Can I Get Invoice Finance With Bad Credit?
Yes, you can get invoice finance in the UK with bad credit, CCJs, defaults or no trading history. Invoice finance is secured against your customers' creditworthiness, not your own credit file, so approval depends on whether your debtors will pay rather than on your personal score. Independent providers are generally more open to businesses with County Court Judgments or a short trading history than high street banks. Advance rates vary by provider: Bibby Financial Services advances up to 85% and Ultimate Finance up to 95%, and neither publishes its service charge, so pricing is quoted per facility.
Why Bad Credit Doesn't Stop You
Unlike a bank loan or overdraft, invoice finance is not primarily based on YOUR credit history. The provider is buying (or lending against) your invoices. Their risk depends on whether your CUSTOMER will pay the invoice - not whether you have a clean credit file.
If you invoice Tesco, the NHS, or a large construction firm, the provider knows those organisations will pay. Your personal credit score is largely irrelevant in that assessment.
Which Providers Accept Bad Credit?
| Provider | Accepts CCJs? | Accepts Startups? | Min Turnover |
|---|---|---|---|
| Ultimate Finance | Yes | Yes - day one | Not published |
| Bibby | Yes | Yes - day one | Not published |
| IGF | Yes | No (over £5m turnover only) | £5m |
| Close Brothers | Case by case | Limited | £750k |
| Aldermore | Unlikely | No | £750k |
What Matters More Than Your Credit Score
- 1.Your customers' creditworthiness - Blue-chip, government, or large corporate customers make approval much easier regardless of your credit.
- 2.Invoice quality - Clean, undisputed invoices for completed work are easier to finance than staged or contested invoices.
- 3.Debtor concentration - Having multiple customers is better than relying on one. Most providers limit exposure to any single debtor at 25-40% of your ledger.
- 4.Industry - Some sectors (recruitment, construction) have well-established factoring markets. Providers understand the risks and are comfortable funding them.
Tips for Getting Approved With Bad Credit
- Apply to specialist independents (Bibby, Ultimate, IGF) first - they are more flexible than banks
- Be upfront about your credit history - providers prefer honesty over surprises during due diligence
- Highlight your strongest customers - this is what the provider is really assessing
- Compare 3+ providers - rates and appetite vary significantly, especially for challenging cases
Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.
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