How to get a UK business loan after bankruptcy
Personal or business bankruptcy is one of the heaviest credit-file events. Mainstream UK SMB lenders decline categorically for 6+ years post-discharge. This guide covers what is genuinely possible afterwards.
Director, BestBusinessLoans
Oliver leads BestBusinessLoans's editorial reviews and methodology. With a background in UK commercial finance, he oversees lender research, rate verification and review independence.
Last reviewed: 26 April 2026
Personal vs business bankruptcy
A bankruptcy on the director's personal credit file affects every UK SMB application that runs a director search. A bankruptcy on the company itself is rarer (companies usually go into administration or liquidation, not bankruptcy in the personal sense). Both flag underwriting; both clear the credit file at 6 years from discharge.
During bankruptcy (undischarged)
Almost no UK SMB lender will engage with an undischarged bankrupt. Trading restrictions apply: under section 11 of the Company Directors Disqualification Act 1986 the bankrupt cannot act as a company director without court permission. The bankruptcy must run its course (usually 12 months) before lender conversations make sense.
After discharge (years 1-3)
Discharge does not remove the bankruptcy from the credit file, it stays for 6 years. Mainstream lenders decline. Specialist post-decline lenders (JPM Capital, Bolton Finance) consider cases on the merits but rate at the top of the band. MCA against strong card flow (Capify) ignores most of the credit file but checks that no active bankruptcy is in force.
After discharge (years 3-6)
Same picture but with stronger trading evidence. By year 4-5 post-discharge with clean trading, some mainstream lenders engage at higher rates.
6 years post-discharge
Bankruptcy drops off the credit file. Mainstream lender criteria treat the applicant as if it never happened. The history may still be raised in commercial-finance underwriting (where the lender does its own diligence beyond the credit file) but is no longer an automatic decline.
What to do during the wait
Build clean trading evidence. Open a UK business bank account in the company name and run trading through it. File accounts on time. Avoid additional credit events. Keep documentation showing the cause of the original bankruptcy and the resolution.
FAQ
Can I be a director while bankrupt?
Not without court permission, under section 11 of the Company Directors Disqualification Act 1986. The court can grant permission in specific cases.
Does asset finance work after bankruptcy?
Sometimes. The asset is the security so the personal credit history matters less. Specialist asset finance lenders may engage post-discharge against a clean asset.
Reviewed by Oliver Mackman, Director. Last reviewed: 2026-04-26.