Can I get invoice finance with a CCJ against my company?

Yes. Many independent providers including Bibby, Ultimate Finance, and IGF accept businesses with County Court Judgements. The CCJ may affect pricing - expect slightly higher fees - but it will not automatically prevent approval. Be upfront about the CCJ during your application; providers prefer transparency.

Can I get invoice finance if I owe HMRC?

Yes, in many cases. If you have a Time to Pay arrangement with HMRC and are meeting the agreed payments, most independent providers will consider your application. If you have unresolved HMRC debt with no payment plan, it is harder but not impossible. Some turnaround specialists handle exactly this situation.

Will invoice finance help me pay off existing debt?

It can. By unlocking cash tied up in unpaid invoices, invoice finance improves your working capital. You can use that cash however you need - including paying down HMRC arrears, settling supplier debts, or clearing overdraft balances. However, invoice finance is not a loan and should not be used solely as a debt consolidation tool.

Can I get invoice finance if my company is insolvent?

This is significantly harder. If your company is technically insolvent (liabilities exceed assets), most mainstream providers will decline. However, some specialist turnaround factors and insolvency practitioners work together to provide invoice finance as part of a wider rescue plan. Seek professional advice from a licensed insolvency practitioner if your company may be insolvent.

Invoice Finance for a Company in Debt - Yes, It Can Still Work

Yes, companies in debt can access invoice finance.

Invoice finance providers assess your customers' ability to pay, not your company's balance sheet. Businesses with CCJs, HMRC arrears, existing loans, and even loss-making positions can qualify - provided they have B2B invoices from creditworthy customers. Specialist providers like Bibby, Ultimate Finance, and IGF handle challenging cases daily.

Quick Reference

Direct Answer

Companies in debt can get invoice finance because providers assess the creditworthiness of the business's customers, not the business itself. CCJs, HMRC arrears, and existing debt do not automatically disqualify a company. Specialist independent providers handle turnaround situations. Advance rates may be lower and fees higher than for debt-free businesses.

Summary

Invoice finance is asset-based lending secured against trade receivables. The provider's risk depends on whether the end customers will pay their invoices, not on the financial health of the borrowing company. This makes it uniquely accessible to distressed businesses. UK providers that specialise in challenging cases include Bibby Financial Services, Ultimate Finance, IGF, and specialist turnaround factors. HMRC Time to Pay arrangements are generally accepted. Technical insolvency is the main barrier - most providers will not fund a company that may enter administration.

This Page Covers

Whether companies with existing debt, CCJs, or HMRC arrears can access invoice finance

Not Covered Here

Formal insolvency procedures (not covered), bad credit scoring detail (see /questions/can-i-get-invoice-finance-with-bad-credit/), bank alternatives (see /questions/invoice-finance-when-bank-says-no/)

Why Debt Does Not Automatically Disqualify You

When a bank considers a loan or overdraft, they look at your company - your accounts, your profit and loss, your balance sheet, your credit history. A company in debt looks risky from this perspective.

Invoice finance works on a fundamentally different model. The provider is not lending to your company based on your financial strength. They are advancing money against invoices that your customers owe you. If your customer is Tesco, the NHS, or a well-established construction firm, the provider knows that invoice will be paid regardless of your company's financial position. Your debt is your problem. Your customer's creditworthiness is theirs.

CCJs and County Court Judgements

A CCJ against your company tells the provider that someone has taken you to court over an unpaid debt. This is concerning but not fatal. Independent providers like Bibby, Ultimate Finance, and IGF accept businesses with CCJs as a matter of routine. They will want to understand the circumstances - a disputed invoice that went to court is very different from a pattern of non-payment to multiple suppliers.

Expect higher fees if you have CCJs. The provider is pricing the additional risk - not just the risk of your customers not paying, but the risk that your business may fail during the facility. A typical premium is 0.25-0.5% on the service charge compared to a clean application.

HMRC Arrears and Tax Debt

HMRC debt is one of the most common issues providers see. VAT arrears, PAYE underpayments, corporation tax shortfalls - these are routine in the SME world, particularly for growing businesses where cash flow lags behind tax liabilities.

The critical question is whether you have a Time to Pay (TTP) arrangement. If you have agreed a payment plan with HMRC and are meeting the scheduled payments, most independent providers will accept your application. The TTP shows you are managing the situation responsibly.

If you have unresolved HMRC debt with no payment plan - particularly if HMRC has issued a winding-up petition - the situation is more difficult. Some specialist providers will still help, but you should seek professional advice from an accountant or insolvency practitioner alongside any invoice finance application.

Turnaround Situations

Some invoice finance providers specialise in turnaround or rescue situations - companies that are struggling financially but have viable underlying businesses. The pattern is common: a company has good customers, strong order books, and healthy gross margins, but has been caught by a bad debt, a contract dispute, an unexpected cost, or simply growing too fast.

In these situations, invoice finance can be the tool that prevents insolvency. By unlocking cash from unpaid invoices, the business can pay overdue suppliers, settle HMRC arrears, and fund ongoing operations while it recovers. Providers who handle turnaround cases will want a detailed understanding of the business, a credible recovery plan, and strong customer quality.

What Providers Will Check

1.Your customers' credit - This is still the primary factor. Strong end customers override weak company finances.
2.Nature of the debt - A one-off CCJ from a disputed invoice is very different from systematic non-payment of suppliers.
3.HMRC position - Active TTP arrangement is positive. Unresolved debt or winding-up petition is serious.
4.Viability - Is the underlying business viable? Good margins, strong orders, and a clear path to recovery make approval much more likely.
5.Director conduct - Personal CCJs, previous company failures, or disqualifications will be considered alongside the company's own position.

Tips for Applying With Existing Debt

Be completely transparent - disclose all debt, CCJs, and HMRC issues upfront. Providers will find out anyway during due diligence.
Highlight your customer quality - strong debtors are the best counterweight to company-level issues.
Get a TTP with HMRC before applying - this significantly improves your chances.
Apply to independent providers (not banks) - they have far more appetite for challenging cases.
Compare at least 3 providers - appetite and pricing for debt-laden businesses varies enormously.

Oliver Mackman

Director, Market Invoice

Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.

Last reviewed: 13 April 2026