What Counts as Bad Credit in Plant Finance?
Lenders assess credit differently, but the following are the markers that typically cause a mainstream lender to decline and a specialist lender to take over.
| County Court Judgments (CCJs) | Registered by a creditor through the courts. Impact depends heavily on value, age and whether satisfied. A satisfied CCJ under £1,000 from 3+ years ago may have little impact. |
|---|---|
| Defaults | Registered by a lender when you miss payments on a credit agreement. Stay on file for 6 years. Settled defaults are viewed better than open ones. |
| IVAs (Individual Voluntary Arrangements) | A formal agreement to pay creditors a proportion of debts. Significantly limits lender options - most mainstream lenders decline. Completion + 2+ years of clean conduct reopens specialist options. |
| Late Payment Markers | Missed or late payments recorded on credit accounts. 1-2 missed payments within 12 months is relatively common and many lenders can accommodate - a pattern of late payments is more concerning. |
| Low Credit Score | A composite score reflecting overall credit history and conduct. A low score without specific adverse events (thin file, limited history) is different from a score damaged by adverse events - lenders treat these differently. |
| Previous Insolvency | Bankruptcy or company liquidation history. Most lenders will not finance directors who have been personally bankrupt within the past 6 years. Prior company insolvency is assessed on a case-by-case basis. |
Specialist Lenders for Adverse Credit Plant Finance
These lenders actively write adverse credit plant finance as part of their core business - not as an exception. They are more pragmatic, faster to make decisions, and better at understanding the context behind adverse credit history.
| Lender | Rate Range (APR) | What They'll Accept | Min Finance | Notes |
|---|---|---|---|---|
| Time Finance | 8.5 – 18% | CCJs, defaults, IVAs (completed), late payments, recent adverse | £5,000 | Strong track record in adverse plant; fast decision-making; director guarantee required |
| Haydock Finance | 8.0 – 15% | CCJs (satisfied and unsatisfied considered), defaults, older plant, sole traders with adverse | £5,000 | Good for older assets alongside adverse credit; appetite for construction sector specifically |
| Aldermore Bank | 8.0 – 14% | Light to moderate adverse; CCJs under £5,000 considered; declined mainstream | £5,000 | Bridge between mainstream and specialist; faster on light adverse than pure specialists |
| 1pm plc | 9.0 – 18% | CCJs, defaults, DMP (Debt Management Plan); smaller finance amounts; sole traders | £3,000 | Best for smaller plant amounts with adverse; quick turnaround; simpler underwriting |
| White Oak / Bibby | 9.5 – 20% | Adverse, restructuring situations, companies in or recently out of CVA | £5,000 | Will look at more complex situations; useful where other specialists have declined |
| Reward Funding | 10.5 – 22% | Significant adverse, start-ups with adverse director, asset-backed above all | £5,000 | Most expensive but most flexible; genuinely asset-led decision making |
Rates as at October 2026. Indicative only - actual rates depend on credit profile, asset type, deposit and term.
What Affects Approval and Rate With Adverse Credit
The Asset Itself
Adverse credit lenders lean heavily on asset quality. A new or late-used, well-known machine (JCB, Komatsu, Volvo, Manitou) from a reputable dealer with a warranty is far more financeable than an old, obscure or condition-unknown asset. The lender is buying back to collateral security - make it easy for them to value and resell.
Deposit Size
A larger deposit reduces the lender's exposure and is one of the most powerful levers you have. Moving from 10% to 25% deposit can be the difference between approval and decline, and between a 18% rate and a 13% rate with the same lender. If you can stretch the deposit, it pays.
Type and Age of Adverse
A satisfied CCJ from 4 years ago is very different from an active, recent CCJ. Lenders care about trajectory - is the credit picture getting better or worse? Evidence of improvement (no new adverse in 12+ months, good bank account conduct) matters as much as the historical events.
Time Since Adverse Event
Most adverse events fade in importance over time. CCJs and defaults stay on file for 6 years but their weight in a lender's decision reduces significantly after 3 years. If you are approaching the 3-year mark on an adverse event, it may be worth waiting if the project allows.
Director Guarantee
A personal guarantee from the director(s) is almost always required for adverse credit business finance. It puts your personal assets at risk if the business defaults - so this is a significant commitment. However, for the lender, it meaningfully increases confidence in the deal and can unlock approval or a better rate.
Business Bank Account Conduct
Even with adverse on file, good bank account conduct in the 3-6 months before application is highly positive. Lenders want to see regular income, no returned payments, and a balance that comfortably services the proposed payment. Clean recent bank statements can overcome older adverse in many cases.
Can You Get Plant Finance With a CCJ?
The short answer is: in most cases, yes. A County Court Judgment does not automatically disqualify you from plant finance. What matters is the context around it.
Lenders consider: the value of the CCJ (small CCJs under £500 are often largely ignored); whether it is satisfied (paid in full) or still outstanding; how old it is; and whether there are other adverse markers alongside it. A single satisfied CCJ from 2+ years ago, with otherwise clean conduct, will typically not prevent you from accessing finance - though you may not qualify for the very lowest rates.
An active, recent, high-value CCJ (especially multiple CCJs or alongside other adverse) narrows your options significantly. Time Finance, Haydock and Reward Funding are most likely to consider these situations. A larger deposit (25-30%+) and strong asset selection make approval more achievable.
Can a New Business Get Plant Finance With Bad Credit?
This combination - adverse credit history plus no trading track record - is the most challenging scenario. But it is not impossible. Asset-backed lenders (particularly Reward Funding and 1pm) make lending decisions primarily based on the quality of the asset being financed rather than the financial profile of the borrower.
For this approach to work: the asset should be new or very recent, well-known (JCB, Komatsu, Caterpillar), purchased from a reputable dealer, with a warranty or maintenance agreement in place. The lender is essentially saying: if the business fails, we can repossess and sell this asset and recover most of our money. A 30% deposit, clean personal bank account conduct and a letter from a construction company confirming work on the books will all help significantly.
Be realistic about rates - for a start-up with adverse credit, the rate will be at the higher end of the market (18-22%+). Calculate whether the work the plant will generate covers the finance cost and provides a viable return before committing.