Business credit cards for bad credit: what are your options in the UK?

It's possible to get a business credit card with bad credit in the UK, but your options are more limited and the costs are likely to be higher. Most mainstream cards require a reasonable credit history, but some specialist lenders consider your business turnover and trading history alongside your credit score, which can work in your favour even if your personal or business credit file is not in the best shape. This guide explains what lenders look at, which types of cards are accessible with poor credit, what the real costs look like, and what alternatives might be a better fit for your business.

What counts as bad credit for a business?

Bad credit for a business usually means there is evidence that financial commitments have been missed, paid late or left unresolved. This is different from having no credit history. A new business may have little credit data because it has not borrowed before or built up a payment record, but bad credit means lenders can see negative markers that suggest higher risk. Things that can cause a poor business credit score include:

• County Court Judgments (CCJs) registered against the business or director

• Late or missed payments to lenders or suppliers

• High credit utilisation across existing facilities

• Filing accounts late at Companies House

• A short trading history with little credit data

• Dissolved or previously insolvent business associations linked to a director

These issues can affect your chances of getting a business credit card because lenders use them to judge how likely the business is to repay on time. Recent or unresolved issues usually carry more weight than older problems that have since been settled.

Can you get a business credit card with bad credit?

You can get a business credit card with bad credit, but it’s worth being realistic about what that means in practice. The UK business credit card market is smaller and less differentiated than the consumer credit card market. There is no real equivalent of a secured credit card designed specifically for businesses with poor credit. What does exist is a small number of fintech lenders who consider other factors than just your credit score. If your business is generating consistent turnover, some of these lenders may approve you even if your credit file has some negative markers.

Which business credit cards are available with bad credit in the UK?

With bad credit, your options are usually narrower than they would be for a business with a strong credit profile. Most providers will still run eligibility checks, and recent issues such as unsatisfied CCJs, missed payments or weak cash flow can make approval harder.

The options below are not guaranteed bad credit business credit cards. They are providers or routes that may be worth checking because they look at more than just a credit score, or because they already have access to your business account history. The most important thing is to check eligibility first and compare the actual cost offered to your business.

Capital on Tap

Capital on Tap may be an option for some UK limited companies, LLPs and PLCs with imperfect credit, provided the wider business profile is strong enough. It will not be the right option if you or your business have had an unsatisfied CCJ in the last 12 months, so if this is the cause of your bad credit, you may need to look elsewhere. It is not currently available to sole traders. Key points for business owners include:

• Available to eligible UK limited companies, LLPs and PLCs

• Business must be active on Companies House

• No unsatisfied CCJs against the applicant or business in the last 12 months can be present 

• Credit limits of up to £250,000, depending on eligibility

• Rates advertised from 13.86% APR variable, although the rate offered depends on your business profile

Funding Circle

Funding Circle offers two credit card products for eligible businesses:

• Funding Circle Cashback business credit card: This works more like a traditional business credit card. It offers 2% cashback for the first 6 months, then 1% cashback from thereon. Rates start from 14.9% per year, with a representative 34.9% APR variable.

• Funding Circle FlexiPay: This is a business line of credit. It lets eligible limited companies pay upfront and then spread the cost over 1, 3, 6, 9 or 12 instalments. It is advertised with no interest, but flat fees apply from 1.99% per use.

Neither product should be treated as a guaranteed option for businesses with bad credit. Approval still depends on eligibility, affordability, trading performance and Funding Circle’s assessment. The main difference is that the Cashback card charges APR if you carry a balance, while FlexiPay uses flat fees when you spread payments.

Your existing bank

If you already have a business current account, it may be worth checking whether your bank can offer a business credit card. Your bank can see your account conduct, revenue and cash flow, which may help it assess your business beyond the credit score alone.

High street banks can still be cautious where there is bad credit, particularly if issues are recent or unresolved. Before applying, ask whether they can run an eligibility check and whether it will affect your credit file. If your score is already weak, avoiding unnecessary hard searches is important.

What does a business credit card with bad credit actually cost?

The cost of a business credit card depends on how you use it. If you clear the balance in full every month, you may not pay interest at all. In that case, the card may be useful for managing expenses, separating business and personal spending, or improving cash flow between supplier payments and customer income.

If you carry a balance, the cost becomes more important. Businesses with weaker credit are more likely to be offered higher rates, lower limits or stricter repayment terms. The lowest advertised APR may only be available to stronger applicants, so you should always check the rate actually offered to your business. The table below gives a more realistic way to compare the main types of option.

The APR rates assume you carry a balance. If you clear your balance in full each month, you pay no interest at all, regardless of your credit score.

What lenders look at when you have bad credit

Even if your credit score is poor, there are things lenders weigh alongside it. Understanding what they consider can help you put your best case forward.

• Business revenue: Consistent monthly turnover is one of the strongest signals for fintech lenders. If your business is bringing in regular income, that can offset some concern about historical credit issues.

• Trading history: The longer your business has been trading, the more data lenders have to assess. A business that has been trading for two or more years with a clean recent payment record may be viewed more favourably than the credit score alone suggests.

• Type of credit issue: There is a difference between a business that has been through a rough patch but has stabilised, and one that is still struggling. Lenders may be more willing to work with the former. A single missed payment is treated differently from a CCJ or insolvency event.

• Business structure: Limited companies have a separate credit identity from their directors, which can be an advantage. Sole traders have no separation, so their personal credit position is the business credit position.

What happens if a business credit card is not the right option?

