Accessing funding when you need it to grow your business can be difficult especially if you have bad credit as you will probably be turned down by most traditional lenders who are risk-averse.
However, there are some lenders that offer loans and funding to businesses that pose a greater risk. These financial solutions can be more costly due to the risk that is involved and therefore there is less choice available.
Below we have looked at which financial providers offer loans to businesses with bad credit. However, do be aware many will require some sort of additional security (e.g. that you own your own home).
The table below gives a quick price comparison of the top UK providers for business loans for bad credit.
| Company | Minimum loan amount | Maximum loan amount |
|---|---|---|
| 365 Business Finance | £5,000 | £200,000 |
| Aspire | £5,000 | £300,000 |
| Fair Finance | £10,000 | £30,000 |
| ClearFunder | £10,000 | £100,000 |
| Cube Funder | Not stated | Not stated |
| Fleximize | £5,000 | £500,000 |
| Liberis | £2,500 | £300,000 |
* The facts and figures included here come from each company’s website and were accurate at the time of writing (June 2019) but may have since changed. Also, please keep in mind these may not be apples to apples comparisons as each provider offers different solutions. This guide should be used as a starting off point for more research on your part.
Below we profile each of the companies’ services and features in a bit more detail.
Note companies are ranked in no particular order and this no way indicates one solution is better than another.
1. 365 Business Finance
Some of the features and benefits of 365 Business Finance’s business loans for bad credit.
- Offers loans to many businesses that traditional lenders won’t
- Cash advance service
- Repay as your business earns
- A simple and quick application process
- Loans for £5,000 to £200,000
- No fixed terms or repayments
- Flexible payments
- Requires no security or a business plan
- Based on one all-inclusive cost
- Dedicated relationship managers
365 Business Finance is a financial provider that offers merchant cash advance products to small to medium-sized businesses in the UK. Their cash advance service allows businesses to borrow money and repay it through a percentage of their card transactions, which means that payments are truly flexible and will reflect your business’ income.
365 Business Finance’s cash advance product has a simple and quick application process for loans that can range from £5,000 to £200,000. Their loans have no fixed repayment terms or amounts as they are paid at the rate your business earns income which is why they are keen to help your business to grow.
2. Aspire
Some of the features and benefits of Aspire’s business loans for bad credit.
- Offers a variety of bad credit finance and loan options
- Suitable for any credit type and situation
- Minimum 6-month trading
- Transparent with all costs and terms being clear
- Competitive repayment rates
- Specialise in supporting small businesses and start-ups
- Loans from £5,000 to £300,000
- Repayment terms from 1 to 5 years
- Quick and simple process
- Same day decisions
Aspire is a business loan company that focuses on providing loans to most businesses that have been trading for over 6 months and they offer loans that are suitable for any credit type and situation. They will consider all circumstances unlike many of the tradition lenders.
Aspire’s loans are suitable for those with bad credit and they offer loans from £5,000 to £300,000 for periods from 1 year to 5 years. They claim to have transparent pricing and clear terms so there are no surprises and they claim to have competitive repayment rates. They provide a quick and simple loan process with same day decisions.
3. Fair Finance
Some of the features and benefits of Fair Finance’s business loans for bad credit.
- Loans available to those with adverse credit
- Designed for small businesses
- Borrow from £10,000 to £30,000
- Terms from 6 months to 36 months
- Simple and quick online application
- Transparent costs
- No early repayment fees
- Available to a wide variety of businesses
- A social business that re-invests its profits
- Loan decisions are made by humans not scoring systems
Fair Finance is a social lending organisation that reinvests its profits for the benefit of its members to give everyone a fair chance of receiving a loan. They offer a variety of financial products that are designed to help people and businesses that are financially excluded, including women.
Fair Finance’s loans for businesses are available to a variety of small businesses who need a loan for £10,000 to £30,000 for periods between 6 months to 36 months. They offer loans that they claim are transparent with no hidden fees and no early repayment costs. Their website provides a simple process and quick online quotes and decisions which are made by people, not algorisms.
4. ClearFunder
Some of the features and benefits of ClearFunder’s loans:
- Loans with all circumstances considered
- Designed for small to medium-sized businesses
- Loans from £10,000 to £100,000
- Repayment terms from 6 to 12 months
- Flexible terms
- Competitive rates
- Available to a wide variety of businesses
- Any loan purpose
- A quick and simple finance solution
- Offers instant online quote
ClearFunder is an alternative finance solutions provider that offers business loans that are suited to small to medium-sized businesses. They offer loans to a wide variety of business types for any loan purpose. Their website features an online quote tool that gives instant quotes.
ClearFunder’s business loans are available for amounts from £10,000 to £100,000 for periods from 6 months to 12 months. They claim that their business loans have flexible terms and they offer competitive rates on their loans which can be simply set up and quick to arrange with affordable repayments. They offer dedicated support to help you through the loan period.
5. Cube Funder
Some of the features and benefits of Cubefunder’s bad credit loans:
- Offer loans for a variety of poor credit reasons
- Missed payments
- Debt consolidation
- Bad credit
- Operates a responsible lending policy
- Available to businesses of all types
- Inclusive offering
- Unsecured loans
- Do not charge higher interest or large late payment fees
- No footprint left on your credit record
Cubefunder is an alternative finance provider who offers a range of bad credit business loans for those with missed payment history, need to consolidate their debts and those with bad credit ratings. They state that they offer responsible lending to a wide variety of business types and they do not exclude anyone.
Cubefunder’s bad credit business loans are designed to be business friendly loans that do not require you to put up assets or give a guarantor for the loan as they offer unsecured loans. They also promise not to heavily penalise you if you can’t make a payment with higher interest or large late repayment fees.
6. Fleximize
Some of the features and benefits of Fleximize’s business loans for bad credit.
- Loans designed to help SMEs
- Fast and flexible loans
- Unsecured and secured loans
- Loans from £5,000 to £500,000
- Terms from 1 month to 48 months
- No hidden fees
- Can repay early and pay less
- Dedicated relationship manager
- Access to exclusive discounts
- Offers a range of helpful business tools and services
Fleximize is a business lender that operates on a web platform to offer business finance to help SMEs to grow and develop. They offer a range of flexible funding options that they claim will revolutionise business funding through their range of tailored solutions.
Fleximize’s business loans are available as unsecured and secured loans which they can lend from £5,000 to £500,000 on terms from 1 month to 48 months. Their loans are fast to arrange and flexible to meet your business’ needs with no hidden fees and they offer the option to repay your loan early and pay less.
7. Liberis
Some of the features and benefits of Liberis’ business loans for bad credit.
- Business cash advance service
- Designed to assist growing SMEs
- Loans from £2,500 to £300,000
- Has one fixed cost
- Offers high approval rates
- Flexible repayment terms
- Loan repaid through a percentage of your card takings
- Unsecured loan
- No hidden fees or charges
- No late fees
Liberis is an alternative financial provider that offers finance to small businesses in the form of business cash advance service. They offer their product to businesses that have been trading for over four months and have a monthly card income over £2,500.
Liberis’ business cash advance provides funding from £2,500 to £300,000 with no fixed repayment terms as the repayments are flexible and based on a pre-agreed percentage of your card takings which means the more your business grows the quicker the loan is repaid. The loan is an unsecured loan which has no hidden fees or charges including late fees.
* Please note we may be paid a fee if you visit Swoop and/or EJ Finance to take out a loan.