Bad credit business loans

Your credit history doesn't have to lead you to a dead end. Find the way forward with a bad credit business loan.

We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!

You still have business loan options even if your credit score isn't perfect. Secured business loans, non-bank lenders and invoice factoring can help you get access to funding regardless of your credit score.

Expert overview: The 3 things you should know when getting a business loan with bad credit

  • Lenders consider the financial standing of the business itself as well as its directors, so having bad credit won't necessarily prevent you from getting a loan.
  • Having bad credit makes it more difficult for you to get finance from high street banks, but there are a number of smaller lenders who will consider your application.
  • Bolster your application with a business plan, detailed financials and financial forecasts for the best chance of getting approved.

Bad credit business loans you could apply for

Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
Swoop Finance Business Loan
1 to 20 years
Depending on your loan contract
Apply online and borrow between $1,000 and $100,000,000. Options for good and bad credit borrowers.
Zip Business Loan
6 months to 3 years
No establishment fee
Borrow up to $500,000 with loan terms of up to 3 years. Flexible weekly, fortnightly and monthly repayment options available with no early repayment fees.
Moula Business Loan
1 to 2 years
2% Establishment fee
A loan of up to $250,000 that can be approved and funded within 24 hours. Available to businesses with 6+ months operating history and $5,000+ monthly sales.
Lumi Unsecured Business Loan
3 months to 3 years
2.5% establishment fee
Apply for up to $300,000 from Lumi and benefit from short loan terms, no early repayment fees and once approved receive your funds in just one business day.
ebroker Business Loan
1 month to 30 years
$0 application fee
Small business loans available between $5,000 and $5,000,000. Get access to 70+ non-bank lenders on this independent platform.
Max Funding Unsecured Business Loan
1 month to 1 year
$0 application fee
An unsecured business loan from $3,000 that offers convenient pre-approval and no early repayment fees.
Valiant Finance Business Loan Broker
3 months to 5 years
$0 application fee
A Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 70 lenders. Loans between $5,000 and $1 million are available. Request a call – your loan can be funded in 1 business day.
OnDeck Business Loans
6 months to 2 years
3% of loan amount
Apply for up to $250,000 and receive your approved funds in one business day. Minimum annual turnover of $100,000 and 1 year of trading history required.
Heritage Bank Fully Drawn Business Loan
No maximum amount
1 to 25 years
Application fee is available upon application
Get access to a loan from $20,000 with no maximum limit with Heritage Bank. Loans can be secured by residential and non-residential property and have terms of up to 25 years.
Capify Unsecured Business Loan
3 to 13 months
3% origination fee
An unsecured business loan up to $300,000 for eligible businesses. Businesses operating for a minimum of 6 months and having turnover of at least $10,000 a month can apply.
Octet Trade Finance
1 month to 2 years
Transaction fee 2.5%
Access a line of credit to pay suppliers in over 65 countries. Borrow from $200,000 up to $7 million.
Prospa Business Loan
3 months to 3 years
3% origination fee
Small business loans are available from $5,000 - $300,000 on terms of up to 3 years. At least six months trading history and a monthly turnover from $6,000 is necessary.
ANZ Secured Business Loan
Up to 15 years
Benefit from a low rate when you secure this loan with property and/or business assets. Loans from $10,000 available.
ANZ Unsecured Business Loan
Up to 15 years
Apply for a loan from $10,000 with no security required and benefit from flexible repayment terms.
Westpac Business Loan
1 to 30 years
$0 application fee
Purchase a new vehicle, equipment or support your cash flow with a business finance solution from Westpac.

Compare up to 4 providers

What is "bad credit" and can I still get a business loan?

There's no one definition of bad credit, especially when it comes to business loans. Lenders will generally look at the personal credit histories of company directors, and if the business is established they may also look at the business's credit file and credit score.

