Bad Credit Business Loans
Need funding to grow your business? Don’t let bad credit stand in your way! Apply with Cashfloat for a bad credit business loan. We have paired up with the UK’s leading business loan lenders to get you the best rates and unparalleled service. Receive up to £200,000 within 24 hours from approval!
- Apply for £1,000 to £200,000
- Loan repayment terms up to 12 months
- Rates starting from 2% a month
- 1-day decision
- No penalty for early repayment
- No setup fees or hidden fees
Can I get Business Loans for Bad Credit in the UK?
Yes! Cashfloat, the leading brand for short term loans has begun offering business loans for poor credit to small businesses in the UK. We have teamed up with a leading business loan provider to give our customers with a smooth and transparent business funding solution. Get the best rates and level of service you deserve!
Am I Eligible for Small Business Loans with Bad Credit?
As a business owner, your time is precious, and we won’t waste any of it. Cashfloat’s 5-minute application form makes it easy to apply online for small business loans for bad credit! Double-check that you meet our criteria to speed up the process further:
The loan applicant must:
The business must:
If that sounds like you and your business, then you’re already on your way to getting a small business loan with bad credit! Just fill out our quick application form, and you’ll receive a lending decision within 1 business day. Once you’re approved, you’ll receive funds in just 24 hours!
APPLY NOW FOR UP TO £200K!
How Can I Improve my Business Cedit Score?
Improving your business credit score can help you access better rates and terms when your company needs to borrow money. Here are some insider tips on how to boost your corporate credit score:
- Check and correct any mistakes on your business credit report – the CRA might have an incorrect address on file which makes it hard to verify your identity, or else you could be the victim of fraud which is wrecking your business’ credit score.
- Open a business bank account.
- Pay your bills on time.
- Apply for business credit.
- Don’t rely on your full credit limit.
- File accounts and tax returns on time. Filing late can indicate to lenders that your business is struggling to stay on top of its accounts.
How to Get Startup Loans for Bad Credit
One of the reasons your business might have a bad credit score is because it hasn’t actually launched yet! You haven’t had the chance to prove your business as creditworthy, so lenders are extremely cautious about granting business startup loans for bad credit.
In this case, the most important factor in your application for start-up business loans with bad credit is your personal credit score. Lenders will use your personal history with credit to assess how risky it may be to lend to your business. If you don’t have the best credit score yourself, you may want to consider taking on a partner who has good credit. This will significantly boost your chances of getting the best small business startup loans.
The other deciding factor in a startup business loan application is a solid business plan. If you can show your lender concrete plans for the funding you are requesting, they will be more likely to approve a startup business loan even if you have bad credit.
Another option to explore is startup business grants for bad credit. This type of government-backed funding is usually aimed at encouraging entrepreneurs in specific developing fields. Government grants often have a tedious application process and low approval rate, but if you think your startup qualifies, it may be worth a try.
Where to get a business loan with no credit:
- Small bank loans with bad credit – Banks generally offer the lowest interest rates on the market, but their application process can be tedious. Furthermore, they rarely issue unsecured business loans if you have bad credit. Instead, they will often require collateral as security or a guarantor to co-sign on your loan.
- Government loans for bad credit – There are many government-backed support schemes for both new and existing businesses. These often have excellent rates and terms, and some even include free business mentoring. However, they are notoriously difficult to qualify for and can be challenging to get accepted with bad credit.
- Independent loan companies for bad credit – Several private lenders and brokers offer business funding for bad credit. Still, it’s important to compare rates and terms to ensure you get the best deal. On the one hand, bad credit business finance from private lenders usually have higher interest rates than banks or government-backed loans. On the other hand, the application process is often faster and simpler.
Unfortunately, many traditional lenders are still reluctant to approve business loans with a bad credit score due to the risk and may turn you away. You may have already been rejected by numerous banks, lenders and brokers who make it nearly impossible to get a business loan with no credit.
This is where Cashfloat is different. Thousands of customers have already trusted us with their bad credit short term loan needs. We’ve now expanded and have teamed up with the best business lenders in the UK to offer small business loans to even those with bad credit!
What Are No Credit Check Business Loans?
If you have a very poor business credit score, you might be tempted to opt for no credit check business loans to increase your chances of approval. However, it’s important to know that quick business loans with no credit check are not recommended in the UK. Credit checks are necessary for the borrower’s financial safety, to ensure they do not take on debt they cannot afford to repay. Lenders advertising easy business loans with no credit check may not be FCA regulated and may not have your best interests in mind.
Luckily, Cashfloat offers an excellent alternative to no credit check business loans! Our small business loans for bad credit are safe, authorised and designed for companies like yours! Because we are committed to your safety, we perform a quick credit check, but we always weigh affordability over your credit score. If we see you can afford the repayments, then we are happy to offer you small business loans even with a bad credit history. Apply now to access up to 200K just 24 hours from approval!
Business Loan Guarantor Vs Personal Guarantee
Lending to people with bad credit is a risk for lenders, so many will ask for some sort of security to make the deal less risky. Some lenders require collateral in the form of assets they can repossess if the borrower defaults on the loan. Others may ask you to provide a business loan guarantor or a third party with excellent credit who will take responsibility for the repayments if you default. Finally, some lenders ask for a personal guarantee from the business owners that they will take personal responsibility for the loan repayments if the business fails. All of these are types of secured business loans.
In contrast, Cashfloat only offers unsecured business loans for bad credit. That means we’ll never ask you to risk any of your assets or get a business loan guarantor to secure your loan application. Why? Because we believe in making things uncomplicated.
Bad Credit Business Loan FAQs
What is the definition of a bad credit business loan?
A bad credit business loan is a loan you can get to help your business even if your business has poor credit. Credit reporting angencies define poor credit with different numbers. A TransUnion Score of 565 and below is considered poor, an Experian Score of 720 and below is considered poor and an Equifax Score of 379 and below is considered poor. Have bad credit? Don’t worry. Apply now for a bad credit business loan.
Are business loans for bad credit more expensive?
Getting a business loan with low or poor credit may work out to be more expensive, depending on the lender. At Casfloat, we believe in treating those with bad credit equally to those with a good credit score. Therefore, there is no diffence in the price of our bad credit business loans and business loans with an excellent credit score. Remember, it’s important to undestand exactly how much you will be paying before signing any contract.
Does a business loan affect personal credit in the UK?
A business loan can affect your personal credit if:
One, you sign a personal guarantee for the business loan. In the case that the business would fail or go bankrupt, you would be personally responsible for repaying the debt, which could affect your personal credit.
Two, you are a sole trader rather than an incorporated business. An LTD or LLC company has a separate legal identity and credit history from its owners and directors. However, a sole trader’s business and personal finances are intertwined.
Three, you apply for a bad credit business startup loan. Since your company has no credit history, the lender will carefully examine your credit history to assess your company’s creditworthiness.
Does Cashfloat approve small businesses loans for self-employed people with bad credit?
Yes, but it depends on your particular situation. If you are self-employed and the director of your own company, then you are more than welcome to apply for a Cashfloat loan. At this time, however, Cashfloat does not offer loans for sole traders with bad credit.
As a business owner, your time is precious– and we won’t waste any of it. Our application takes just 5 minutes to complete and we’ll get back to you within 1 working day. Want to speed up the process? Have the following documents ready:
- All your business information, including your company registration number
- Last three months of your business bank statements
- The most recent set of management accounts.
- Last VAT return
Simple. Fast. Reliable. That’s what you get when you work with Cashfloat