Is bad credit stopping you getting a business loan? Discover the finance options available if you or your business has a poor credit rating.
What is bad credit?
Bad credit is when an individual or business is predicted to be unable to repay debt on time and in full, based on a previous history of debt repayments and personal finance information.
A credit history exists for anyone who has ever taken out a loan, used a credit card or paid a bill by instalment. This history includes the amount, frequency and promptness of payments being made on time. It also indicates the total debt of a borrower, the length of their credit history and any credit checks.
This is summarised in a score. A low credit score means that a borrowing business could be considered a risky prospect.