When a business receives a County Court Judgment it can be a serious blow, depending on the amount of money that needs to be repaid. However, if reimbursed quickly you can limit the effect it will have on your overall business’s credit score.
Although it can be challenging to find loans that work for you, there are also the option of CCJ loans that take into account the CCJ that your business has received as well as the payment history leading up to this.
Due to us being an experienced mortgage broker, we can match you with over 200 lenders and help you find the ideal financer for the amount that you need to borrow. We have an innovative matching technology that will find you the perfect lender to give you near instant approval. Our FCA approved method will help your business to get the funding that it needs; all you have to do is fill out a simple online form. The beauty of this process is that if you are unsuccessful we will match you up with another lender to find you one that offers you the money that you need as quickly as possible.
What Is A CCJ?
A CCJ, otherwise known as a County Court Judgment, can lead to a number of financial issues in the future. Although there are a number of loans that will allow you to borrow with a CCJ it can be significantly more difficult to attain a loan, as it can suggest to lenders that you and your business are not financially reliable.
A CCJ is a formal letter sent to you from court demanding the payment of money that you owe. Although this is a very serious letter to receive, it does not come without warning. It is usually as a consequence of a number of ignored warning letters, only then the lender will decide to take action through the courts.
If you receive a CCJ and do not pay back the required amount within the first month, this can be attached to your credit score for up to six years. However, if you pay the required amount back within the first month and fully comply with the action taken against you, CCJ loans will not be a mark against your credit score.
A CCJ can have a profound effect on your business as it can often indicate that your company is struggling financially. Although this may not be the case, some lenders may be more hesitant to provide you with a loan if a CCJ is attached to your credit score.
Can You Get A Business Loan With A CCJ?
Yes! You can get a business loan with a CCJ however it can be a challenging feat. There are many lenders out there that will look at your overall credit history rather than just focusing on the CCJ and will lend you the money that your business requires. However, if you are struggling to receive a business loan, there are a number of ways that you can increase your chances of a successful application such as:
- Paying off your CCJ loans immediately
- Comply with rules
- Re-build credit history
- Ensure important information is accurate
Each of the items listed above will help you have the best possible chance at a successful application if handled correctly. The above steps are only a few of the ways that you can go about receiving funding and with more options, such as secure and unsecured loans, you can find a loan type with a repayment method that helps to keep your business afloat and pay off any outstanding debt.
What Impact Can A CCJ Have On Your Business Score?
A credit score is very important to a business, and if not addressed immediately a CCJ can have a terrible effect on your overall credit score. If this is paid off quickly it will not be a permanent mark on your credit score. Although it may cause a slight dip, this will be something that your business can recover from and shows that your business is reliable with its money and overall spending habits. By keeping your business in the green, you are likely to help boost your credit score and appear more appealing to those that are looking to lend money to you. Although the effect can differ depending on the size of the business and the amount owed, it is important to address it as quickly as possible.
Alternatively, if the CCJ loans are not dealt with immediately, this can have a lasting effect on your credit score for up to 6 years prior to receiving it. Therefore, it is important to ensure that your business’s contact information is up to date as a CCJ can go unnoticed otherwise. If your phone lines do not work and there is no address on your website, your business will not be contacted about a CCJ and therefore could face larger financial issues.
To update your information, it is imperative that it is done on your business’s website as well as with HM Revenue and Customs, as this will help to ensure that the government has up to date accurate contact details. If a court judgement then turns up to your business you will know that it is up to date rather than an outstanding order. This information should be changed whenever your company moves office as well as whenever they change a telephone number, in order to avoid a situation such as this.
If your business receives a County Court Judgment it is important to comply as closely as possible and repay all outstanding payments as quickly as possible to reduce the effect it will have on your business, as well as ensuring that your credit score remains intact to create the best financial future for the company. For more information on CCJ loans contact a member of our team today.