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What is a business loan with bad credit?

Businesses often find themselves in a cash crunch because of endless reasons. During this uncertain phase, it is common to lose track of the debt repayment and get the credit history damaged. Business loans with Bad credit are the financial service that direct lenders offer to borrowers with an imperfect credit history.

  • Past Mistakes are Not Relevant

    The process is similar to the traditional business loan with more emphasise on the present financial condition and profit forecast. We don’t want past financial mistakes to stop you from starting or expanding your current endeavour. Simultaneously, the banks will approve the application of only the best profile with a perfect credit history.

  • A Convenient Alternative of Banks

    Moreover, the online process ensures you don’t have to visit the banks and wait in long queues. Every document will be submitted online at the comfort of your home or office. It is a convenience that makes us the perfect alternatives to these banks with stringent policies.

  • Among the Fastest in Approving Loan

    Also, the approval process is incredibly slow when the loan is applied in a bank. Expect weeks to get approval if the loan application is sent to their central credit control department. At Figuralloans, the application for bad credit business loans is processed as a priority, and the approval is provided within 24 hours.

What are the basics of business loans for bad credit?

Business loans are a financial liability that requires commitment and consistent fund management. There are serious consequences if you sign an agreement with some unreasonable terms. Therefore, getting these basics clear before you fill the application form to get bad credit business loans with guaranteed approval in the UK is recommended.

  • Interest Rates

    Interest rates determine the total cost of the loan and its stress on your finances. There are two types of interest rates offered by lenders – fixed and variable. As the names suggest, fixed interest rates will remain the same throughout the repayment, while the variable interest rates will change based on the market.

    You should compare the different loans and offers from lenders based on the overall cost of the loan, not the interest loan alone. The processing charges and other related fees can make the loan cost more than a slight increase in the rates. Also, the interest rates will be decided by us based on your credit profile and affordability.

  • Tenure

    Borrowers have the option to decide the tenure for the business loan. The longer the duration, the more interest will be paid. Therefore, select a loan tenure based on your affordability and the loan amount.

    A smaller amountcan be repaid within a few months. However, the increased stress of repayment may cause more trouble than a long-term loan. The total cost may increase with a longer tenure, but the instalments will be easier to manage.

  • Instalments

    The interest rates, loan amount, and tenure will decide the instalments you will be paying each month. Any change in these 3 factors will impact the affordability of the loan and the instalments. Therefore, it is recommended to use a business loan calculator to check the affordability before signing the agreement.

    Many borrowers find themselves in deep waters because they selectbad credit business loans’ offer based on interest rates or overall cost only. It makes no sense to sign up for difficult to manage instalments to save some money on the total cost. Therefore, you should measure the affordability based on the instalments, not the total cost or interest rates.

  • Business Idea or Use of Funds

    Every lender in the market will ask for a comprehensive plan to approve the loan application. It confuses many business owners as there is no standard format and procedure to follow to create one. Moreover, the existing businesses need to explain the requirement for a fund to the lenders.

    We provide expert guidance to create a thorough plan for your business. It will help you properly utilise the loan amount since many businesses have failed because of fund mismanagement.

  • Financial Forecast

    No lenders want to repossess the asset of the borrower or take the legal route to get their money back. It is simple math that these options cost more money for us. Therefore, we provide loans to the customer after checking the financial forecast for an assurance of repayment.

    You can take the help of the experts from the accounts department from your organisation. It is recommended to take help from professionals to create a financial forecast. Your account statements will help estimate future earnings.

  • Credit History

    Your credit history has every detail about your liabilities and repayment history for the past 5-7 years. It reflects the responsibility of the management with the finances. A lender may not trust someone with a history of missed payments, defaults, and CCJ.

    For us, these things hold little value if the borrower can provide a repayment plan along with some assurance. We will conduct a soft enquiry on the credit history to check the existing debts and liabilities. This will help us assess your affordability for a loan amount and come up with the ideal offer based on your requirements and profile.

Tips to get bad credit small business loans

If you can afford the loan repayment, our representative will make sure you get the required funds. However, there are some ways to reduce the approval time and get a better offer on a loan. These are some tips from our experts that will help you get bad credit start-up business loans with guaranteed approval in the UK–

  • Prepare the Paperwork
    You will help our representative by preparing the paperwork in advance. There will be no reason to delay the process or reject your application. Though, we provide complete assistance to the borrowers from application until the loan is repaid.

  • Pay the Existing Debts
    Your current list of debts affects affordability since the debt-to-income ratio is very high. We cannot provide a loan if the instalments are difficult to manage with the income forecast. Therefore, pay some debts to increase your chances of approval while clearing some space in the budget for repayment.

  • Offer Security Guarantor
    While it is unnecessary to offer security to get bad credit business loans, security or co-signor will help you qualify to get better interest rates. You need to find the right asset or person for the task that may get troublesome.

What are the types of bad credit business loans in the UK?

