience and the business plan to address past issues.

Practical steps to improve your chances of approval

Before contacting lenders or submitting a quick enquiry, get prepared:

• Settle or formally agree repayment plans for CCJs/arrears where possible — a “satisfied” CCJ looks better than an outstanding one.
• Produce clear, recent management accounts and bank statements (3–12 months) and a cashflow forecast showing how finance will be used.
• Correct credit reporting errors on company and director files — small mistakes can cause declines.
• Separate business and personal finances and be ready to explain historic credit issues honestly.
• Consider asset-backed options if you own equipment or property — these reduce lending risk and improve prospects.
• Use a specialist broker (or our matching service) so you target lenders that are known to consider borderline cases.

Have the following ready for your free eligibility check: company registration, recent turnover band, the amount and purpose of funding, brief summary of adverse items (age/status) and contact details.

Typical costs, terms and risks to expect

Expect higher costs and stricter conditions where risk is greater:

• Interest & fees: Specialist or high-risk lending usually attracts higher interest rates and arrangement fees. Transparent comparison is essential.
• Security & guarantees: Many lenders will require fixed charges or personal guarantees which put assets at risk.
• Shorter terms: Some offers are short-term with balloon payments or higher daily/weekly repayments (e.g. merchant cash advances).
• Roll-up risk: Avoid rolling short-term debt repeatedly — this can spiral into unaffordable repayments.

Important: never accept an offer without understanding the total cost, repayment schedule and the consequences of missed payments.

How UK Business Loans helps

We are an introducer connecting limited companies to specialist lenders and brokers — we do not lend or provide regulated financial advice. Our role is to quickly match your business to partners most likely to consider your case.

• Quick, no‑obligation enquiries that do not affect your credit score.
• Targeted matching — we help route your request to lenders who fund from approximately £10,000 upwards.
• Fast responses — many businesses hear back within hours during business hours.

Start your Free Eligibility Check — Get Quote Now

Real examples (anonymised)

Below are brief anonymised snapshots to show realistic outcomes — these are examples, not guarantees.

• Construction firm (settled CCJ) — A regional contractor with a two-year-old, satisfied CCJ secured asset finance for a new digger. Lender valued the asset and required a modest deposit; repayments matched cashflow profile.
• Manufacturing SME (short-term arrears) — A company with temporary supplier arrears secured an invoice finance facility. The underwriting focused on debtor quality rather than the historical arrears, enabling improved working capital.
• Retailer (poor credit, strong security) — Owner provided freehold as security and refinanced existing higher-cost short-term facilities with a secured loan on improved terms.

Frequently asked questions

Can I get a business loan with a CCJ?

Possibly. Specialist lenders and brokers may consider applications where CCJs are older, settled, or when the lending is secured against assets that reduce the lender’s risk. Each case differs — get a free eligibility check to see suitable options.

Will enquiring affect my credit score?

No. Submitting an enquiry via UK Business Loans does not affect your credit file. Lenders may perform checks only if you proceed with a formal application.

Do lenders always check personal credit for limited companies?

Not always, but many will check directors’ personal credit, particularly for smaller loans or where personal guarantees are requested. Be prepared to explain any Director-level issues.

How quickly will I get offers?

Times vary by product and lender. Many firms or brokers contact businesses within hours for initial dialogue; formal offers can take days to weeks depending on underwriting and documentation.

Are the leads you generate free?

Yes — our matching service is free for businesses. There’s no obligation to accept any offer once connected.

Next steps & final CTA

If your company has adverse credit, CCJs or arrears, don’t assume funding is impossible — specialist routes exist. The fastest way to see realistic options is to complete a short, no‑obligation enquiry so we can match you to the best lender or broker for your circumstances.

Get Started — Free Eligibility Check (No obligation)

Disclaimer: UK Business Loans is an introducer. We do not lend money or provide regulated financial advice. Submitting an enquiry is not a loan application and does not affect your credit score. We will match your business with lenders and brokers who can provide quotes and terms based on their own underwriting.

1) Can a UK company with adverse credit, CCJs or arrears get commercial finance?
Yes — specialist lenders and brokers often provide commercial finance to businesses with historic or settled CCJs or arrears when supported by improved cashflow, security or a credible repayment plan.

2) Will submitting an enquiry via UK Business Loans affect my credit score?
No — completing our quick enquiry or Free Eligibility Check does not affect your credit file and only lenders carry out checks if you progress to a formal application.

3) What types of business finance are available if I have poor credit?
Common options include asset finance, invoice finance/factoring, merchant cash advances, bridge or specialist secured loans, commercial mortgages and refinance/consolidation arranged via specialist brokers.

4) How much can I borrow through the lenders and brokers you match me with?
Our partners typically arrange funding from around £10,000 up to multi‑million commercial finance packages depending on security and business strength.

5) What documents will lenders usually ask for when I apply?
Lenders commonly request recent management accounts or abbreviated accounts, 3–12 months of bank statements, VAT returns (if applicable), details of CCJs/arrears and evidence of any settlement or security offered.

6) Do lenders always check directors’ personal credit files for limited companies?
Not always, but many lenders — particularly for smaller loans or where personal guarantees are required — will review directors’ personal credit histories.

7) How quickly can I expect a response after submitting an enquiry?
You can often receive an initial call or email within hours during business hours, while formal offers typically take days to weeks depending on underwriting and documentation.

8) Does using UK Business Loans cost anything or obligate me to accept an offer?
No — our matching service is free, confidential and no‑obligation, so you’re not required to accept any offers you receive.

9) What costs and risks should I expect with specialist or high‑risk lending?
Expect higher interest rates and arrangement fees, possible personal guarantees or fixed charges over assets, shorter terms or balloon payments, and the risk of escalation if repayments are missed.

10) What practical steps can improve my chances of approval for commercial finance?
Improve prospects by settling or formalising CCJs/arrears, preparing clear recent accounts and cashflow forecasts, correcting credit report errors, separating personal and business finances, and offering realistic security or using a specialist broker.