Can a manufacturer with adverse credit or CCJs still get finance?
Short answer
Yes. Many UK lenders will fund established manufacturers even with adverse credit or County Court Judgments (CCJs), especially where there is strong collateral, reliable cash flow, a clear explanation for past issues, and evidence that problems have been addressed.
The most accessible options tend to be asset finance, refinance of existing machinery, invoice finance against B2B receivables, and secured working capital supported by guarantees or tangible assets.
Understanding adverse credit and CCJs in manufacturing
What “adverse credit” means for manufacturers
Adverse credit covers missed payments, defaults, arrears, high utilisation, or director-level credit issues. CCJs indicate a court judgment for an unpaid debt, which weighs more heavily than routine late payments.
Manufacturing is capital-intensive and cyclical, so lenders expect bumps. They look for operational resilience, order book visibility, and asset strength, not just a score.
How lenders assess risk beyond your score
Lenders examine the quality and saleability of plant and machinery, the health of your debtor book, gross margins, and the stability of your supply chain. They also examine current liabilities, HMRC status, and aged creditors.
A recent CCJ is not an automatic decline if there is a credible explanation, a plan to settle, and cash flow evidence that supports affordability.
When CCJs are less of a barrier
Settled CCJs, or those under a formal repayment plan with proof, are often viewed more positively. Disputed or insurance-related CCJs can be considered if you supply documentation.
Time helps. The older the adverse events, the easier it can be to obtain funding, provided trading has stabilised.
Typical lender questions you should be ready to answer
What caused the adverse credit, and what has changed to prevent recurrence? How strong is your order pipeline and gross margin outlook?
What assets can support the facility, and what is their current condition and valuation?
Key point
Lenders are ultimately lending to the future, not the past. Clear narrative, evidence of control, and assets or invoices to back a facility can outweigh historic credit challenges.
Finance options that can work with adverse credit
Asset finance for new equipment
Hire purchase and leasing can fund CNC machines, injection moulders, presses, ovens, robotics, and vehicles. The asset itself serves as primary security, which can reduce the importance of a weak credit profile.
Deposits, manufacturer support, or extended terms can further improve approval chances.
Refinance of existing plant and machinery
Refinance (sometimes called sale-and-HP back) unlocks equity in owned assets. This can consolidate costly short-term debt, clear arrears, or fund growth projects with lower monthly outgoings.
Lenders focus on asset value, remaining useful life, and maintenance history rather than your credit score alone.
Invoice finance for B2B receivables
Factoring and invoice discounting advance a percentage of your approved invoices, with repayment when your customers pay. Underwriting leans on debtor quality and dilution rates, not just your credit file.
For manufacturers supplying recognised buyers on terms, invoice finance can be available even with CCJs, provided controls are in place.
Secured working capital loans
Term loans or revolving facilities secured against property, equipment, or multiple assets are possible with adverse credit. Personal guarantees may be requested when security cover is tight.
Your assets may be at risk if you do not keep up repayments on a secured facility.
Purchase order and trade finance
For confirmed orders, providers can finance raw materials and supplier payments. The strength of the end buyer, terms, and logistics controls are the main underwriting anchors.
This can be combined with invoice finance to cover the full cash conversion cycle.
Government-backed options
Some lenders may offer facilities under the British Business Bank’s Growth Guarantee Scheme. The guarantee supports the lender, not the borrower, and does not remove affordability checks.
Eligibility and availability vary by provider and sector, and adverse credit does not automatically exclude you.
When unsecured loans may still work
Shorter-term unsecured working capital can be possible if your cash flow is stable and you can evidence affordability. Expect closer scrutiny of bank statements and management accounts.
Unsecured pricing and limits reflect risk, so strong recent performance and clear use of funds are vital.
Useful internal resource
Explore sector-specific options for your factory, machinery, and cash flow via our page on manufacturing business loans.
Steps to strengthen your case and reduce cost
1) Explain what happened and what changed
Prepare a brief, factual timeline of the issues and the corrective actions taken. Include how you de-risked the same problem recurring, such as supplier diversification or new maintenance schedules.
Attach supporting documents where possible, such as settlement letters or revised contracts.
2) Tidy up CCJs and arrears
If you can settle a CCJ, do so and obtain a Certificate of Satisfaction. Where you dispute it, share evidence and timescales for resolution.
Formal plans with HMRC for VAT or PAYE arrears should be disclosed along with proof of payments made.
3) Evidence cash flow and affordability
Share 6–12 months of bank statements, year-to-date management accounts, and a simple 12-month cash flow forecast. Lenders need to see headroom after repayments.
Highlight recurring revenue streams, contracted orders, and seasonal patterns relevant to your factory’s output.
4) Leverage assets and deposits
Provide an up-to-date asset register with serial numbers, photos, and maintenance logs. A modest deposit or additional collateral can unlock better terms.
