Recommended by the government’s development bank, which helps SMEs get finance
Business Loans For Bad Credit
Find the right business loan for bad credit. Compare 120+ UK lenders offering funding options for poor credit, startups, and small businesses — all in one place.
- Borrow up to £20m from 120+ lenders
- Options available for poor credit businesses
- Applying won’t affect your credit score
- Apply in minutes
Compare 120+ UK Lenders - Business Loans for Bad Credit
Business Loans for Bad Credit
Business loans for bad credit are designed to help entrepreneurs and SMEs access finance even if they have a poor credit history. While traditional lenders may be hesitant, specialist providers offer funding solutions that focus on business performance and future potential rather than just past credit scores.
These loans can support businesses in managing cash flow, purchasing stock, covering expenses, or investing in growth—even when credit history might otherwise be a barrier.
With a business loan for bad credit, you can:
- Secure funding despite a low credit score
- Improve cash flow and cover essential costs
- Access lenders who specialise in bad credit business finance
While interest rates may be higher, these loans can provide a vital opportunity for businesses to rebuild credit, access working capital, and continue growing despite financial challenges.
Business Loans for Bad Credit
If your credit history isn’t perfect, you can still access funding to stabilise cash flow, invest in growth, and rebuild your profile. Here are the key benefits of bad-credit business finance for startups and SMEs:
Higher Approval Routes
Specialist lenders assess overall business health—not just credit scores—improving your chances.
Fast Decisions & Funding
Streamlined checks and digital underwriting can deliver funding in days when you need it most.
Flexible Options
Choose unsecured, secured, revenue-based, or merchant cash advance to fit your circumstances.
Security & Guarantees
Improve approval odds with collateral, a director’s guarantee, or a co-signer where appropriate.
Cash-Flow Friendly Terms
Align repayments with revenue cycles using fixed terms, seasonal plans, or percentage-of-takings.
Rebuild Your Credit
Make on-time repayments to strengthen your business credit profile and access better rates later.
About Funding Options
Funding Options is our trusted UK partner that makes it simple to compare business loans for bad credit. With one quick application, their Funding Cloud technology assesses your profile and matches you with 120+ lenders — so you can review rates, terms, and eligibility in minutes, all without affecting your credit score.
Whether you’re searching for bad credit business loans, small business funding to improve cash flow, or startup loans to get your company off the ground, Funding Options helps you compare tailored finance solutions. Options include unsecured and secured lending, revolving credit, asset and invoice finance, merchant cash advances, bridging loans, and commercial property finance.
How to Compare Business Loans for Bad Credit in Minutes
Startupdeals.co.uk partners with Funding Options to give you access to 120+ UK lenders through one quick form. Their Funding Cloud technology matches you with tailored options — including business loans for bad credit and startup funding. Compare lenders, check eligibility, and review rates in minutes, all without affecting your credit score.
Tell us about your business
Share how much you need, what it’s for, and key details so we can compare business loans matched to your profile.
Compare quotes instantly
Funding Options compare your details against 120+ lenders so you can see tailored finance quotes in seconds.
Apply and get your funding
Apply for finance and initial checks won’t affect your credit score. Receive funds into your account.
Choosing the right loan type
Your goals, cash flow and security available will shape the best fit. Use the tiles below to compare loan types and to explore wider business finance options.
Unsecured Business Loans
Borrow without collateral. Quick decisions; may require a personal guarantee.
Secured Business Loans
Backed by assets for lower rates and larger amounts.
Working Capital / Short-Term Finance
Cover day-to-day costs and short cash-flow gaps.
Revolving Credit Facility
Flexible line of credit — pay interest only on what you use.
Asset Finance
Hire purchase or leasing for vehicles, machinery and equipment.
Invoice Finance
Release cash tied up in invoices (factoring & discounting).
Merchant Cash Advance
Repay via a % of future card sales — flexible with turnover.
Commercial Property Finance
Commercial mortgages & development finance.
Bridging Loans
Short-term funding to bridge a purchase, sale or refinance.
Growth Guarantee Scheme
Government-backed lending via accredited providers.
Bad-Credit Business Loans
Options for thinner files or weaker credit profiles.
