What Credit Score Do You Need for a Business Loan?
There’s no single minimum — it varies by lender. High-street banks (Barclays, Lloyds, NatWest) typically want a personal credit score above 650 and a clean business credit history. Specialist lenders like iwoca and Capify are more flexible, considering businesses from 500 or below.
We compared requirements across seven lenders in our business loans section. The pattern: the lower the rate, the higher the credit score requirement. If your credit score is below 600, Capify and iwoca are your most accessible options — both offer same-day decisions without a hard search on initial enquiry.
For limited companies, lenders assess both your personal credit score and your business credit file separately. A strong personal score partially offsets a thin business credit history — particularly for companies trading under two years.
How Are Business Credit Scores Calculated?
The three main UK credit reference agencies — Experian, Equifax, and TransUnion — each use different scoring scales. Experian business scores run 0–100; Equifax uses 0–700; TransUnion uses 0–710. Lenders may check one or all three.
Key factors in your business credit score: payment history (the biggest driver); credit utilisation (how much of available credit you use); age of credit file; county court judgements (CCJs); and a verified Companies House registration.
CCJs have the most severe impact — even a satisfied CCJ stays on your file for six years. That’s the one to resolve first, before anything else.
How to Check Your Business Credit Score
For your personal credit file (which lenders check alongside your business file): Credit Karma, Experian, and ClearScore all offer free checks. These are soft searches and don’t affect your score.
For your business credit file: Creditsafe and Experian Business both offer business credit reports. A basic report is often free; detailed monitoring costs £10–£30/month.
We recommend checking before applying — errors on business credit files are more common than most business owners realise. We found disputed entries can typically be corrected within 30 days.
How to Improve Your Credit Score Before Applying
If you have 3–6 months before you need the loan, these steps can meaningfully improve your score:
1. Register at Companies House if you’re a limited company — a verified address and director details build your business credit file. 2. Pay all supplier invoices on time — trade credit history is reported and weighted heavily. 3. Reduce credit card utilisation below 30% of your limit before applying.
4. Check for errors on your business credit file — incorrect CCJs or missed payments that aren’t yours can drag your score down. Dispute them directly with the credit agency.
5. Avoid multiple applications in a short window — each hard search leaves a mark on your credit file. Use lenders that offer eligibility checks before a full application. 6. Build a trading history — using a dedicated business account consistently creates a financial record lenders can assess.
Which Lenders Accept Lower Credit Scores?
Capify is the most accessible for adverse credit — it considers all credit profiles, including CCJs and defaults, focusing on trading performance instead.
iwoca considers businesses from 6 months of trading with flexible credit criteria — the decision is based on Open Banking data as well as credit file. We found both accept applications where high-street banks would decline.
High-street banks (Barclays, NatWest, Lloyds) require standard creditworthiness and aren’t the right choice if you have adverse credit. Funding Circle takes a middle path — strong credit history helps, but it makes decisions based on business performance data rather than a hard credit score threshold.
If you’re a sole trader with a CCJ from a supplier dispute three years ago, Capify or iwoca is your realistic starting point.
We tested both application flows — Capify takes around 10 minutes online, with a decision the same day. Applying to a high-street bank first wastes a hard search you can’t get back.
Credit Score FAQs
Does applying for a business loan affect my personal credit score?
A full application triggers a hard search on your personal credit file, which is visible to other lenders for 12 months. Multiple applications in a short period can lower your score. Use lenders that offer eligibility checks (soft searches) before committing — iwoca and Capify both do this.
Can I get a business loan with a CCJ?
Yes, but your options are narrower. Capify and iwoca both consider applications from businesses with CCJs. High-street banks and Funding Circle are less likely to approve. A satisfied CCJ (fully paid) is viewed more favourably than an outstanding one, but it stays on your file for six years either way.
What is a good business credit score in the UK?
It depends on the agency. On Experian Business (0–100), above 80 is considered good. On Equifax (0–700), above 420 is considered good. On TransUnion (0–710), above 604 is considered good. For business loan applications, the personal credit score (which runs 0–999 on Experian) is often equally important.
How long does it take to improve a business credit score?
Small improvements (removing errors, reducing utilisation) can show within 30–60 days. Building a genuine trading history and payment track record takes 6–12 months of consistent behaviour. CCJs remain on your file for six years regardless of whether they’re paid.
How we reviewed this
What we covered. This guide explains how this product type works for UK businesses, drawing on FCA guidance, Bank of England publications, and lender documentation. We do not draw on comparison site summaries or aggregator data.
Data sources. All claims were checked against primary sources in April 2026, including provider websites, FCA guidance, and Bank of England publications. We do not cite comparison site summaries or affiliate aggregator data.
Update cadence. We re-verify this page at least monthly, and whenever a provider changes pricing, eligibility, or terms. The verification date on the page reflects the most recent full review. Some links on this page are affiliate links, see our editorial policy.
Regulatory note. This page is editorial content, not regulated financial advice. Credit products are subject to status and approval. Compare offers directly with providers before you apply.