Bad Credit Business Loans up to £500,000

Borrow £1,000 – £500,000 for 1 day to 2 years with our flexible business loans.

24 hours to get a decision

Easy Application

No fees for repaying early

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  5. Bad Credit Business Loans up to £500,000


  • Businesses with bad credit can still receive business funding despite not having a great credit history or rating.
  • Minimum eligibility: The business owner must be over 18 and the business is a limited company based in the UK.
  • Businesses can apply for funding between £1,000 – £500,000 by completing the online application.
  • Interest rates vary between 2% – 6% with a maximum repayment period of 24 months.
  • If approved, funding can be transferred to the designated bank account within minutes.

What is a bad credit business loan?

Some businesses do not have the best credit file or may have a poor credit history, this can often impact whether they are accepted for funding. However, there are funding options available for businesses that take into account the poor credit rating of a history.

Can I get a business loan if I have a bad credit rating?

The short answer is yes. Businesses can still successfully receive business finance despite having a poor credit rating. However, having a bad credit score will likely affect the amount of funding a business receives and how much interest is charged on the loan.

During the assessment of business finance applications, the lender will undertake soft credit checks to generate an accurate assessment and ensure that the lender operates responsibly. 

However, other aspects of the business are also considered such as the bank statements or VAT returns. By assessing more than one part of a company, it creates a more comprehensive assessment of the business.

How does a business loan work if a business has bad credit?

An unsecured business loan works by a business owner borrowing an agreed amount from a lender. As the loan is unsecured, the business does not need to attach any collateral to the loan. The business is required to repay the loan via monthly repayments plus interest for the agreed repayment period.

If a business has bad credit, this does not affect how the loan works, it will likely only affect how much money is offered and the interest rates charged.

How can I apply for a bad credit business loan?

Businesses that have bad credit can still apply for a business loan. To apply for an unsecured loan, simply go to the For Kredit website and complete the online application. The application asks some basic questions about the business and requires some basic documentation.

Once the application is submitted a decision will be made and if successful, the applicant can be approved within 24 hours. Once approved, the business owner can decide how much they need and transfer the money into their bank.

How much funding can I receive from a bad credit business loan?

Businesses can apply for unsecured funding between £1,000 – £500,000 when applying with For Kredit. The amount of funding that is lent to a business is decided by the lender, therefore the amount of money initially applied for may differ from the lender’s final offer.

Is my business eligible for a business loan?

To be eligible for a business loan, the minimum criteria must be met:

  • The owner of the business is over the age of 18 years old.
  • The business is a limited company.
  • The limited company is based in the UK.

Although a business may match the criteria above, it does not necessarily guarantee that the applicant will be approved for business finance.

What are the repayment terms of a business loan?

A business can choose to repay the loan from 1 – 24 months and interest rates vary between 2% – 6%. There are no early repayment fees, therefore a business is allowed to repay the money they owe earlier if they wish to.

Will I need to sign a personal guarantee if I have bad credit?

Yes, the director of a business will need to sign a personal guarantee when applying for a business loan regardless of whether they have a good or bad credit rating. This helps to minimise risk to the lender.

The personal guarantee legally ensures that the director of the company is responsible for repaying any unpaid debt, should the business fail to repay the loan for whatever reason i.e. liquidation.

What are the rates and fees on a bad credit business loan?

Currently, the interest rates that are charged on loans vary from 2% – 6% per month. Interest accrues on a daily basis which allows businesses to only pay each day that the business still owes money to the lender.

Why do some businesses have a bad credit score?

The business is new

One of the reasons a business may struggle to find funding is because they are new and have not been trading for a long enough period. Technically, this does not mean that they have a bad credit rating, it is rather that they do not have a credit history. Therefore, it is difficult for lenders to make an accurate assessment when approving the business for funding.

Missed or late previous loan payments

A contributing factor to a business having a bad credit score is that they have missed or been late on loan repayments in the past. This can really damage the credit score of a business and can be a red flag to some lenders as it suggests that the applicant is potentially riskier.

County Court Judgement (CCJ)

A CCJ is where a court rules that a person owes someone money that needs to be paid back. This negatively affects a person’s credit score and can often be detrimental to whether the applicant can receive business funding.

Filing accounts late to Companies House

If a business owner regularly files their business accounts late to Companies House it negatively impacts their credit score. This is because late filing does not provide an accurate assessment of how the business has performed in the financial year.

What other finance options are available for my business?

There are many products to consider when applying for business finance, often this depends on the situation, the industry a business is in, and the type of business. At For Kredit, we focus on unsecured funding for a number of different situations and business types.


How much can I borrow when applying for a bad credit business loan?

Businesses with bad credit can apply for funding between £1,000 – £500,000 when they apply with For Kredit. Having bad credit may affect how much the lender offers but does not necessarily stop a business from being approved.

How can I apply for a bad credit business loan?

Businesses that have bad credit can apply for a loan online via the For Kredit website. The application is easy to complete and quick to fill out. Furthermore, the application is compatible with both desktop and mobile devices.

How long do I have to repay the bad credit business loan?

Unsecured business loans can be repaid between 1 – 24 months, depending on the applicant’s situation. The repayments are repaid in monthly instalments including interest.

Find the right loan for your business

  • Loans from £1k to £500k
  • No fixed repayments
  • No collateral needed

Will You Qualify For A For Kredit Loan?

There are four main criteria for qualifying for a For Kredit loan.

If you can answer yes to all of these, then you have a good chance of being approved.

You’re a director with a UK address

You’ll also need the relevant documentation to prove this – a passport or a birth certificate are fine.

You’re a UK limited company or limited partnership

We only work with UK businesses.

You have a turnover of at least £10k

We can accept applications from all businesses (no matter the age or industry)

You have been trading for over 6 months

Your business must be at least 6 months old to be accepted.

A Simple Application Process

  • Apply online in 5 minutes

    Decide how much money you need to borrow and fill the online application with all your details.

  • Approval in just 24 hours

    Once your business loan has been authorized, you have the flexibility to transfer the required amount to your bank account. The funds will be deposited into your account within just a few hours.

  • Borrow up to 2 years

    How you pay back your business loan depends on your situation. If you want to pay it back early, there won't be an extra fee.

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