Startup Business Loans
Funding to launch or grow a new business—often unsecured, with flexible criteria for early-stage companies.
Who can take out a business loan
- Business types
- Sole traders, partnerships, limited companies, and some nonprofits/social enterprises.
- Stage of business
- Trading 6–24+ months: Widest choice and sharper pricing.
- New/pre-revenue: Fewer options, smaller amounts; startup-focused products exist.
- Financial profile
- Lenders check cash flow, debt levels, and bank activity. Adverse credit isn’t always a “no,” but it may reduce options or increase costs.
- Directors & owners
- ID, address, and credit checks often required. Personal guarantees are common, especially for unsecured loans.
- Security & guarantees
- Unsecured: Faster, simpler, usually requires a personal guarantee.
- Secured: Backed by assets (property, equipment, receivables). Larger amounts, lower rates, but risk if repayments aren’t met.
- Use of funds
- Working capital, hiring, stock, equipment, vehicles, marketing, refinancing, or consolidation (restrictions may apply).
Business Loans for Bad Credit
Find the right loan for your business – its fast and free
Apply today – no obligation, no impact on your credit score
FAQs: Business Loans for Bad Credit (UK)
What are business loans for bad credit?
Business loans for bad credit are finance products designed for companies or sole traders with a poor credit history. They give businesses access to funding even if they’ve faced missed payments, CCJs, or defaults in the past.
Can I get a business loan with bad credit in the UK?
Yes — many lenders offer business loans for bad credit in the UK. While terms may differ, you can still access funding by providing additional security, a personal guarantee, or proving stable cash flow.
What’s the difference between bad credit business loans and standard business loans?
Standard business loans usually require strong credit histories and lower risk. Bad credit business loans are tailored for companies with poor credit and may involve higher interest rates, lower borrowing limits, or secured lending.
Which types of business finance can I apply for with poor credit?
Even with poor credit, you may qualify for secured loans, merchant cash advances, invoice finance, asset finance, or short-term loans. Some lenders specialise in business loans for bad credit only.
How do lenders assess eligibility for business loans for poor credit?
Lenders consider cash flow, affordability, security offered, and your repayment history. A poor credit score doesn’t automatically mean rejection, but it may limit options or increase interest rates.
What documents do I need to apply for a bad credit business loan?
Most lenders will ask for: proof of ID, business bank statements, accounts or tax returns, and sometimes a business plan or forecast — especially for startups.
Are there government-backed schemes for businesses with bad credit?
Yes, certain UK schemes — such as the Recovery Loan Scheme — are available to businesses with weaker credit profiles. These can help secure funding when private lenders decline.
What are the best business loans for bad credit UK in 2025?
The best options depend on your circumstances — whether you’re a sole trader, SME, or startup. Specialist lenders often offer more flexible business loans for bad credit than high street banks.
Do business loans for bad credit affect my credit score?
Initial eligibility checks are usually “soft searches,” which don’t impact your score. However, once you apply and are approved, the loan and repayments will appear on your credit record.
How much can I borrow with a poor credit business loan?
Borrowing limits vary, but lenders may offer anywhere from £1,000 to £500,000 depending on your business turnover, security, and repayment capacity.
What interest rates should I expect on business loans for bad credit?
Rates are generally higher than standard loans because of increased risk. The exact rate depends on the lender, loan type, and whether it’s secured or unsecured.
Do sole traders qualify for business loans with bad credit?
Yes, sole traders can apply for business loans with bad credit. Lenders may request personal guarantees or additional documents, but funding is available.
What’s the fastest way to compare business loans for bad credit?
Using a comparison platform is the quickest way. It matches your business profile with suitable lenders, saving time and avoiding multiple credit checks.
Where can I find and compare the best business loans for bad credit?
You can quickly compare over 120 UK lenders with Funding Options, including providers specialising in bad credit business loans.
FAQs: About Funding Options
Is Funding Options a lender or a broker?
Funding Options are a broker, not a lender. They help you compare business loans for bad credit and other finance options from over 120 UK providers, matching you with the most suitable lenders.
No — initial checks are “soft searches” and won’t impact your credit score. Only once you formally apply for a loan will it appear on your record.
