How to Get a UK Unsecured Loan with a Bad or no Credit History
Finding a business loan in the UK can be challenging—especially if you have bad credit or no credit history. Traditional banks often hesitate to lend to such applicants, but that doesn’t mean your funding journey ends there. Thanks to financial innovators like 24/7 Business Finance, UK SMEs can now access unsecured business loans, even with less-than-perfect credit scores.
In this guide, we’ll break down how you can secure funding without collateral, improve your creditworthiness, and take advantage of flexible loan options available in 2025.
📞 Call us today at 0800 061 4919 to discuss your loan options with a trusted UK business finance expert.
What Is an Unsecured Loan?
An unsecured loan is a type of financing that doesn’t require you to provide any physical assets—like property or vehicles—as collateral. Instead, lenders rely on your business performance, revenue, and repayment history to determine eligibility.
You can learn more about this on our Unsecured Business Loan page.
Why Choose an Unsecured Loan in the UK?
Unsecured loans are increasingly popular among UK SMEs because of their:
- Fast approval times (often within 24–48 hours)
- No need for collateral
- Flexible repayment schedules
- Suitability for small and medium businesses
According to the British Business Bank, more than 45% of UK SMEs now prefer alternative lenders over traditional banks for quicker and easier access to funds.
Bad Credit or No Credit? Here’s What It Means
If you have bad credit, it means you’ve missed payments or have outstanding debts affecting your credit score. On the other hand, no credit history simply means you haven’t borrowed before—so lenders have no record to assess your reliability.
But don’t worry—24/7 Business Finance specialises in helping UK businesses like yours build or rebuild credit while securing working capital.
How to Qualify for an Unsecured Loan with Bad Credit
While traditional banks might decline, alternative lenders like us offer tailored options. Here’s how to improve your chances:
- Provide consistent bank statements showing steady income.
- Register your business and ensure it’s trading actively.
- Be transparent about existing debts or financial challenges.
- Demonstrate repayment ability—we focus on performance, not just your credit score.
Visit our Working Capital Loan page to explore flexible funding designed for everyday business operations.
Key Features of 24/7 Business Finance Unsecured Loans
- Loan Amounts: £5,000 – £500,000
- Term Lengths: 6 months to 5 years
- Eligibility: UK SMEs, startups, and growing businesses
- Approval Time: Often within 24 hours
Discover more about our benefits and how we support UK entrepreneurs.
Why Traditional Banks Often Decline Bad Credit Applications
High street banks rely heavily on credit history and collateral. Without these, they consider lending “high risk.”
This is where alternative finance steps in—companies like 24/7 Business Finance use data-driven insights and flexible underwriting to assess businesses based on potential, not just the past.
Learn more about our services here.
Tips to Improve Your Credit Score Before Applying
Even if you can qualify now, improving your credit score can unlock better rates. Here’s how:
- Always pay suppliers and invoices on time
- Reduce your credit utilisation ratio
- Check your credit report with Experian or Equifax
- Avoid frequent loan applications
How Technology Helps Businesses with Bad Credit Get Approved
In 2025, fintech platforms are using AI-powered risk assessment tools to evaluate applications quickly. This means even businesses with weaker credit profiles can qualify based on real-time data such as cash flow, sales performance, and customer transactions.
Our digital lending solutions are built exactly for that—speed, transparency, and flexibility.
What Documents Do You Need to Apply?
When applying for an unsecured business loan, have the following ready:
- Valid UK ID and business registration
- Last 3–6 months of bank statements
- Business financial records
- VAT certificate (if applicable)
Visit our Contact page to submit your documents securely.
Common Myths About Bad Credit Loans
- Myth: You can’t get approved with bad credit.
Truth: You can—with lenders like 24/7 Business Finance. - Myth: Interest rates are always high.
Truth: Rates depend on revenue, not just your credit score. - Myth: Only large companies qualify.
Truth: We help startups, sole traders, and SMEs too.
Benefits of Choosing 24/7 Business Finance
- Fast approval process
- Flexible repayment options
- No hidden charges
- Personalised loan solutions for every business type
We are a trusted UK finance partner—read more About Us.
How to Apply for a Business Loan Today
Ready to get started? The process is simple:
- Visit www.247businessfinance.com
- Choose your loan type (Unsecured, Start-up, or Working Capital)
- Complete our quick online application
- Get a decision in as little as 24 hours
Or call 0800 061 4919 to talk to our expert advisors today.
Conclusion
Having bad credit or no credit shouldn’t hold your business back. At 24/7 Business Finance, we specialise in giving UK SMEs the chance to grow through fair, flexible, and fast unsecured business loans.
Whether you need funds to manage cash flow, invest in equipment, or expand your operations, we’ll find a solution that fits—no collateral required.
Apply online at www.247businessfinance.com or call us at 0800 061 4919 today.
FAQs
1. Can I get a business loan with bad credit in the UK?
Yes, many alternative lenders like 24/7 Business Finance offer funding based on business performance rather than credit score.
2. How fast can I get approved?
Approval can take as little as 24 hours with the right documents.
3. Do I need to provide collateral?
No, our loans are unsecured, meaning no assets are required.
4. Can startups with no credit history apply?
Absolutely. We offer Start-up Loans for new businesses in the UK.
5. Are there any fees?
We maintain transparent, no-hidden-cost lending. Discuss your loan plan with our team today at 0800 061 4919.
