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BUSINESS LOANS FOR BAD CREDIT

Don’t let your credit score hold you back with a bad credit business loan

Need a business loan but have a less-than-perfect personal or business credit score? You have options. Many lenders offer funding tailored to businesses with poor or limited credit histories.

  • Rebuild your credit score through regular repayments

  • Use the finance for hiring, big purchases, or any other business reason;

  • Or consolidate other debts into one manageable loan

Apply now

Already a Tide member? You can apply for a business loan and other finance directly within the Tide app.

Tide has joined forces with Funding Options, becoming the largest credit marketplace in the UK. 

Providing over £1.1 billion in funding to more than 19,000 UK businesses, we’re on a mission to help business owners grow with confidence. 

Why use Tide to get a business loan for bad credit?

From online applications to a wide range of lending partners, we’ve built a smarter way for businesses to access the finance they need to thrive.

Apply online in minutes

Save valuable time by applying for a loan through our online process. Our intuitive application is designed to take just a few minutes, allowing you to bypass the paperwork and get back to growing your business in no time.

Compare options easily

Gain access to our network of over 80 trusted lenders to find the right fit. By comparing multiple offers in one place, you'll have a better chance of securing a deal that aligns with your specific business goals and cash flow needs.

Protect your credit score

Check your loan options with total peace of mind. Applying for a loan through Tide has no impact on your credit score, allowing you to see what you qualify for without affecting your financial footprint.

Access a range of business finance options from our trusted partners

What are the benefits of bad credit business loans?

Rebuild credit

Make consistent repayments to gradually improve your business credit score and access better options in the future.

Access funding

Secure the capital you need to grow or cover expenses, even if traditional lenders have turned you down.

Flexible use

Use the finance for almost any business reason, from buying stock to managing cash flow.

Reduce other debt

Consolidate high-interest debts into one, potentially lower monthly payment.

Are you eligible for a business loan with bad credit?

To be eligible for any type of business loan or credit from Tide, you must:

  • Be over 18

  • Be a UK resident

  • Have a UK-based business

  • Have a UK bank account

What do you need to apply for bad credit business loans?

  • Basic information about your business, such as how old it is, and your annual revenue 

  • Information on directors and shareholders

  • Bank statements covering the past year

Depending on your business and the finance you need, the criteria may differ.

How to apply for a business loan with bad credit

  1. Tell us how much you need to borrow We’ll ask you how much you need, what it’s for, and for some basic information about your business.

  2. Compare loans without impacting your credit score We’ll connect you to the largest network of lenders in the UK, so you can view affordable credit options that suit the unique needs of your business.

  3. Apply in minutes Once approved, you’ll receive a quote from a lender you matched with.

  4. Get a decision and credit is released Depending on the type of finance you’ve applied for, the money could be released in around 24 hours.

 Apply now

We've already helped businesses secure more than £1.1 billion

We’ve provided funding to more than 19,000 businesses across the UK, as part of our mission to help business owners grow with confidence.

What is a bad credit business loan?

A bad credit business loan is a type of financing specifically designed for businesses with a low credit score. You can use the loan for any business-related reason, just like a typical business loan.

Since lenders view businesses with poor credit as more risky than those with better credit, they typically offer lower borrowing amounts and charge higher interest rates. So you’ll pay more to borrow money compared to a business with a stronger credit score.

But this isn’t necessarily a dealbreaker. So long as you can keep up with the repayments, it could be a cost-effective way to keep your business growing. And you may find that bad credit business loans are still an attractive option compared to other types of financing, such as business credit cards or short-term merchant cash advances.

How does a bad credit business loan work?

Applying for a bad credit business loan is like applying for a regular business loan, except you’ll face stricter eligibility criteria, such as needing to provide a personal guarantee or business assets as security. These checks can lengthen the time it takes for your application to be reviewed.

You can apply for finance with a variety of lenders that cater for businesses with poor or limited credit histories. Tide can help you compare your options online in minutes and check your eligibility without impacting your credit score.

If your application is successful, you’ll receive the cash upfront, and your business will pay it back in fixed monthly instalments that include interest.