We provide 6 types of bad credit loans to the borrowers based on their profile and requirements. These loans differ from each other in terms of interest rates, tenures, available fund, and the purpose of the borrower. Go through the following list to find the right option for your business –

  • Self-Employed
    Self-employed loans are for individuals working independently in the industry. They face a lot of trouble securing a loan because of the inconsistent income and bad credit ratings. Freelancers, sole traders, and entrepreneurs can apply for the self employed loan to set up their workspace or get working capital.

  • New Business
    Your business idea requires the capital amount to turn it into a profitable reality. We provide loans for new businesses even with bad credit based on your idea and financial condition. The affordability of the future-owner will be assessed to approve the application of startup business loans with bad credit.

  • Working Capital
    Your existing business may face a cash crunch because of some unavoidable situation such asa market crash or major accident. The bad credit will increase the trouble because of many rejections and a lengthy process to get funds. Our working capital loan is the perfect solution for your requirements with instant approval and fund disbursement within 24 hours.

  • Short-Term Loans
    Clients running late on payments of the completed projects? A short-term loan will provide temporary relief and funds to pay the supplier and continue the operations. The amount can also cover the investment required to start a new project.

  • Secured Loans
    Secured business loans are the financial support to the businesses who want a loan at manageable interest rates even with bad credit. Our representative will assess the value of security and offer a loan amount. The repayment is flexible to provide support instead of stress during tough times.

  • Unsecured Loans
    You can still get an unsecured star tup business loan for bad credit in the absence of security. Though, the interest rates will be higher than the secured loans. Nonetheless, there will be less stress while repaying the loan since there is no asset on the line.

Loan Type

Reason for the Loan

Maximum Loan Amount


For freelancers, sole traders, and entrepreneurs to manage expenses or start the venture.


New Business

For businessmen to start their own company.


Working Capital

To manage a financial crisis in an existing business.


Short-Term Loans

To avail small loan amount for a short duration.


Secured Loans

To get affordable interest rates by providing an asset as security.


Unsecured Loans

To get a long-term loan for some business-related purpose without security.


Business start-up loans for bad credit in the UK

The competition is quite heavy to get bad credit business loans in the UK. As some experts have once said, “Start-up is the new guitar for the college student”. Everyone wants to become independent of the less-rewarding job and make a fortune with some creative ideas.

This situation has led to thousands of loan application in a single day for business start-ups in the banks. You cannot blame them if they reject your application because of some petty issue. At Figuralloans, we serve a diverse audience and guide them to make sure the great ideas get the opportunity to move out of the garage.

You can apply for bad credit business loans at our website to get the funds for your new endeavour. Our representative will provide a personalised solution and guidance. The bad credit will not impact the application as the financial assessment will include the other factors.

Can i get bad credit business loan if my company has CCJ?

CCJ is a serious concern for lenders as it creates doubt over your financial habits and repayment ability. We will check the CCJ and the cause of it. The loan application will get approved if the reason is genuine.

Many businesses have faced trouble while managing instalment during the pandemic. A situation like this is somewhat understandable as we all have faced financial troubles in life. Therefore, you need to convince the representative for the reason if you want to getbusiness loans with a CCJ.

  • Business loan available for companies with CCJ.

  • we make the final decision after the reason is assessed.

How do I apply for business loans for bad credit?

As mentioned above, there is no need to visit the bank branch to stand in the long queues to get business startup loans for bad credit in the UK. We use the online platform for the application and document submission. It is simple, reliable, convenient, and most importantly, faster than the traditional methods.

  • Fill the Application Form
    You need to fill the online application form on our website to start the process. It will ask for some personal information, loan type, amount, and tenure. For document submission, use scanned copies and upload them on our website.

  • Wait for Approval and Fund Disbursement
    It will take only a few minutes for our representatives to check your application. They will conduct the financial assessment and approve the application if everything is acceptable. The fund will be transferred to your bank account within the next 24 hours of approval.

  • Repayment
    The repayment process is flexible to support customers. You can select the repayment schedule once the loan application is approved. Options to extend the loan term or pay the instalment next month is also available.

Why Figuralloans for bad credit business loan?

At Figuralloans, you will get the personalised loan offer that makes the repayment manageable while meeting the requirements. Following are the major reasons that

make us the perfect alternatives of the banks and other financial institutions –

  • Competitive Interest Rates

  • Unparalleled Customer Service

  • Flexible Repayment

  • No Hard Enquiry on the Credit History

  • Instant Approval and Fast Fund Disbursement

We serve a diverse customer base to support them during a financial emergency. Visit the application page to apply for bad credit small business loans now. There is no time-bound application counter at our website to fill the form.

How to start a business with no money and bad credit

Many people want to start their own business and to be self-employed. For the purpose, they even leave their job. They can aspire for a business but the most significant problem they face is no money to have a start-up.

Therefore, they tend to ask query ‘how to start a business with no money and bad credit’.

Well, you should have some sort of money to get the loan because lenders do not pay the whole amount to open a business. For this, you can have a guarantor with a good credit history and who is a homeowner.

Another way is to keep collateral that has the equal value to the loan amount. Providing either the guarantor or collateral can bring approval even on poor credit too.