Can I apply if my business has adverse credit, CCJs or late payments?

Short answer

Yes — in most cases you can still apply for business finance if your company has adverse credit, County Court Judgements (CCJs) or late payments.

Your options and the terms you’re offered will depend on the nature, age and scale of the credit issues, plus the type of finance you need and the lender’s risk criteria.

What counts as adverse credit, CCJs and late payments?

“Adverse credit” is an umbrella term that covers missed payments, defaults, CCJs, IVA or bankruptcy records, and debt collection activity.

A CCJ is a court judgment ordering repayment for an unpaid debt, and it will typically appear on both personal and company credit reports where applicable.

Late payments and defaults are recorded on credit files and can be shown to future lenders as indicators of increased risk.

Key things lenders look at

• Whether the negative record is against the company or a director’s personal credit file.
• How old the adverse entry is — recent problems matter more than cleared or older ones.
• The size and reason for the arrears, and whether there is a satisfactory explanation or supporting documents.

Can I still apply for business finance — and what lenders will consider?

Many UK lenders and brokers will accept applications from businesses with imperfect credit, but they will apply different filters and pricing.

Specialist lenders, invoice finance providers, and some asset finance or merchant cash advance companies often underwrite using the business’s cash generation and assets rather than credit score alone.

Types of finance more accessible with adverse credit

• Invoice finance and factoring — lenders focus on customer invoices and their collectability.
• Asset or equipment finance — secured against the equipment being purchased.
• Short-term cashflow facilities or merchant cash advances — priced higher but often flexible on credit history.
• Secured business loans or director-guaranteed facilities — credit issues can be mitigated by security or a personal guarantee.

Unsecured small business loans and high-value commercial mortgages are generally harder to get with recent CCJs or defaults.

Every lender has its own underwriting rules, so a professional matchmaker or broker can quickly identify who will consider your profile.

Practical steps to improve approval chances

Prepare a clear, honest application that explains the circumstances behind adverse entries and how you have mitigated risks since.

Key documents to prepare include management accounts, recent bank statements, VAT returns, a cashflow forecast and a brief explanation of the CCJ or late payment event.

Actions that can materially help

• Settle outstanding CCJs or enter certified repayment plans where possible; settled entries look better to lenders than live judgments.
• Correct any errors on your company and director credit reports via Experian, Equifax or Creditsafe.
• Reduce short-term overdrafts and demonstrate consistent deposits to show improved cashflow management.
• Provide trade references or evidence of repeat custom to show customer-dependent revenues are stable.

Using a specialist broker or a matching platform can prevent multiple hard searches and improve the odds of being introduced only to lenders likely to consider your case.

What to expect during the application and the risks involved

If a lender is willing to proceed, expect stricter pricing, shorter terms and more frequent monitoring than applicants with clean files.

Offers may include higher interest rates, arrangement fees, security requirements, or personal guarantees from directors.

Risks and important warnings

• Higher-cost finance increases the overall repayment burden; always model affordability before signing.
• A failed or declined application can further harm director and company credit if it triggers another hard search.
• A provider that asks for large upfront fees or pressures immediate payment should be treated with caution.

Best practice is to obtain a Decision in Principle or eligibility check before making detailed credit applications, which limits hard credit searches.

How Best Business Loans can help and next steps

Best Business Loans does not provide loans directly; we use AI-driven matching and an experienced network of lenders and brokers to find suitable finance options for businesses with imperfect credit.

Our service helps you identify which types of funding providers are likely to consider your case, reducing wasted applications and unnecessary credit searches.

What we do for businesses with adverse credit

• Quick eligibility checks to identify realistic funding routes for your specific situation.
• Connections to specialist lenders and brokers who evaluate businesses on cashflow and assets as well as credit records.
• Guidance on documents to prepare, how to explain adverse events, and how to improve the chance of approval.

To explore the right funding categories for your needs, see our business finance overview here: https://bestbusinessloans.ai/loan/business-finance/ .

Submit a Quick Quote for a confidential, no-obligation eligibility check and receive matched introductions where appropriate.

Compliance and clarity

Best Business Loans is an independent introducer and not a lender; we do not provide regulated investment advice or loan products directly.

We are not an FCA authorised lender or broker, and information on this site is for guidance only; you should seek tailored advice where necessary.

Key takeaways

• You can usually apply for business finance with adverse credit, but options and cost will vary by lender and product.
• Secured finance, invoice/asset finance and specialist lenders are often more accepting of past credit issues than unsecured loans.
• Fixing errors, settling CCJs, preparing clear financial documents and using a broker or matching service improves your chances.
• Expect higher rates or stricter terms and always model affordability before agreeing to finance.
• Submit a Quick Quote to get an eligibility check and introductions to lenders who may consider your business.

Frequently asked questions

Will one CCJ automatically stop me getting finance?

No — a single, older, or settled CCJ will not always block applications, but it will influence each lender’s decision differently.

Should I settle CCJs before applying?

Settling CCJs or agreeing a repayment plan can materially improve lender perception and eligibility, especially if you can show consistent repayment.

Are there lenders that won’t check my director’s personal credit?

Some asset or invoice finance providers focus on business performance and security rather than solely on director credit history, but many still check both.

How can I avoid multiple hard credit searches?

Use eligibility checks, broker-led soft searches, or Decision in Principle processes to reduce hard searches while assessing options.

Ready to find out what finance you could access? Complete our Quick Quote for a free, confidential eligibility check and we’ll match you to lenders or brokers who may be able to help.