The comparison uses a soft search so there’s no impact. A lender may run a hard search if/when you proceed with a full application.
How does Funding Options match my business to lenders?
Their Funding Cloud technology reviews your business profile, credit history, and requirements, then matches you to lenders who are most likely to approve your application.
Are there any fees for using Funding Options?
No, it’s free to use Funding Options. You can compare loan offers without cost, and there’s no obligation to accept any offer.
Can startups use Funding Options?
Yes, startups can apply through Funding Options. While new businesses may have fewer choices, there are specialist lenders who provide bad credit business loans and startup-friendly products.
How fast can Funding Options help me secure funding?
Applications can be completed in minutes, and some lenders provide decisions and funding within 24–48 hours, depending on the loan type.
What loan types can I compare through Funding Options?
You can compare secured and unsecured loans, merchant cash advances, invoice finance, asset finance, bridging loans, and specialist business loans for poor credit.
Is Funding Options safe to use?
Yes — Funding Options is FCA-regulated and recommended by the UK Government’s British Business Bank. They connect you to trusted lenders in a secure, compliant way.
FAQs: About Startup Deals
Do StartupDeals provide business loans directly?
No — StartupDeals does not lend money directly. We work as an introducer partner with Funding Options, who connect UK businesses to more than 120 lenders through their regulated platform.
Is StartupDeals paid by Funding Options?
Yes — if you are successfully matched with a lender and take out finance, StartupDeals may receive a commission from Funding Options. This comes at no extra cost to you as the customer.
Can I trust StartupDeals when applying for a business loan?
Yes — StartupDeals is a trusted affiliate partner of Funding Options. Funding Options is FCA-regulated, and all loan applications are handled securely by them, ensuring compliance and transparency.
Why does StartupDeals recommend Funding Options?
At StartupDeals, our goal is to help startups, sole traders, and SMEs access the tools and services they need to grow. We recommend Funding Options because they provide access to a wide network of over 120 UK lenders — from high street banks to specialist and alternative finance providers. This means that instead of applying to lenders one by one, businesses can complete a single application and quickly see tailored funding options side by side.
Funding Options also uses secure technology to match businesses with lenders most suited to their profile, making the process faster and more efficient. For startups, this can be particularly valuable, as many lenders on the platform specialise in supporting early-stage businesses.
By partnering with Funding Options, we can introduce our audience to a trusted, FCA-regulated broker where they can explore some of the best business loan options in the UK, compare rates and terms, and find funding that may fit their circumstances — all in one place.
Does StartupDeals decide if my business loan is approved?
No — StartupDeals does not make lending decisions. All applications are assessed by Funding Options and their panel of lenders. Approval depends entirely on the lender’s criteria.
Is StartupDeals regulated to provide credit?
StartupDeals does not provide credit directly and is not a lender. We act as an introducer to Funding Options, who are FCA-regulated and work only with authorised UK lenders.
Will it cost me extra to use StartupDeals?
No — you won’t pay any additional fees by applying through StartupDeals. If you proceed with a loan, StartupDeals may receive a commission from Funding Options, but this does not affect the cost of your finance.
Who handles my data if I apply for a loan?
Your loan application and personal data are handled securely by Funding Options, not StartupDeals. They use regulated systems and strict data protection measures to keep your information safe.
Does StartupDeals provide financial advice?
No — StartupDeals does not provide personalised financial or lending advice. We introduce businesses to Funding Options so they can compare loan options. All content on StartupDeals.co.uk is created to be impartial and informative. It is designed to help startups and SMEs explore tools, services, and funding options available in the UK. The information is not intended as financial advice. For tailored guidance, you should seek advice from a qualified financial professional.
Disclaimer: The content on this website is intended for informational purposes only and should not be construed as legal, financial, or professional advice. While we strive to ensure that the information is accurate and up-to-date at the time of publication, please be aware that regulations and circumstances may change. We recommend consulting with a qualified professional for personalised guidance specific to your situation. Additionally, some links on this website may be affiliate links, meaning we may earn a commission if you make a purchase through those links. Please ensure you read and understand all terms and conditions before making any decisions.