{{article_summary}}
Business loans for bad credit
-
Cash flow challenge: Businesses with poor or historic credit issues that may struggle to access traditional funding when cash flow pressure or urgent costs arise.
-
Perfect for: Small businesses, sole traders, and startups that need funding but have limited credit history or past credit challenges.
Fast decisions. Flexible options. Funding over £2bn to more than 1,000 SMEs every year.
Call us on 01952 956920 to speak to a real cash flow expert. We’ll help you apply for the right type of finance and make sure you get a great deal for your business.
Or click 'Boost your cash flow' below to compare providers.
Our business loan options
Pages in this SectionWhat is a business loan for bad credit
A business loan for bad credit is a funding option designed for businesses that have poor, limited, or historic credit issues but still need access to finance.
Rather than relying solely on credit scores, lenders consider factors such as recent trading performance, cash flow, and affordability. This means businesses that have experienced temporary financial difficulties may still be able to secure funding, even if traditional banks have declined them.
Unsecured business loans for bad credit do not require property or equipment as security, making them a practical option for businesses that want to avoid putting assets at risk while stabilising or growing.
Can you get a business loan with bad credit?
Yes, it is possible to secure business loans for bad credit, but approval depends on more than just your credit score.
Lenders will also consider:
-
Current turnover and cash flow
-
How recent any credit issues were
- Whether issues were situational rather than ongoing
-
Your ability to comfortably meet repayments
This means businesses with historic or one-off credit problems may still qualify for bad credit business loans, particularly where trading performance has improved.
Why businesses choose unsecured loans when credit is poor
Businesses often look for unsecured business loans bad credit because they offer access to funding without putting personal or business assets at risk.
Common reasons include:
-
Managing short-term cash flow gaps
-
Covering VAT or tax bills
-
Paying suppliers or staff during difficult periods
- Investing in growth after financial recovery
Benefits of unsecured business loans for bad credit
Businesses often look for unsecured business loans bad credit because they offer access to funding without putting personal or business assets at risk.
Common reasons include:
-
No asset security required: Your property or equipment is not used as collateral.
-
Accessible funding: Options exist even with poor or historic credit.
-
Predictable repayments: Fixed monthly instalments support cash flow planning.
- Faster decisions: Approval and funding are often quicker than traditional bank loans.
How business loans work with bad credit
-
You apply for funding based on your current business needs.
-
We compare lenders based on your needs
-
You apply with full support throughout
-
Access funds fast to keep your plans on track
Fast decisions. Flexible options. Funding over £2bn to more than 1,000 SMEs every year.
Is a business loan for bad credit right for you?
You want funding that looks beyond your credit score
Access finance assessed on your current business performance and affordability, not just historic credit issues.
You need to stabilise or grow without putting assets at risk
Use an unsecured business loan for bad credit to fund cash flow, equipment, or growth without securing property or equipment.
You’re looking for flexible alternatives to high-street banks
Explore funding options designed for businesses declined by traditional lenders, with clear terms and realistic eligibility.
If that sounds like your business, we’ll help you compare lenders and apply with confidence.
Novuna can support businesses with a range of business loan options
I need funding without collateral
I need to bridge a short-term gap in my finances
I want a loan backed by business assets
I need funding to support day-to-day cash flow
How we help
How Novuna helps businesses access funding fast
Tell us what you need
Start with a simple form or call - tell us your business challenge.
We compare your options
We compare multiple providers to get you a great deal.
Choose the right type of funding
Access a range of short-term funding options including loans, advances, and invoice finance.
Apply with expert support
Get help applying - with a real expert on hand throughout.
Get clear, transparent terms
No jargon, no surprises - just honest advice with no hidden fees.
Receive funding that grows with your sales
Accounts receivable factoring is a scalable solution that flexes as your turnover increases.
Why take action now
Bridge the gap before it slows you down
Get access to fast funding
Acting quickly can give you better terms and more choice
We help you avoid delays or forced decisions due to cash flow
Why choose Novuna Business Cash Flow?
Why businesses trust us with bridging loans
We're highly rated by our existing customers
"The communication and support has been outstanding. Providing me with all the information I needed regarding new clients coming onto our books. The system they use is so user friendly and the drawdown payments are very efficient in the fast moving world of temporary payroll.'
More reviewsWe're a multi-award winning business cash flow specialist
Innovation in the SME Sector 2024
Alternative SME Lender of the Year
SME Lender of the Year 2023
Best Use of Technology 2023
Best Provider 2023
What business loans looks like in your sector
Get funding insights tailored to your industry
Are unsecured business loans the only option if my business has bad credit?
Not necessarily, unsecured business loans for bad credit are one option, but they’re not always the most suitable solution. Depending on how your business operates, other funding options may offer a better fit.
What alternatives are available to unsecured business loans for bad credit?
-
Asset finance: Offer lower rates if you’re purchasing vehicles, machinery, or equipment and are able to use them as security.
- Merchant cash advances: Can work well for businesses with strong card sales but fluctuating income.
-
Invoice finance: if you have unpaid invoices from reliable customers and need to release cash tied up in them.
Can startups get business loans with bad credit?
Yes, although options can be more limited. Many startups search for startup business loans with bad credit, particularly where founders have limited credit history or past financial setbacks.
While approval isn’t guaranteed, lenders may still consider applications where there is evidence of a viable business.
