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Debt service cover ratio = cash available for debt ÷ annual repayments — a core lender affordability test.
What adverse credit actually blocks
A poor credit score, CCJs or past defaults narrow the field and can raise pricing, because they signal risk. But they do not automatically disqualify a company whose current trading is healthy. The lenders that decline on a score alone are not the only lenders.
What lenders look at instead
Beyond the score sits the live picture: recent bank activity, current affordability, contracts and the trajectory of the business. A firm that stumbled two years ago but is now trading strongly presents very differently from the score alone. Lead with that evidence.
Explaining the record
Context matters. A CCJ from a disputed invoice, a default during a one-off shock since resolved — a clear, honest explanation helps a lender weigh the blemish fairly. Silence invites the worst assumption; explanation invites judgement on the facts.
Rebuild as you borrow
A well-managed facility, repaid on time, is itself a way to rebuild credit. Borrow within comfortable cover, never miss a payment, and each month improves the record. See improving your score and creditworthiness.
Prove you can afford it
Use the calculator to show the cash behind your application, whatever the history.
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
Frequently asked questions
Can I get a business loan with bad credit?
Often yes, with a lender that assesses the whole business rather than a score alone. Strong current cash flow, contracts and a clear explanation of past blemishes can carry an application despite an imperfect history.
What do lenders look at besides my credit score?
Recent bank activity, current affordability and cover, the order book and the trajectory of the business. A company trading strongly now presents very differently from an old score, and good lenders weigh both.
Will a loan help rebuild my business credit?
Yes, if repaid on time. A well-managed facility creates a fresh record of on-time payments, which is exactly what rebuilds a credit file. Borrow within comfortable cover so you never miss a payment.
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