If you need a new gas or electricity contract for your company but are worried that your commercial credit history might get in the way, you’re in the right place. Here you’ll learn how bad credit business energy works, how to secure a contract even with a low score, and why you should choose Money Helpdesk to guide you through the process.
Can I get business energy with bad credit?
Yes, it is entirely possible to secure business energy contracts even if your company has a less-than-perfect credit score. While many mainstream suppliers may see a low credit score as an increased risk of non-payment, there are specialist providers and specific arrangements designed to help businesses in this situation.
Similar to "bad credit mortgages," these energy deals may come with different terms - such as security deposits or slightly higher unit rates - but they ensure your business stays powered while you work on rebuilding your credit profile.
How bad credit affects business energy
When you apply for a business energy contract, suppliers perform a commercial credit check. If your business has a lower score, the impact typically manifests in the following ways:
-
Security Deposits: A supplier may ask for an upfront payment (security deposit) as a safety net in case of future payment defaults.
-
Risk Premiums: To offset the perceived risk, a supplier might apply a "risk premium" to your unit rates, meaning you pay slightly more per kWh than a business with a "clean" credit history.
-
Limited Tariff Choice: You may find that some suppliers decline your application outright, leaving you with a smaller pool of potential providers.
-
Payment Terms: You might be required to pay via Direct Debit or, in some cases, via a prepayment meter.
How our energy advisers can help
Navigating the energy market with bad credit can be frustrating, but you don't have to do it alone. The experienced business energy advisers we work with specialise in finding solutions for "hard-to-place" businesses.
1. Whole-of-market comparison
Rather than you calling every supplier individually, our advisers perform a whole-of-market comparison. They know which suppliers are more flexible regarding credit scores and which ones are currently offering the most competitive "risk-adjusted" rates.
2. Negotiating exclusive deals
Skilled brokers often have direct relationships with account managers at major and specialist energy firms. They can negotiate bespoke terms or discounted rates that aren't advertised publicly, potentially saving you from high "out-of-contract" rates.
3. Managing security deposits
If a supplier requests an unreasonably high security deposit, an adviser can often negotiate this down or find an alternative supplier who may accept a different form of guarantee.
4. Free "Energy Health Check"
Before you commit to a deal, our advisers provide a free health check with no obligation to proceed to a full audit. They will review your current usage and credit standing to determine the best path forward for your business.
Get independent business energy advice
Which suppliers will offer energy contracts to firms with bad credit?
Most "Big Six" or major suppliers (like British Gas, E.ON Next, and EDF) have strict automated credit scoring systems. If your business falls below a certain threshold - often a score of 50 out of 100 - their systems may automatically reject your application.
However, the market has evolved to include specialist "challenger" suppliers who are more flexible. These providers often look beyond just the credit score, considering your industry, trading history, and payment method.
1. Specialist & Flexible Suppliers
-
Valda Energy: Known for their SmartChoice tariff, Valda specifically caters to SMEs that have been declined elsewhere. They often use smart meter technology to offer "pay-as-you-go" style commercial energy, bypassing the need for a traditional credit check.
-
Jellyfish Energy: They offer specific "No Credit Check" plans across several of their product lines (such as their Blue and Crystal tariffs). While the rates are slightly higher than their credit-cleared counterparts, they provide a guaranteed path to a contract for high-risk firms.
-
United Gas & Power (UGP): UGP is often cited by advisers as being more willing to review cases manually. They may accept a business with a lower score if a security deposit is provided.
2. The "Green" Alternatives
-
Ecotricity:While they do run credit checks (typically via Equifax), they are often open to dialogue. If a business fails the initial check, Ecotricity may still offer a supply if the customer agrees to pay by Direct Debit or provides a deposit.
3. Deemed Contract Suppliers
If you move into a new premises and haven't signed a deal, the incumbent supplier (the one already supplying the building) must provide you with energy. This is called a Deemed Contract.
-
The Catch: You cannot be refused supply under these terms, but you will pay the supplier's highest possible rates. This is a temporary solution only; our advisers use this time to negotiate a move from a "Deemed" rate to a formal, cheaper contract with a specialist provider.
4. Sector-Specific Specialists
Some suppliers specialise in "high-risk" sectors rather than just "bad credit" scores. For example, if you run a pub, restaurant, or takeaway - sectors that many mainstream suppliers currently avoid due to high insolvency rates - certain niche providers are more likely to offer you a contract based on your specific business model.
Pro Tip: Don't apply to multiple suppliers at once. Every time a supplier runs a "hard" credit check and rejects you, it can further lower your business credit score. Consult an adviser first to identify which of these suppliers is most likely to say "yes" before the search is officially logged.
Tips to secure energy with a low credit score
To increase the likelihood of approval and secure better rates, consider the following steps:
-
Check Your Commercial Credit Report: Just like personal credit, business reports can contain errors. Ensure your company information is up-to-date and dispute any inaccuracies.
-
Show Stability: If your business has a history of paying other bills on time, provide evidence of this. Consistent payment of rent or previous utility bills can go a long way.
-
Offer a Direct Debit: Suppliers overwhelmingly prefer Direct Debit payments as they are more reliable. Agreeing to this can sometimes waive the need for a security deposit.
-
Submit Regular Meter Readings: Ensure your billing is based on "Actual" usage rather than estimates. This prevents unexpected large bills that could strain your cash flow and further impact your credit.
Why choose Money Helpdesk for your business energy?
Businesses across the UK use Money Helpdesk to manage their energy procurement because we simplify a complex process:
-
Access to specialists: Connect with advisers who understand the nuances of the commercial energy market.
-
Bespoke solutions: We don't believe in "one-size-fits-all." Your quote will be tailored to your industry, usage, and credit circumstances.
-
Switching support: From termination notices to new contract go-lives, our partners manage the entire switching process for you.
-
No obligation: Your first consultation is free, giving you the information you need to make an informed decision without any pressure.
Ready to see your options? Get started here and let our experts find the right energy deal for your business.
FAQs
It depends on your business structure. If you are a Sole Trader or a member of a small Partnership, suppliers will almost certainly check your personal credit file because you are personally liable for the business's debts. For Limited Companies, suppliers primarily look at the commercial credit score, though they may look at directors' credit history if the company is brand new and has no trading footprint.