Yes, you can get a business loan with a CCJ on your file. However, it is important to note that your options may be narrower and depend on how old the CCJ is, how much it was for and whether it’s been paid off.
Mainstream banks tend to be more cautious, but a number of alternative and specialist lenders, including Acceptance lenders, will always consider an application.
What Is a CCJ and How Does It Affect Borrowing ?
A CCJ, or County Court Judgment, is issued by a court when you’ve failed to repay a debt and the person or company you owe it to has taken legal action to recover it.
Once registered, it stays on your credit file for six years and signals to lenders that you’ve previously struggled to keep up with a repayment, which can make them view you as a higher risk.
Does It Matter If the CCJ Is Satisfied or Unsatisfied?
Yes, this makes a significant difference. A satisfied CCJ, meaning the debt has been paid in full, is viewed far more favourably than an unsatisfied one, which shows the debt is still outstanding. Paying a CCJ within one month of the judgment can also mean it’s removed from the public register entirely, which is worth doing wherever possible before you apply for finance.
Loans to limited companies are usually unregulated, so this specific legal requirement doesn’t apply in the same way, although most lenders still run credit checks and ask you to declare existing borrowing regardless.
Does the Size or Age of the CCJ Make a Difference When Getting a Business Loan?
Yes, both matter to most lenders. A small CCJ from several years ago is generally seen as far less of a concern than a large one registered recently, since lenders are mainly trying to judge how likely you are to repay reliably now. As a CCJ gets closer to falling off your file after six years, its impact on new lending decisions tends to reduce.
What Type of Lender Is Most Likely to Approve Me With a CCJ?
Specialist and alternative business lenders are generally more likely to approve an application from a business with a CCJ than mainstream banks, since they’re set up to assess risk on a more individual basis. That said, you should expect higher interest rates, and the lender may ask for security or a personal guarantee to offset the added risk of lending to you.
How Can I Improve My Chances of Approval With a CCJ?
You can improve your chances by settling the CCJ before you apply wherever possible, and being ready to explain the circumstances behind it if a lender asks.
Showing strong, consistent cashflow and a solid trading history and good credit score since the CCJ was registered also helps reassure a lender that it was a one-off rather than part of an ongoing pattern.
It’s also worth comparing lenders directly, since criteria vary considerably, and using a broker who specialises in bad credit business finance can help you find a lender that’s a realistic fit for your circumstances.
See also: Do I Need A Good Credit Score To Get A Business Loan?
Does a Personal CCJ Affect a Business Loan Application?
Yes, a personal CCJ can affect a business loan application, particularly for sole traders, partnerships, or smaller limited companies where lenders often check the director’s personal credit history as well as the business’s own. Even where a CCJ was registered against you personally rather than the business, it can still be taken into account when a lender is deciding whether to approve you, and on what terms.