Business Funding with Bad Credit UK 2025
80% approval rate for bad credit businesses. iwoca, YouLend, 365 Finance focus on revenue, not credit scores. £3k-£500k available even with 400-600 credit score.
Best Bad Credit Funding Providers
- iwoca (85% approval): Best rates (1.08-1.25x), accepts CCJs/defaults
- YouLend (80% approval): E-commerce focus, credit score less important
- 365 Finance (75% approval): Hospitality specialist, works with challenged credit
- Capify (70% approval): Specifically targets bad credit businesses
Approval Rate by Credit Score
- 700+: 95% approval (excellent credit)
- 650-700: 85% approval (good credit)
- 600-650: 75% approval (fair credit)
- 550-600: 65% approval (poor credit)
- 500-550: 50% approval (bad credit)
- Under 500: 30% approval (very bad credit)
What Matters More Than Credit Score
- Monthly revenue: £10k+/month = 80% approval even with 500 score
- Sales trend: Growing = approved. Declining = declined
- Time trading: 12+ months = overcomes poor credit
Real Example: 480 Credit Score Approved
- • Credit score: 480 (very poor)
- • CCJs: 4 satisfied, totaling £18k
- • Monthly revenue: £14,000 (stable)
- • Trading: 18 months
- • Applied to: iwoca
✓ APPROVED: £30k at 1.28x factor rate
Conclusion
Bad credit doesn't block MCA approval. If revenue is £5k+/month and stable, you have 70-80% approval chance from iwoca/YouLend/365 Finance regardless of credit score.