If you personally have bad credit, that is, default listings, missed or late payments, multiple credit enquiries or just a low credit score, you may find it difficult to be approved for a business loan. Difficult, but not impossible.

Business loans and your credit score

What's the difference between a personal and business credit file?

Both your personal and business credit file contains information that helps lenders and creditors determine whether they want to do business with you. Your personal credit file also contains information of your commercial undertakings.

  • Personal credit file. This includes your name and other personal information, details of consumer and commercial credit accounts you've held, any negative listings such as defaults or missed payments and information on the public record such as bankruptcies and court judgements. You will also have a personal credit score.
  • Company credit file. Your company's credit file will include the company's structure and its shareholders, the company's credit information including applications and defaults, any business events that are lodged with ASIC or details lodged with the Personal Property Securities Register will be included, as will a company credit score.

How can I get a business loan with bad credit?

Traditional banks may be tough on businesses with bad credit, but alternative financial lenders tend to have more relaxed criteria. You could also apply for a different type of loan or put up business or personal assets as collateral.

Secured bad credit business loans

If you apply using assets as collateral, the lender may be more ready to approve your application. Here are a few things to keep in mind when applying for a secured business loan:

  • Assets such as business equipment, vehicles, property and funds in savings accounts can be used as collateral for a secured business loan.
  • These kinds of loans are generally granted by banks. Terms and conditions differ, so it's a good idea to shop around for the loan that best suits your budget.
  • Since your application is fortified with collateral, you generally benefit from more competitive interest rates and flexible repayment terms.
  • If you can't make your repayments, the lender will sell your assets to cover what you owe.

Alternative lenders

Following the proliferation of small and medium businesses in Australia, there has been a growth in the number of alternative financial lenders offering loans to business owners with less-than-perfect credit or with no security.

Here's why many business owners turn to alternative lenders:

  • They offer a selection of small, short-term loan products.
  • Bad credit history isn't a determining factor, you just need to show that your business has the capacity to repay.
  • Repayments are made over a shorter period, and responsible borrowers can be rewarded with better rates the next time they apply for a loan.
  • Loan terms are tailored to what you can afford.
  • Alternative lenders don't require security for the loan amount.
  • The application is quick, often with same-day approval.

Invoice factoring

If you have outstanding invoices that are locking up your cash flow, you can consider invoice factoring. Invoice factoring involves selling your unpaid invoices for a fee in order to receive the outstanding payments more quickly. This option is becoming increasingly popular amongst business owners because:

  • Bad credit history isn't a factor.
  • No real estate is required as collateral.
  • You have the option to finance some or all of your invoices.
  • You can enter into an ongoing arrangement with the factoring company.
Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
Waddle Invoice Finance
From 1 month
Apply to borrow up to $4 million against your unpaid invoices and receive your approved funds within 48 hours. Note: Only available to incorporated companies.
Timelio Invoice Finance
Up to 4 months
Get up to 100% of the value of your invoices without having to wait for customer payments, and with no minimum turnover or operating history required.
ScotPac Invoice Finance
From 1 year
No set amount
Improve your business cash flow by financing your outstanding invoices. No minimum trading history required, but minimum 12 - month term and $10,000 in invoices.
ScotPac Selective Invoice Finance
1 to 3 months
Finance your unpaid invoices on demand with terms of 1 - 3 months. 95% of invoice is paid upfront, with no minimum trading history required.
Earlypay Invoice Finance
From 1 month
No set amount
Access a revolving line of credit that grows in line with your accounts receivable. Funding available from $50,000 to $15,000,000+.
Octet Invoice Finance
1 month to 2 years
No Set Amount
Convert up to 85% of your company's receivables into cash flow. The value of your receivables need to be worth at least $250,000 to be eligible.
Earlypay Trade Finance
1 month to 15 years
No set amount
Get finance for 100% of your outstanding supplier invoices. Borrow from $20,000 to $15,000,000 with Earlypay.

