What Counts as Bad Credit?
Business adverse credit includes: CCJs (County Court Judgments) against the company or directors; defaults on existing loans, overdrafts or trade credit; late payment history on the business credit file; IVAs or business insolvency events; director disqualification (even historic and expired); and thin credit files with no borrowing history.
Personal credit of directors is also reviewed. Personal CCJs, mortgage arrears, defaults or very high personal debt levels can affect a business application even where the business credit file is clean.
Lenders Who Specialise in Adverse Credit
The specialist adverse-credit asset finance market is smaller but active. DBF works with lenders who specifically underwrite cases with:
- Satisfied CCJs (over 12 months old)
- Defaults over 24 months old
- Prior business insolvency (3+ years ago, director has rebuilt)
- High personal borrowing / overextended directors
These lenders assess the full picture - asset value, current trading, future prospects - rather than applying automated credit scoring.
What DBF Can Access
By being whole-of-market, DBF can submit adverse credit cases to lenders mainstream brokers and direct lenders simply do not offer. We package the case carefully - explaining adverse events, providing trading evidence, and presenting the business in its best light. Our relationships mean lenders engage with DBF's adverse submissions more readily than cold applications.
CCJ Business Finances £40k Packaging Machine
Business: Food packaging company, 6 years trading, £800k turnover Challenge: Director had personal CCJ (£8k, 18 months old, satisfied) Asset: Harpak-ULMA flow wrapper, new, £40,000 Mainstream lenders: 4 declines DBF solution: Specialist adverse-credit funder, HP over 48 months at 11.5% Monthly payment: £1,050 Conditions: 20% deposit, director PG, satisfactory trading accounts