You can usually borrow £2,000-250,000, depending on the lender and your business circumstances.

What can a bad credit business loan be used for?

Buying equipment

When outdated or broken equipment slows you down, a bad credit business loan can fund upgrades or replacements that can keep your business efficient and competitive.

Moving to new premises

A bigger or better-located workspace can transform your business, but moving costs can be high. Securing finance can help you relocate or expand, so you can accommodate growth more easily.

Hiring new staff

A growing business usually needs more people to keep up with demand. With additional financial support now, you can hire skilled employees, so you can increase productivity and keep up with your business’s momentum.

Marketing campaign

It often takes investment to stand out in a crowded market. With a bad credit business loan, you can launch impactful ad campaigns or promotions to reach new customers and drive sales – even if your credit history isn’t perfect.

Boosting cash flow

Unexpected expenses or slow-paying clients can put pressure on your finances. A loan provides the flexibility to cover day-to-day costs, pay suppliers on time, and keep your business running smoothly all year round.

Debt consolidation

If you’re juggling multiple debts with high interest rates, you might be feeling the pressure – both financially and mentally. The good news is you can consolidate what you owe into one, potentially lower, manageable payment.

How to boost your chances of getting a business loan with bad credit

Use business assets as security

Offer valuable assets like equipment, property, or inventory as collateral to reduce the lender’s risk.

Borrow a smaller amount

Apply for no more than what you need, since lenders are more likely to approve smaller loans.

Limit your loan applications

Avoid submitting lots of applications in a short time, as this can negatively impact your credit score.

Use a specialist lender

Lenders that focus on bad credit loans will understand your situation and potentially offer more flexible terms.

Provide a personal guarantee

Back the loan with a personal guarantee to reassure lenders that you’re more likely to repay.

Wait to improve your credit score

Delay applying if possible, and take steps to boost your credit score in the meantime.

Aaron MoOng Ong Buns

With the help of Tide and their team of business finance experts, I was able to navigate the complexities of business finance, and secure the necessary funds to grow my business.

Improve your cash flow with other funding solutions

Business credit cards

Invoice finance

Revolving credit facilities (RCF)

Merchant cash advance (MCA)

How to track your business credit score

Are you wanting to improve your business credit score?

Credit Score Insights is a simple and affordable way to help you understand, track and take action to help you boost your business credit score.

 Track your credit score

Learn more about financing your business

Explore more funding guides
Explore more funding guides

Bad credit business loans FAQs

You can usually get a decision within 24-72 hours from specialist lenders. But traditional banks may take longer, depending on their review process and documentation requirements.

Most lenders offer from around £2,000 up to £250,000, depending on your business revenue, financial performance, and the lender’s risk criteria.

Lenders typically charge higher interest rates than standard business loans to reflect the extra risk. You may also need to pay arrangement or broker fees.

A direct lender application usually involves a hard credit check, which can leave a short-term mark on your credit file. But some providers, including Tide, use a soft credit check that doesn’t impact your score.

Yes, in a lot of cases. Many lenders require a personal guarantee from directors or owners to reduce their risk, particularly if the business doesn’t have many assets or had a poor credit record.

Repayments are generally made monthly over a fixed period. Each instalment includes part of the loan amount plus interest and any agreed fees.

Yes, but your options will be more limited. Specialist lenders or government-backed schemes like Start Up Loans often consider applicants with poor credit if the business plan and forecasts are strong.

Yes, it’s very likely. Lots of specialist lenders focus on small businesses that don’t have the best credit histories. But they may offer smaller amounts or shorter terms with higher interest rates.

You can find them through online lending platforms, like Tide, comparison websites, or brokers that focus on non-bank and alternative finance providers.

It’s not usually necessary, but it can be helpful. A broker who’s familiar with bad credit lenders can match you with suitable options and could improve your chances of approval, but they may charge a fee or commission for their efforts.

We understand businesses, it's all we do

We understand businesses, it's all we do

Tide is built by business owners for business owners. That’s why we’re trusted by over 1.5 million sole traders, freelancers, and limited companies worldwide.

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