Compare up to 4 providers

Even with bad credit history, you can get the cash boost your business needs with terms to suit your financial situation.

Bad credit doesn't lock you out of finance in Australia, but it's important to compare your options to find the right type of finance available to your business.

How can I compare my bad credit business loan options?

There are a few options you can consider for your business, but as any business venture is a serious undertaking, it's important to opt for the best one for your needs. Here's how to find it:

  • Flexibility to match your business structure

    Business loans vary in terms of their flexibility, with each of them offering a variety of different repayment terms, loan amounts, top-up options and other features. Make sure you understand what your business needs before you select the type of loan you're applying for. Your cash flow estimates should show when periods of fluctuations should occur, and therefore what type of repayment structure and loan type may suit you best.

  • Loan term

    While banks tend to offer minimum loan terms of one year with standard business loans, alternative lenders have been offering terms as short as three months, giving you a range of terms to choose from. You also have line of credit loans and overdrafts to add into your comparison, which each having no set terms.

  • Eligibility criteria

    Bad credit loans will come with more flexible criteria but you still need to ensure your business meets the minimum criteria that are set. Check for minimum monthly turnover and a minimum operating period for non-startup loans.

  • Features to match your needs

    Deciding what your business needs out of the loan should help when you're comparing your options. If you are a startup, you may be unsure of your cash flow projections and so want the ability to top-up your loan. If you're taking out a loan to buy stock that will be sold in the next six weeks, you will likely not want a loan with terms longer than a year. Consider the purpose of your loan, your business's financials and then compare your options by features that will suit.

Questions we've been asked financing a business with bad credit

Picture: Shutterstock

More guides on Finder

  • Nexo review: Is it safe for high interest returns?

    Nexo is a cryptocurrency lending and borrowing platform that offers high interest rates on cryptocurrencies, stablecoins and fiat. We review the features available and look at how safe your funds would be on the platform.

  • 2021 Kia Sportage Review

    In 2020, the Toyota RAV4, Mazda CX-5 and Nissan X-Trail all outsold the Kia Sportage. That's not to say this is a bad car; in fact, the motoring media reviewed it favourably.

  • AFCA approves $240m in refunds and penalties: Could you be due compensation?

    New data reveals AFCA received a whopping 70,000 complaints in the last year generating millions of dollars worth of refunds to Aussies.

  • Business loans for Centrelink recipients

    Centrelink might block your business idea from taking off, but a variety of finance options including government schemes can help your business succeed.

  • Guarantor Personal Loans

    If you don't quite meet the criteria for a personal loan, applying with a guarantor can help get your application over the line.

  • CarClarity Car Loan

    Find the best car loan for your circumstances with CarClarity. Rates start from just 3.35% p.a. and borrowers can apply for loans from $10,000 to $250,000 for new and used cars.

  • Zip Business Trade Plus

    Zip's Business Trade Plus service allows you to split the cost of your business expenses up to $150K over four4 monthly instalments, without having to pay anything for the first 60 days, for a 3% fee. Find out more here.

  • Zip Business Trade

    Spread the cost of your business purchases and invoice payments over a longer period and keep your cash flow positive with Zip Business Trade. Access $1K to $3K purchasing power for $12 per month.

  • How the budget can help small businesses in 2021

    SPONSORED: Here’s how the 2021 budget could impact for your small business – in real terms.

    Ask an Expert

    You are about to post a question on

    • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
    • is a financial comparison and information service, not a bank or product provider
    • We cannot provide you with personal advice or recommendations
    • Your answer might already be waiting – check previous questions below to see if yours has already been asked

    Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.

    10 Responses

      Default Gravatar
      DesleyJuly 26, 2019

      I have a business loan on my property. I have a for sale contract on it, once I pay out my loan, I will clear $215k. I have only been working for 3 months in my new casual job and 3 years previously in my last job, but I am having trouble on finding someone to give me a credit card. Is there any bank/credit unions that would be flexible to help me? As I need the credit card to help with my move.

