Bad credit business loans from £5,000

Borrow from 3 - 36 months.

Bad Credit Business Loans

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What is a bad credit business loan?

A bad credit business loan is a form of unsecured funding which is for business owners who have a poor credit history. It lets businesses access the funding they need to help grow in spite of having poor personal credit.

Can you get a business loan with bad credit?

Yes, if you are a business owner with a poor credit history or have not developed a good credit history yet then you can apply for unsecured business loans. Typically these unsecured loans contain some caveats, due to the perceived risk of lending to individuals with bad credit reports.

Why do business owners apply for a bad credit business loan?

Poor credit history: Typically a business owner will apply for a bad credit loan as they have a poor personal credit history. Having a poor credit history can often mean that business owners struggle to be accepted for business funding, especially from traditional lenders such as banks.

Thin credit file: Some business owners may struggle to access funding as they have not developed a strong enough credit file. If they do not have a strong credit record, this may limit the finance options they can access. This is more likely for startup businesses, which are yet to build a business credit score.

Will I have to sign a personal guarantee?

Yes, it is required for the business owners/directors to sign a personal guarantee. The loan remains unsecured, but the personal guarantee ensures that if the business were to fail, the director(s) will be personally responsible for repaying the outstanding debt.

Generally, most borrowers are confident in their business and will sign a personal guarantee. However, some are concerned with signing a personal guarantee, which is why we are partnered with … to provide personal guarantee insurance to offer greater protection to borrowers.

How much can I borrow?

You can borrow from £5,000 – £50,000 with JPM Capital.

How much interest is charged on a bad credit business loan?

The interest we currently charge on our unsecured business loans ranges from 2% – 2.5%. We do assume more risk than most lenders, which is built into our pricing structure. 

This does allow us to provide unsecured loans to businesses that have been declined in the past, including businesses that have a poor credit history. However, the interest rate on our loans still remains competitive in the market.

What are the advantages and disadvantages of applying for a business loan if I have bad credit?


Businesses receive access to funding: The main positive of a bad credit business loan is that it allows companies to access the funding they need. This is an advantage for companies that have been rejected for business finance in the past on account of their credit record.

Less risk of losing assets: The bad credit business loans we provide are unsecured, which means that a business does not need to secure an asset as collateral. This reduces the risk of a business losing assets.

Speed: Our loans are built on speed, service and commercial underwriting. Therefore, we look to process the applications as quickly as possible.


Higher rates of interest: One of the disadvantages of having both a bad credit score and unsecured loan, is that they are generally charged with a higher rate of interest. 

Smaller loan amounts: Unsecured loans are typically lent in smaller amounts, due to the risk posed to the lender. However, this only affects businesses that are looking for large sums of money to borrow.

What is bad credit?

Misconceptions of bad credit

There are often a number of misconceptions when it comes to bad credit, in many cases your credit may not be as bad as it seems. As we have a wealth of experience working with clients from across the credit spectrum, we’ve listed three common misconceptions about bad credit.

Amounting Debt: One of the misconceptions is that people believe they have bad credit because they have a lot of debt on a credit card. However, amounting debt is actually considered a positive element to a credit file, as long as you are making the repayments in a timely manner and managing the limits. Therefore, just because you have debt doesn’t necessarily mean you have a bad credit score.

Missing bill payments: Many people believe that missing the occasional bill payment will have a negative effect on their credit score. However, missing a couple of bills is unlikely to have the heaviest impact on your credit score, provided that you do eventually repay your bill. Obviously, missing continuous bills will start to cause an issue if they begin to mount up, however, missing a couple of bill payments may not appear as bad as it seems.

Historic payment issues: Historic payment issues often concern clients who apply for finance, as they believe that it will affect their application despite it happening 12/18 months ago. In reality, although historic credit payments will be seen, they will not necessarily be considered an issue by most lenders as long as they have been managing their finances properly in the last 12/18 months.

Ultimately, different lenders have different approaches when assessing the credibility of a potential client. 

What would be considered as a serious credit issue?

A serious credit issue would include missing a mortgage payment. A mortgage payment is often used by lenders as a good marker for credit reliability. This means that one missed mortgage payment could be considered worse than 6 late electric bill payments. Therefore, it is vital for business owners to ensure that they keep on top of their mortgage payments.

How do I get a business loan with bad credit?

If you have a poor personal credit score and are looking for a business loan, you can apply for a loan with bad credit with JPM Capital. The application process is very simple and is outlined below.

How can I apply for a bad credit business loan?

Call us at 01244 207276: You can directly speak to one of our account managers to discuss applying for an unsecured business loan. Our dedicated account manager will be happy to answer and discuss any questions you may have.

Apply online: To apply online, you can complete the really simple submission form found at the bottom of the page. Once you have submitted your application form, one of our account managers will look to be in contact as soon as possible. 

Am I eligible for a business loan?

To be considered eligible for our business finance, you must meet the following criteria:

  • You must be the owner of an existing UK based business.
  • You must have no active County Court Judgements (CCJs).

What information needs to be provided?

When you apply for a loan, our account managers will ask for some basic information that will be used to assess your application. The documentation generally varies, but we will look for:

  • A copy of your latest business accounts.
  • 3 months of recent bank statements.

Do you make credit checks when assessing your application?

Yes, we do make credit checks on a director’s personal finances. However, a credit check only informs one part of the assessment. We also look at how a business is currently performing and assess its strengths. This is why we consider applicants who may have been declined in the past.

Summary of the business loan

Unsecured Business Loan DETAILS
How much can I borrow? £5,000 – £50,000.
How long can I borrow for? 3 – 36 months.
What is the interest rate on an unsecured business loan? 2 – 2.5% per month.
Do I need to pay a fee? Typically 1% fee, on drawdown.
Do I need to sign a personal guarantee? Yes.

Why choose JPM Capital for a bad credit business loan?

We are a direct lender that aims to help businesses across the UK secure the funding that they need, including those with an adverse credit history. Having started as a commercial credit broker, JPM Capital has since developed into a direct lender of unsecured funding.

With our experience, we are able to help businesses from a number of industries secure the small business loans that they need.

Paul is calm, thoughtful and positive during a period where so many businesses are in panic. I am thankful for his and JPM's continued support and will continue to recommend clients in need to Paul.
Accountants - Glasgow
Featured Case Study

Accountancy firm with cash-flow needs and client funding requirements

We recently dealt with an Accountancy firm who has suffered immediate cash-flow problems as a result of the recent unprecedented global contagion. Clients who paid monthly direct debit retainers have cancelled and debtors which have been due into the firm have requested payment terms. At a time when clients need Accountancy support more than ever it is important that our client was using his time to support clients and not chasing bills!

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