{"id":4733,"date":"2026-09-18T09:50:55","date_gmt":"2026-09-18T09:50:55","guid":{"rendered":"https:\/\/www.figuralloans.com\/blog\/?p=4733"},"modified":"2026-09-18T09:50:55","modified_gmt":"2026-09-18T09:50:55","slug":"top-lenders-for-small-business-loans-with-bad-credit","status":"publish","type":"post","link":"https:\/\/www.figuralloans.com\/blog\/top-lenders-for-small-business-loans-with-bad-credit\/","title":{"rendered":"Top lenders for small business loans with bad credit\u00a0"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Top lenders for small business loans with bad credit include, but are not limited to, FiguralLoans, Capify, Funding Circle, Fleximize, and iwoca.<\/em><em>&nbsp;<\/em>&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you are looking to borrow money for your business, it can be hard to qualify for a loan with a less-than-perfect credit score. Most lenders prefer a decent credit score. In the absence of a business credit report, your personal credit history will serve as the basis for a lending decision. <strong><a href=\"https:\/\/www.figuralloans.com\/business-loans\/bad-credit.html\">Bad credit business loans<\/a><\/strong> are available from various lenders, but you should carefully compare interest rates and fees to ensure that the loan best suits your financial circumstances.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There is no doubt that securing funds with bad credit is quite challenging. Although various lenders are out there to approve your application, they charge high interest rates. Do not forget that interest payments might strain cash flow, which often disrupts business operations.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When using these loans, you should carefully assess your needs and suitability.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are business loans?<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/www.figuralloans.com\/business-loans.html\">Small business loans in the UK<\/a><\/strong> refer to a sum of money that you borrow to fund your business expenses. They can be used for a wide range of expenses. Figural Loans offers the following types of business loans:\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Self-employed loans<\/strong> \u2013 these loans are aimed at the self-employed. Their personal credit history is taken into account.\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Working capital loans<\/strong> \u2013 these loans can help cover all types of expenses, whether you are a start-up or an established company.\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Short-term business loans<\/strong> \u2013 these loans can help cover all types of expenses whether you are a start-up or an established company.\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Unsecured business loans<\/strong> \u2013 these loans are not backed by collateral, but you might be required to give a personal guarantee.\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Secured business loans<\/strong> \u2013 your business assets and personal assets secure these loans if you are self-employed. You can lose your assets if you fail to clear dues on time.\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Business loans for women<\/strong> \u2013 these loans are aimed at women entrepreneurs. They can be secured and unsecured.\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Bad credit business loans<\/strong> \u2013 these loans are aimed at businesses with bad credit. Business loans with bad credit come with high interest rates.\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Top lenders for small business loans with bad credit\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Here are the top lenders in the UK that offer small business loans:&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Figural Loans\u00a0<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Loan amount &#8211; \u00a35,000 to \u00a3300,000&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Repayment term \u2013 up to 5 years&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Interest rates \u2013 based on your creditworthiness&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Trading history \u2013 startups can apply&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Decision \u2013 within 24 to 48 hours&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fees \u2013 no early repayment charges&nbsp;<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Funding Circle\u00a0<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Loan amount &#8211; \u00a310,000 to \u00a3750,000\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Repayment term \u2013 maximum six years\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Interest rates \u2013 6.9% per annum\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Trading history \u2013at least one year\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Decision \u2013 within 24 to 48 hours\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fees \u2013 one-off processing fees, no early repayment charges\u00a0<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Fleximize\u00a0<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Loan amount &#8211; \u00a310,000 to \u00a31,000,000\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Repayment term \u2013 3 to 60 months\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Interest rates \u2013 0.3% to 1.9% per month\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Trading history \u2013 at least 6 months\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Decision \u2013 within 24 to 48 hours\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fees \u2013 no early repayment charges\u00a0<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">iwoca\u00a0<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Loan amount &#8211; \u00a31,000 to \u00a31,000,000\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Repayment term \u2013 up to 5 years\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Interest rates \u2013 1.5% to 5.7% per month\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Trading history \u2013 startups are eligible\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Decision \u2013 within 24 to 48 hours\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fees \u2013 no early repayment charges\u00a0<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Capify\u00a0\u00a0<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Loan amount &#8211; \u00a310,000 to \u00a33,000,000\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Repayment term \u2013 3 to 12 months\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Interest rates \u2013 factor rates, not traditional APRs\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Trading history \u2013 at least 12 months\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Decision \u2013 within 24 to 48 hours\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fees \u2013 no early repayment charges\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What are the advantages and drawbacks of bad credit business loans?