Which finance when the company has poor credit

2 min read

Options narrowBut don't close

Asset-backedMore accessible

Rebuild over timeThe path

What poor credit changes

A weaker company credit record raises the lender's perceived risk, so unsecured borrowing gets harder and pricier. But it rarely closes every door. Finance backed by something — an asset, or your unpaid invoices — is often more accessible, because the security reduces the lender's reliance on your credit score. And some lenders weigh recent trading more than historical blemishes. See the answers on bad-credit borrowing and borrowing with a CCJ.

The more accessible routes

Route	Why it may still work
Invoice finance	Secured on invoices, less reliant on your score
Asset finance	The asset is the security
Lenders weighing recent trading	Look past historical blemishes

Invoice finance and asset finance lean on the security rather than your credit history. And a lender that assesses recent trading and affordability — rather than years of clean accounts — may lend where a score-driven bank would not. See how lenders assess affordability.

Rebuilding credit

Alongside borrowing, rebuild the record: file accounts on time, clear any defaults, keep on top of suppliers and HMRC, and service any new borrowing impeccably. Successfully repaying an affordable facility is one of the better ways to strengthen a company's standing over time. Avoid expensive, easy-to-get products that dig a deeper hole — see when not to borrow.

The Credicorp view

Credicorp assesses limited companies on recent trading and affordability rather than a single credit score, which can help a company with a patchy history but a healthy current position — no personal guarantee. Servicing the facility well also helps rebuild your standing. See our business loans or register to apply. Educational content, not financial advice.

Frequently asked questions

Can a business with poor credit still borrow?

Often, yes, though the options narrow and cost more. Finance backed by security — invoice finance or asset finance — is more accessible because it relies less on your credit score. And some lenders weigh recent trading and affordability over historical blemishes, which can open a door a score-driven bank would close.

What finance is easiest to get with bad credit?

Asset-backed options tend to be most accessible: invoice finance (secured on your invoices) and asset finance (secured on the funded item), because the security reduces reliance on your credit history. A lender that assesses affordability rather than just a score may also lend where others decline.

How do I rebuild my company's credit?

File accounts on time, clear defaults, stay on top of suppliers and HMRC, and service any new borrowing impeccably. Successfully repaying an affordable facility strengthens your standing over time. Avoid expensive, easy-to-get products that worsen your position — rebuilding is steady rather than instant.