We are commonly asked whether bridging finance is available to companies with adverse credit.

In this article we’ll explore this topic, with the positive news being that there are many lenders who are flexible around imperfect corporate credit scoring.

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Can I get a bridging loan with bad credit?

Why Credit Ratings are Not the Principle Lending Criteria

For traditional forms of finance such as mortgages, bank loans and credit cards, credit scoring plays an essential part in mapping out patterns of behaviour which may indicate higher risk.

With bridging finance, the lender is principally concerned with the security put up by the borrower, a non-negotiable requirement . Once this is in place, the lender has their own money protected since defaulting on repayments would give the lender right to force the sale of the security, as per the terms of the finance.

Since they are protected, bridging lenders can afford to be less concerned with overall credit history.

Are Credit Scores a Factor at All?

Bridging finance providers will still check the credit ratings of those who apply to borrow from then, as part of a wider risk assessment.

While each organisation will have slightly different practices in place, the basic method would be to use a credit scoring program to investigate recent activity, looking for signs of financial distress, late payment, excessive debt markets or other fiscal mismanagement.

Certain providers would consider this type of finding enough to refuse the bridging, while others would be very happy to offer the finance anyway. This is where a good finance broker such as ourselves can help, by sourcing the best deal for your situation.

Choosing Non-Status Bridging Loans

While it is even possible to get a regular bridging loan with poor credit, another option for those in that situation is to choose a non-status loan.

Non-status bridging finance is the terminology for a loan where the lender is primarily considering the property deal as the impetus for the loan. Although all bridging is effectively non-status it has come to mean a particular type of product that delivers fast funding without the need for credit checks or income verification.

Do You Need Help Finding Bridging Finance Despite a Poor Credit History?

Contact us now for free, immediate assistance sourcing the best deal for your situation. With over 40 years finance experience, and over 50 lenders at our disposal, we are here to help.