Can you get a merchant cash advance with a CCJ?
By Helm, Business Funding Specialists
- A CCJ does not automatically prevent you from getting a merchant cash advance
- Providers prioritise card transaction volume over credit history
- Satisfied CCJs are viewed more favourably than outstanding ones
- Older CCJs (over two years) carry less weight in the assessment
Having a County Court Judgement on your record can feel like a barrier to any kind of business funding. Banks and traditional lenders often reject applications outright if they see a CCJ on your credit file.
Merchant cash advance providers take a different approach. Because the product is secured against future card revenue rather than personal assets, the emphasis shifts from your credit history to your trading performance.
Why CCJs matter less for a merchant cash advance
A merchant cash advance is repaid through a percentage of your daily card transactions. The provider's risk is primarily tied to your card revenue volume and consistency, not your personal credit history.
This means a CCJ, while noted, is not the deciding factor. If your business processes healthy card transactions and has been trading consistently, many providers will still consider your application.
Satisfied vs outstanding CCJs
There is an important distinction between a CCJ that has been satisfied (paid off) and one that remains outstanding.
- A satisfied CCJ shows that the debt has been resolved, which providers view more positively
- An outstanding CCJ raises concerns about ongoing financial difficulties
- CCJs that are more than six years old are removed from your credit file entirely
- CCJs satisfied within one month of the judgement are removed from the register
What providers actually look at
When assessing an application from someone with a CCJ, merchant cash advance providers will look at several factors beyond the judgement itself.
- Your current monthly card transaction volume and consistency
- How long you have been trading since the CCJ was registered
- Whether the CCJ has been satisfied or remains outstanding
- The size of the CCJ relative to your business revenue
- Whether there are multiple CCJs or just one isolated incident
- Your overall business performance and trajectory
How to improve your chances
If you have a CCJ and want to apply for a merchant cash advance, there are several things you can do to strengthen your application.
- Satisfy the CCJ before applying if possible, as this significantly improves your prospects
- Build up a strong track record of consistent card transactions over several months
- Be upfront about the CCJ in your application rather than hoping it will not be noticed
- Provide context about the circumstances that led to the judgement
- Consider applying for a smaller advance initially to build a positive borrowing relationship
When a CCJ might be a problem
While many providers will work with applicants who have a CCJ, there are situations where it could prevent approval.
- Multiple recent outstanding CCJs suggest an ongoing pattern of financial difficulty
- A very large CCJ relative to your business turnover raises risk concerns
- A CCJ registered in the last few months may indicate current instability
- CCJs combined with other serious credit issues like bankruptcy or IVAs
Frequently asked questions
Will a CCJ stop me getting a merchant cash advance?
Not necessarily. Many providers will consider applications from businesses whose directors have a CCJ, provided the business has strong and consistent card revenue.
Do I need to declare the CCJ when applying?
Providers will usually find it during their credit check, so it is better to be upfront about it. Providing context about the circumstances can work in your favour.
How long does a CCJ stay on my record?
A CCJ remains on the Register of Judgements for six years from the date of the judgement. If it is paid within one month, it can be removed from the register.
Is a merchant cash advance the best option if I have a CCJ?
For many businesses with a CCJ, a merchant cash advance is one of the most accessible funding options because approval is based primarily on card revenue rather than credit history.