If your credit history means you cannot access a business credit card, or if the rates on offer make it too expensive, there are other ways to access finance. We work with a panel of 130+ lenders across the UK and can help you find a product that fits your current situation. Here are some common options for businesses with bad credit:

Invoice finance

If your business has outstanding invoices, invoice finance lets you unlock cash tied up in unpaid bills, often within 24 to 48 hours. Your credit score matters less here because the invoices themselves act as security. This can be a good fit for businesses with a steady B2B customer base but a patchy credit history.

Merchant cash advance

A merchant cash advance is repaid as a fixed percentage of your daily card takings, making it a flexible option if your income fluctuates. Because repayments are linked to revenue rather than a fixed monthly amount, eligibility is based more on card sales volume than credit score.

Asset finance

If you need to purchase equipment or machinery, asset finance uses the asset itself as security. This reduces lender risk, which can mean approval is possible even with a lower credit score.

Revenue-based financing

Revenue-based financing lets you borrow against your future revenue and repay as a percentage of monthly income. It is increasingly available to UK businesses through alternative lenders and can work well for businesses with predictable revenue but poor credit.

You can check your eligibility free with Capitalise and see which lenders on our panel are likely to approve your business, without affecting your credit score.

How to improve your business credit score if you have bad credit

If a business credit card is not accessible right now, the good news is that your credit score is not fixed. Consistent financial behaviour over 6 to 12 months can make a meaningful difference. Steps you can take now include:

• Pay everything on time. Payment history is one of the largest factors in your business credit score. Set up direct debits for any credit agreements, supplier accounts, and business bills.

• File accounts on time at Companies House. Late filing is a signal of financial stress to credit reference agencies, even if your underlying finances are fine.

• Check your credit file for errors. Incorrect entries, outdated addresses, or payments incorrectly marked as late can all drag your score down. You can check your Experian business credit score through your Capitalise account.

• Reduce credit utilisation. If you have existing credit facilities, aim to use less than 30% of the available limit.

• Avoid multiple applications in a short period. Each hard search stays on your credit file for up to a year. Use soft search eligibility checkers first.

• Address any CCJs quickly. A CCJ settled within one month can be removed from your credit record entirely. Left unsettled, it stays on your file for six years.

• Open a dedicated business bank account. Keeping business and personal finances separate makes it easier for lenders to assess your business on its own merits.

You can also read our article on how to improve your credit score for more tips. It is also worth monitoring your Experian business credit score through your Capitalise account, where you can get alerts when it changes and see what is influencing it. Sign up to check your business credit score for free.

Can I get a business credit card with bad personal credit?

It is possible to get a business credit card with bad personal credit, but it is more difficult. Many providers check both the business and the individual applying, especially when the business is small or a personal guarantee is required. If you run a limited company with strong turnover, reliable cash flow and a better business credit profile, that may help. However, bad personal credit can still affect the decision. If the lender believes the director’s financial position increases the risk of non-payment, they may decline the application or offer less favourable terms.

For sole traders, bad personal credit is usually a bigger barrier because there is no separate company credit profile in the same way. In that case, it may be worth checking eligibility carefully before applying and considering other forms of finance if a card is unlikely to be approved.

Will applying for a business credit card affect my credit score?

A full business credit card application may involve credit searches. Whether these affect your score depends on the provider, the type of search and whether it is made against your personal file, business file or both.

A soft search is usually used for eligibility checking and is not visible to other lenders on your personal credit file. A hard search can be visible and may affect how lenders assess future applications, especially if several searches appear close together. If you have bad credit, use eligibility checkers where available before making a full application. This can help you avoid unnecessary searches and focus on providers more likely to consider your business.

Can a sole trader get a business credit card with bad credit?

A sole trader can get a business credit card from some providers, but the options are more limited if personal credit is poor. Some fintech business credit cards are only available to limited companies, LLPs or PLCs, which means sole traders are excluded regardless of turnover. Where sole traders are eligible, lenders are likely to assess personal credit history closely. Missed payments, defaults, CCJs or high personal borrowing can make approval harder. If you are accepted, the credit limit may be lower or the rate may be higher.

If you are a sole trader and cannot access a suitable business credit card, other options may be more realistic. A small business loan may be worth exploring, depending on how your business earns money. 

What is the difference between a bad business credit score and no credit history?

Bad credit and no credit history are not the same thing. Bad credit usually means there are negative markers on your file, such as missed payments, CCJs, defaults or signs of financial stress. No credit history means there is not enough information for lenders to assess how the business manages credit.

A new business with little credit history may still find it hard to get a business credit card because lenders have limited data to judge risk. However, no credit history may be easier to explain than a record of unresolved debts. In that situation, lenders may look more closely at, bank statements, trading forecasts, revenue and the strength of the business model.

If your business has no credit history, you can start building one by opening a dedicated business bank account, paying suppliers on time, filing accounts promptly and using any credit facilities responsibly. Over time, this gives lenders more evidence to assess.

Is a business credit card a good way to build credit?

A business credit card can help build credit if it is used responsibly. Paying on time, keeping balances low and clearing the card regularly can show lenders that your business can manage credit well. The key is affordability. A card used for planned spending and cleared in full can support better financial control. A card used to cover ongoing cash shortfalls can quickly become expensive and may damage your credit profile if repayments are missed.

If your main goal is to improve your credit score, focus on the basics first: pay every commitment on time, keep company records up to date, reduce reliance on existing credit and monitor your business credit profile. A business credit card can support that process, but it should not be the only strategy.

What to do next if you need a business credit card with bad credit

If you are looking for business finance, we can help you find an option that works best for you. We work with a panel of 130+ lenders across the UK, covering credit cards, unsecured business loans, invoice finance, asset finance, merchant cash advances, and more.