\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The following are advantages and drawbacks of bad credit business loans:&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Pros<\/strong>&nbsp;<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Access to funding despite bad credit<\/strong>\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The greatest benefit is that you can access funding despite poor credit. While interest rates will be high, you receive funds instantly. You are <a href=\"https:\/\/www.figuralloans.com\/business-loans\/new-business-startup-loans.html\">eligible for startup loans<\/a> as well. If you have a business plan, you can easily qualify for a start-up loan. Some lenders also provide loans to businesses with compromised credit histories.\u00a0\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Fast approval<\/strong>\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Approval is made instantly. You will receive approval within 24 to 48 hours. Your business will not struggle if you need money this instant.&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Flexible repayment structures<\/strong>\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Most lenders will offer you a repayment plan tailored to your business condition. This will help you adhere to repayment plans. Some lenders prefer weekly repayments, while others prefer monthly. You can choose as per your own financial condition.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Limitations and risks<\/strong>&nbsp;<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>High interest rates<\/strong>\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Interest rates for bad credit business loans are quite high. Starting APRs are 30%. It is enjoined that you carefully compare interest rates. If possible, choose safer alternatives.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Contacting a broker can be helpful if you need a large amount of a business loan despite a poor credit rating. They will connect you to lenders whose criteria you easily match. The biggest benefit of contacting a broker is that they can help you qualify for exclusive deals that are not directly available from lenders.&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>A personal guarantee may be required<\/strong>\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Even though small businesses are unsecured, lenders might require you to give a personal guarantee. If you fail to discharge the business debt, you will have to pay it off personally. Your personal assets are at risk in case your business fails to clear the debt.&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Limited options<\/strong>\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Though most lenders give an opportunity to entrepreneurs who are refused by others, it does not mean that you can get approval regardless of how bad your credit score is. If your credit rating is not perfect, you may not be eligible for all types of business loans, and the loan amount will also be restricted.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The final word\u00a0<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Various top lenders provide small business loans with bad credit, but you should carefully assess your business situation and needs. Though small business loans are unsecured, a personal guarantee increases the risk of losing your personal assets in case of default. Choose a business loan that is suitable to your current situation.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>FAQs<\/strong>&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>What are the ways to improve approval chances?<\/strong>\u00a0<\/h4>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\"><\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">In order to improve your chances of being accepted for a business loan:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Try to maintain steady cash flow. Lenders prioritise cash flow over revenue.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Try not to have a bad credit score. If you have a business credit rating, it should not be less than 25.\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Clear your existing debts because too much debt can affect your ability to borrow money.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Prepare all documents such as bank statements, turnover records, profit and loss statements, etc.\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Are revenue-based loans better?<\/strong>\u00a0<\/h4>\n\n\n\n<ol start=\"2\" class=\"wp-block-list\"><\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Revenue-based loans are merchant cash advances. They are aimed at businesses with a high volume of card sales. If you meet the criteria, you might want to consider them, but whether or not they are cheaper than business loans depend on the factor rate you get.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>What do startups need to get a business loan?<\/strong>\u00a0<\/h4>\n\n\n\n<ol start=\"3\" class=\"wp-block-list\"><\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Startups need to submit almost the same documents that established businesses have to do, but they need to submit a business plan as well. Lenders would like to know how likely your business is going to be successful down the line.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Top lenders for small business loans with bad credit include, but are not limited to, FiguralLoans, Capify, Funding Circle, Fleximize, and iwoca.&nbsp;&nbsp; If you are looking to borrow money for your business, it can be hard to qualify for a loan with a less-than-perfect credit score. Most lenders prefer a &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.figuralloans.com\/blog\/top-lenders-for-small-business-loans-with-bad-credit\/\" class=\"more-link business-booster-excerpt-btn\">Continue reading<span class=\"screen-reader-text\"> &#8220;Top lenders for small business loans with bad credit\u00a0&#8220;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":4734,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[133],"class_list":["post-4733","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance","tag-small-business-loans"],"_links":{"self":[{"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/posts\/4733","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/comments?post=4733"}],"version-history":[{"count":1,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/posts\/4733\/revisions"}],"predecessor-version":[{"id":4735,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/posts\/4733\/revisions\/4735"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/media\/4734"}],"wp:attachment":[{"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/media?parent=4733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/categories?post=4733"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/tags?post=4733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}