What Is a CCJ and How Does It Affect Business Loan Eligibility?
Brandon Conway
Business Development Executive · Jul 14, 2024 · 6 min read
A County Court Judgement (CCJ) is a court order for an unpaid debt. It restricts but does not eliminate your access to business finance. The impact depends heavily on whether the CCJ is satisfied, how old it is, and how large the amount involved is.
Ready to compare your options?
Check your eligibility across 100+ UK lenders in 60 seconds.
What a CCJ means for lenders
A CCJ is a formal legal record that you have failed to repay a debt when ordered to. Lenders view it as a significant adverse credit marker. A CCJ remains on the credit file for six years from the date of issue. During this period, many mainstream lenders will automatically decline an application without a human reviewer ever considering the full picture.
Specialist lenders take a more nuanced view. A satisfied CCJ (paid in full), particularly one more than two or three years old and for a small amount, is treated very differently from a recent, large, unsatisfied CCJ. The story behind the CCJ also matters: a dispute that escalated into a judgement due to an administrative error is different from a pattern of unpaid debts.
Your options with a CCJ on your credit file
Asset finance: often the most accessible route. The asset provides security regardless of credit history. Many asset finance lenders have explicit adverse credit products and will fund businesses with CCJs as long as the asset and current trading are strong. Invoice finance: accessible if your customers are creditworthy, even if you are not.
Secured business loans against property: available with CCJs where there is significant equity. The equity compensates the lender for the increased credit risk. Unsecured term loans: harder with a CCJ but not impossible through specialist adverse credit lenders. A broker with specific adverse credit expertise is essential here.
"Satisfying a CCJ before applying makes a material difference to your options. Even if you cannot pay it in full immediately, having a repayment plan in place and the CCJ partially paid shows lenders that you are dealing with it."
- Brandon Conway, Business Development Executive
Frequently Asked Questions
Can I remove a CCJ from my credit file?
A CCJ can be removed (set aside) if it was issued in error or without your knowledge. If satisfied within one calendar month of issue, it can be removed entirely. If satisfied after one month, it remains on the file for six years but is marked as satisfied, which is significantly better for lending purposes.
The bottom line
Spark Finance works with specialist adverse credit lenders who consider applications with CCJs on a case-by-case basis. Start a soft-search eligibility check at apply.sparkfinance.co.uk.
Check your eligibilityAbout the author
Brandon Conway
Business Development Executive
Brandon is a Business Development Executive at Spark Finance with extensive experience placing asset finance and business loans for UK SMEs. He works closely with businesses that have been declined by high street banks, finding specialist lenders suited to adverse credit and complex trading profiles.
