CCJ Loans
If you've got a CCJ against your business, you might think your days of accessing finance are over. But that's not always the case. Learn more about how to obtain a business loan with a CCJ.
- Compare a wide range of lenders and rates
- Check your eligibility in minutes
- Find out how much you could borrow
It's fast, free and won't affect your credit score
- What is a CCJ?
- Can I get a CCJ loan without a guarantor?
- Does a CCJ affect my creditworthiness?
- Funding options with a CCJ
- Apply for a CCJ loan
Checking won’t affect your credit score
What is a CCJ?
If you fail to pay a debt and the creditor takes legal action, the court can issue you with a county court judgement (CCJ). This is a court order that will state how much you owe, how to pay your debt and the payment deadline. A CCJ stays on your credit file for six years, unless you pay the CCJ within a month of the judgment date.
Can I get a CCJ loan without a guarantor?
There’s a chance you can apply for a CCJ loan without needing a guarantor. Other loan options that might not require a guarantor include secured loans and merchant cash advances. Secured loans require you to use a high-value asset as collateral; therefore, lenders aren’t as interested in your creditworthiness as a borrower. A merchant cash advance is secured against your future card sales, with repayments automatically deducted when you process credit and debit card transactions (usually 10%).
Does a CCJ affect my creditworthiness?
When lenders check your credit score before granting you a loan, they’re looking for signs of bad credit. That includes CCJs. But it’s important to note that not every CCJ is treated the same way. For example, if you’ve settled the CCJ, a lender will look at you more favourably and consider lending to you. But if it’s still not settled, there’s a good chance they won’t lend to you.
Four ways a CCJ affects your business:
- Suppliers might not want to extend credit terms to you as you pose a higher risk than a business without a CCJ.
- Anyone can find out if you have a CCJ against your business; it’s information that is in the public domain. This means customers and other stakeholders can find it, damaging your brand’s reputation.
- You have fewer financing options. Lenders will view you as higher risk, which means their money is at risk, so you have limited options.
- A CCJ lowers your credit rating, making you high risk for financing in any form.
Checking won’t affect your credit score
How to improve your creditworthiness after a CCJ
By improving your creditworthiness, you’ll appeal to a lot more lenders, which means you’ll have better financing options so you can grow your business.
- Pay debts on time or consider consolidating your debts into one manageable monthly repayment so you don’t miss a payment again.
- Pay your outstanding CCJ within 30 days of receiving the judgment; this removes the CCJ from your credit report.
- Check your credit report regularly to correct any mistakes.
- Rebuild your credit score by using business credit cards and loans sensibly and repaying promptly.
Funding options with a CCJ
Just because you don’t have the choice other businesses might have, doesn’t mean you can’t access business finance. Here are some good options to consider if you have a county court judgement.
It’s worth noting that lenders might ask you to sign a personal guarantee to give them further protection, should your business become unable to repay the debt.
Secured business loan
If you have high-value assets like commercial property or vehicles, you can apply for a secured business loan. Secured loans offer borrowers the opportunity to access high loan amounts (£2 million+), lower interest rates and longer repayment terms. Lenders are less concerned about your credit score with a secured loan, as they can seize your asset and recoup their money if you don’t repay.
Asset finance
Use asset finance to either refinance your current assets or use hire purchase and lease agreements to obtain new assets. As this finance is asset-based, the lender won’t need you to have a perfect credit score.
Invoice finance
With invoice finance, lenders advance you funds from your own outstanding invoices, then when customers pay the invoice, they take a small fee before releasing the remaining funds to you. This is a quick and easy way to access cash without relying on a healthy credit score.
Merchant cash advance
A merchant cash advance is also an advance, but it’s based on your future credit and debit card sales. So if you take card payments from customers, you might be eligible for a merchant cash advance.
Apply for a CCJ loan
Applying for business loans with a CCJ is quick and straightforward. To start, you can easily find and compare eligible loan options by using our free business loan comparison tool. After comparing things like interest rates, term and total repayable, you can click through to continue your application with the lender online.
Getting a quote through our platform doesn’t affect your credit score, and you’re under no obligation to accept any offer presented to you.
Compare CCJ loan direct lenders.
About the author
Adrian T
5/5
Amazingly fast, efficient service, minimal paperwork. So much faster than my business bank of twelve years.
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