Consider equipment refinance to reduce pressure on working capital while improving your application.
5) Present a robust order book
Include copies of purchase orders, framework agreements, or letters of intent. Summarise buyer concentration and the credit standing of your top customers.
If you have credit insurance or strong debtor controls, say so.
Documents lenders commonly request
- Last two years’ filed accounts and current management accounts
- 6–12 months business bank statements
- Aged debtor and creditor summaries
- Asset register and any existing finance schedules
- Order book, key contracts, and supplier terms
- Details of any CCJs, arrears, or HMRC Time To Pay arrangements
Costs, risks, and treating customers fairly
What to expect on pricing
Manufacturers with adverse credit should expect pricing that reflects elevated risk, with stronger terms available as trading stabilises. Asset-backed facilities and invoice finance can be more cost-effective than pure unsecured loans.
Your exact cost will depend on credit profile, asset quality, tenure, sector risk, and security coverage. We do not quote headline rates because they vary by lender and scenario.
Key risks to consider
Missing payments can lead to extra charges, defaults, and enforcement over secured assets. Directors may be required to give personal guarantees on some facilities.
Ensure you understand early settlement terms, variation clauses, and any covenants tied to your funding.
Clear, fair, and not misleading
All information we provide aims to be clear, fair, and not misleading. We do not guarantee approval, lowest rates, or specific outcomes.
Eligibility is subject to status, credit checks, and lender criteria. Terms and conditions apply to each facility.
Our role and how we’re paid
Best Business Loans is an independent introducer that connects UK businesses with relevant lenders and brokers. We do not provide loans or regulated advice.
It is free to submit an enquiry. We may receive an introducer commission from a provider if you proceed, which does not increase the price you pay.
Responsible advertising and compliance
We follow FCA and ASA principles for financial promotions, and Google’s policies for financial services. We avoid unrealistic promises and highlight material risks.
If you have concerns about any promotion, please contact us at hello@bestbusinessloans.ai.
How Best Business Loans helps manufacturers with credit issues
Our AI-led matching process
Tell us what you need via a Quick Quote. Our system assesses your profile and matches you with lenders or brokers open to manufacturers with adverse credit or CCJs.
You review introductions, share documents once, and choose if and when to proceed. There is no obligation to accept any offer.
What makes us different for factories and engineering firms
We focus on asset-rich and B2B-trading sectors where underwriting can look beyond a credit score. That includes machine shops, fabricators, precision engineering, food production, packaging, and automotive supply.
We aim to direct you to specialists in asset finance, invoice finance, refinance, and secured working capital that fit your cash conversion cycle.
When to apply
Apply as soon as you can articulate the story behind your credit issues and show forward momentum. If you can settle or restructure a CCJ quickly, flag that in your enquiry.
Early engagement can reduce time pressure and widen your options, especially when lead times on equipment are significant.
What happens to your credit file
Initial eligibility checks are often soft searches, but this varies by provider. A hard search typically occurs only when you decide to proceed and give explicit consent.
Ask the provider to confirm the type of search at each stage so you can make an informed decision.
Quick FAQs
Can I get asset finance with a CCJ? Often yes, if the CCJ is explained and you have a plausible plan to settle or it is already satisfied, and the asset holds value.
Will poor director credit block funding? Not always. Strong assets, solid debtors, or a cash-positive order book can offset weak personal credit in many cases.
How fast can funding happen? Asset refinance and invoice finance can be arranged relatively quickly once documents are ready, but timing depends on valuations and due diligence.
Do I need security? Asset finance is secured on the equipment. Other facilities may need property, equipment, or personal guarantees, depending on risk.
Does Best Business Loans charge fees to applicants? It is free to submit your Quick Quote. If a fee applies later via a broker or lender, it will be disclosed clearly before you decide.
Ready to explore your options? Submit a Quick Quote for a no-obligation eligibility check. We will connect you with funding partners who understand manufacturing and can assess applications with recent adverse credit or CCJs.
Important information
- Best Business Loans is an independent introducer. We do not offer loans or provide regulated financial advice.
- All finance is subject to status, affordability checks, and provider criteria. Terms, conditions, and exclusions apply.
- For secured facilities, your assets may be at risk if you do not keep up repayments.
- Information on this page is for general guidance only and is not a recommendation.
- Updated: October 2025.
About Best Business Loans
BestBusinessLoans.ai helps established UK companies find suitable commercial finance providers through AI-driven matching and a vetted network of lenders and brokers. We commonly support asset-rich sectors including manufacturing, engineering, logistics, construction, healthcare, and related B2B industries.
Questions before you apply? Email hello@bestbusinessloans.ai. Submitting your Quick Quote is fast, secure, and without obligation.