      Thank you.

        Avatarfinder Customer Care
        JeniJuly 27, 2019Staff

        Hi Desley,

        Thank you for getting in touch with Finder.

        Sorry to hear about your difficulty in finding a credit card issuer to apply with.

        Since you’ve mentioned that you currently have a business loan, if your loan was with a bank, you may ask them about applying for a credit card. If you are self-employed or working part-time, you may need to provide your accountant’s information and previous Tax Assessments in order to verify your income. You may consider applying for low-income credit cards if your income is in a lower bracket. Otherwise, you may compare from our own top picks credit card.

        Once you’ve chosen a particular card, you can press the ‘Go to site’ button to apply. Please make sure though to read the eligibility criteria, features, and details of the card, as well as the relevant PDS/ T&Cs of the card before making a decision and consider whether the product is right for you. You may use refer to our credit card application tips.

        I hope this helps.

        Thank you and have a wonderful day!


      Default Gravatar
      IanApril 2, 2019

      I owe 57000 to a bank, but i’ve lost my job if i want to get a business loan in the future am i able to

        Avatarfinder Customer Care
        MaiApril 3, 2019Staff

        Hi Ian,

        Thanks for reaching out.

        You can still get business loan even if you have a bad credit however, you may find it difficult to be approved as the lenders will be looking at your credit file and check your credit worthiness.

        The article on this page provides guidelines on how you can go about getling a business loans despite having a bad credit. It also discusses what can be the alternatives in case you gets declined.

        Hope this is helpful.

        Kind Regards,

      Default Gravatar
      TanyaOctober 16, 2018

      I would like someone to talk to about purchasing an existing business

        Avatarfinder Customer Care
        JohnOctober 17, 2018Staff

        Hi Tanya,

        Thank you for leaving a question.

        There are lenders and brokers that can help you buy an established business in Australia. You can use our table to help you find the right broker/lender for you. Once you have chosen a particular provider, you may then click on the “Go to site” or “Enquire now” button and you will be redirected to the provider’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

        Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. Hope this helps!


      Default Gravatar
      MariaAugust 15, 2018

      I want to purchase an existing business. The owner is willing to pay 10% for me to obtain a business loan. The financials show 500k for 2 locations. Will a lender consider this if I am 1 year out of a chapter 7?

        Avatarfinder Customer Care
        JoshuaAugust 26, 2018Staff

        Hi Maria,

        Thanks for getting in touch with finder. I hope all is well with you. :)

        There are different things that a lender assesses when determining your eligibility for a loan. Even if you are one year of out bankruptcy, you might still be able to be approved for a loan provided that you have met other requirements. The bottom line is that if you can prove to the lender that you are able to make repayments then your chance of getting approved will increase.

        Of course, there are things you can do to ensure that you get a loan. For one, if you have a property which you can use as a security, then that would decrease the risk of lending you money. You may also want to present a business plan, detailed financials and financial forecasts to convince even further your lender to give you the funding.

        Aside from asking traditional banks, you may also try other financial lenders who might be more lenient when approving loans.

        I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

        Have a wonderful day!


      Default Gravatar
      KateMay 7, 2018

      I want to purchase an existing business. I have no collateral but my parents have offered to use a property as collateral for me. Will a lender consider this? I have financials for the business for the last 5 years and it turns over 700k pa.

        Default Gravatar
        ArnoldMay 8, 2018

        Hi Kate,

        Thanks for your inquiry

        Yes, there are lenders that will allow you to apply for a business loan with a property as collateral with the owner’s consent. To compare your options, please see our list of secured business loans. On the page is a secured business loans comparison tool you can use to see which lender suits you.

        You can click the name of the lender or the “More info” link to be redirected to our review page and learn more about the lender’s loan offer, rates, and requirements as well as the pros and cons of using their loan service. When you are ready, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

        Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.

        Hope this information helps


    Go to site