Business loans with bad credit: the real numbers
Most pages on this subject promise everything and cite nothing. Here is what our own panel data says: of the 55 unsecured lenders we work with, 24 accept defaults or CCJs older than two years, and 8 will look at repeated recent ones. A poor credit file narrows your options. It very rarely empties them.
No lender skips the credit check, and anyone claiming guaranteed approval should worry you. What actually changes your odds is applying to lenders whose criteria already fit your file, rather than burning hard checks on ones that never would.
What our panel accepts
These are counts of distinct lenders on our panel of 200+, by the criteria they publish to brokers. They are the reason a decline from one lender says very little about your chances with the next.
24
unsecured lenders accept defaults or CCJs older than 24 months
8
unsecured lenders consider multiple recent unsecured defaults
42
bridging lenders accept slight adverse credit where property secures the loan
19
bridging lenders will look at heavy adverse credit
19
asset finance lenders consider businesses showing a loss on paper
39
unsecured lenders lend to directors who do not own property
Counts are distinct lenders on our panel with at least one live product matching the criterion, checked September 2026. Panel composition changes over time, and meeting a criterion is not an offer: every case is subject to the lender's own checks.
How lenders band adverse credit
“Bad credit” is not one thing to a lender. The criteria we see from our panel band it into three tiers, and which tier you sit in decides how many doors stay open.
| Tier | What it usually means | Unsecured lenders open | Other routes |
|---|---|---|---|
| Minor | Unsecured defaults or CCJs, all older than 24 months | 24 of 55 | Most stay open, largely on normal terms |
| Moderate | More than one unsecured default or CCJ inside 24 months | 8 of 55 | MCA, invoice and asset routes weigh trade over score |
| Heavy | Recent problems including secured debt, e.g. missed mortgage payments | A small specialist handful | 19 bridging lenders where property secures the loan |
Bands as our panel's lenders describe them in their broker criteria, checked September 2026. Individual lenders draw the lines slightly differently, and every case is subject to the lender's own checks.
The routes that stay open when unsecured narrows
Merchant cash advance
Repaid as a percentage of card takings, so lenders weigh your card turnover far more than your credit file. Works for hospitality, retail and anywhere the card machine is busy. See our MCA guide for costs and the questions to ask first.
MCA guide →Asset finance
The equipment secures the lending, which changes the maths for the lender: 14 of our asset lenders accept business adverse credit and 19 will consider a business showing a loss.
Asset finance guide →Invoice finance
Lending against invoices you have already issued, so your debtors' covenant matters more than your history. 12 of our 20 invoice lenders take phoenix and pre-pack situations, which almost nothing unsecured will.
Invoice finance guide →Secured and property-backed lending
Where property secures the borrowing, adverse credit moves from a blocker to a pricing factor. 42 of our 53 bridging lenders accept slight adverse and 19 will look at heavy adverse.
Bridging guide →Newer businesses often assume trading age is the blocker rather than credit. It is worth separating the two: 21 of our unsecured lenders will lend under one year of trading, and 14 invoice lenders fund start-ups outright.
A note on who we take on
We currently work with UK limited companies and LLPs only, for business and commercial purposes. We complete non-regulated introductions and are not authorised by the Financial Conduct Authority.
How it works
Tell us about the blip
What happened, when, and whether it is settled. Two minutes, soft check only, and honesty here saves wasted applications later.
We match against criteria
Your profile goes only to lenders whose published criteria accept it. No scattergun applications, no stacked hard checks.
You compare and choose
Offers side by side, with the cost of the credit history priced in where lenders apply it. Take one or walk away. Free either way.
The panel behind this page
Adverse-credit cases go to the lenders on our unsecured panel of 55 whose criteria accept the tier your file sits in, with asset, invoice and property-backed panels behind them, part of 200+ lenders across all products. That range matters more than any single rate: the lender that suits a five-year-old limited company with clean accounts is rarely the one that suits a seasonal business or a director with a past blip, and a broker with a shallow panel has to force your case into whichever box it holds.
Names you may recognise on the panel
Examples from our panel as at September 2026, not an endorsement of any lender and not the full list. We check criteria first and put your case only to lenders whose requirements you fit. The full panel by product is in our lender directory, and how we choose is set out on our how we work page.
Frequently asked questions
Can I get a business loan with a CCJ?▼
Often, yes. What matters to lenders is how old it is, how big it was, and whether it is satisfied. A CCJ settled more than two years ago sits in the band most lenders call minor adverse, and 24 of the 55 unsecured lenders on our panel accept that. A recent or unsatisfied CCJ narrows the field to specialist lenders, and secured or asset-backed routes usually stay open where unsecured does not. Figures checked September 2026; panel composition changes over time.
Do you offer no-credit-check business loans?▼
No, and nobody legitimate does. Every lender on our panel checks credit; what varies is how much weight they give it against turnover, trading history and security. Providers advertising guaranteed approval or no checks at all are a warning sign, not a shortcut. What we can do is match your case to lenders whose published criteria accept your credit profile before any application goes in.
Will applying through CapExpand hurt my credit score?▼
The initial assessment uses a soft check, which is not visible to other lenders and does not affect your score. A hard check only happens if you decide to proceed with a specific lender, and because we match against criteria first, your case only goes to lenders whose requirements you already fit. That avoids the scattergun of hard checks that repeated direct applications can leave on your file.
What counts as minor, moderate and heavy adverse credit?▼
Lenders band it roughly like this. Minor: defaults or CCJs that are unsecured and older than 24 months. Moderate: more than one unsecured default or CCJ inside the last 24 months. Heavy: recent problems that include secured borrowing, such as missed mortgage payments. Each band has a different set of lenders willing to look at it, which is why the same business can be declined by one lender and offered terms by another in the same week.
What if my business has weak accounts as well as poor credit?▼
Some lenders assess the trade rather than the paperwork. On our asset finance panel, 19 lenders will consider businesses showing a loss on paper, because the lending is secured on the equipment itself. Invoice finance looks mainly at the quality of your debtor book, and 12 of our invoice lenders even take phoenix companies and pre-pack situations. Where the borrowing can be secured on property, the credit history matters less again.
Is CapExpand FCA regulated?▼
No. CapExpand Ltd is not authorised by the Financial Conduct Authority and only completes non-regulated introductions, which is why we currently work with limited companies and LLPs for business purposes rather than sole traders or partnerships.
Important information
CapExpand Ltd is not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. We work with UK limited companies and LLPs only, for business and commercial purposes. We are not a lender and we do not provide financial, tax or legal advice. We work with a panel of lenders whose particulars are available on request, and we receive commission from the lender if a deal completes, at no cost to you. All lending is subject to status, valuation where applicable and the lender's own checks.
Lender counts on this page come from our broker platform's published criteria, checked September 2026, and describe panel composition rather than the likelihood of any individual offer.
Registered office: Pure Offices, Lake View Drive, Annesley, Nottingham, NG15 0DT. Company No. 14433858.
Find out which lenders fit your file
One soft-check enquiry against the whole panel's criteria. Free, no obligation, and your case only goes to lenders who already accept your credit tier.