Check your business credit score at least once a year to catch errors early and understand what lenders see before you apply for finance.
If your score is low, order your full business credit report to identify and resolve defaults or late payments before seeking a new loan.
Build a stronger score by paying on time, keeping credit applications limited and staying on top of any current loan payments.
While awareness of personal credit scores has been rising in Australia, business credit scores – yes, there are credit scores for business – are still woefully ignored by Australian small businesses. Research released by small business lender OnDeck in November 2018, drawn from MYOB's SME Snapshot, found only 7% of small business owners knew their credit score.
Cameron Poolman, CEO of OnDeck, says the issue is awareness.
"I noticed that when the consumer credit scores became available. At that point, I thought small businesses really didn't know it either and it's just something where there just hasn't been the level of awareness in Australia that there has been, for instance, in the US, where FICO is a well-known score that people know."
Cameron Poolman
CEO - OnDeck
At OnDeck, we're trying to build people's awareness.
But what is a business credit score? What do you do if your score is low? And importantly, how do you find out your score?
What is a business credit score?
A business credit score rates how likely your business is to have an adverse credit event, based on the information on your business credit file. The scale depends on the bureau: Equifax's commercial credit risk score, the Equifax Score, runs from -200 to 1,200. That is a different scale from the personal credit score used for individuals, which is calculated from your consumer credit file.
Source: Equifax
How is it different from a personal credit score?
According to Poolman, a business credit score doesn't include the personal information that is used to calculate individual credit scores.
Your company's file will contain:
Company details. Information on structure and current shareholders.
Public record information. This will include any legal matters or action taken against your firm by the Australian Securities and Investments Commission (ASIC).
Personal Property Securities Register (PPSR). Any information the PPSR has concerning your company's possessions will be on your credit file.
"A business credit score has got more of the commercial information, such as registered defaults, potential loan inquiries or any external administration that may be registered against the business, so it's very much the commercial and business attributes of the business," he said.
However, there are some similarities.
"In the same as in the personal space, without any positive credit reporting, it almost accentuates the negative. And so, it is quite difficult to get to build your credit score up again once you've got a negative listing or your score has dropped because you're not getting that positive reporting coming through to increase it," he said.
What impacts a business credit score?
Your business credit score is calculated using the information listed on your company credit file. This information includes:
Credit enquiries. Every application for business credit is recorded on your file. A run of applications to different lenders in a short period counts against you and can lower your score.
Time in operation. A newer business may be deemed riskier than a business that has been incorporated a longer time.
Director information. Court judgements, bankruptcies, defaults, external administration segments that are listed on a director's file.
Personal Property Securities Register (PPSR). Details of any PPSR registrations held on a business are listed in your file.
Company details. This includes the company structure, legal entity name, business address, directors, shareholders and more.
Information on the public record. This can include recorded liens, lawsuits, judgements or delinquent taxes.
Finder survey: Do Australians from different states know their business credit score?
Response
WA
VIC
SA
QLD
NSW
I don't have a business
52.14%
37.89%
55.7%
43.5%
42.67%
No
37.61%
51.58%
36.71%
46.64%
46.53%
Yes
10.26%
10.53%
7.59%
9.87%
10.8%
Source: Finder survey by Pure Profile of 1145 Australians, December 2023 Data for ACT, NT, TAS not shown due to insufficient sample size. Some other states may also be excluded for this reason.
Source: Equifax
What can damage your score?
Business defaults and late or missed payments are some of the main contributing factors to a low score.
"Another way the score could be impacted is just by the quantum of applications for credit that you've made," said Poolman. "So if you are asking for credit from a large quantum of different institutions, that will have a negative impact on your score."
What else do lenders look at when considering you for a loan?
The criteria for business loans, and what information will be considered, varies greatly from lender to lender.
"If it's a secured loan, they're looking at the securities that the person has provided, and that might be over particular assets, it could be the business, or it could be the person's home that they're lending against. What's also important is the cash flow."
"We will look through, in detail, a company's cash flow and determine its ability to service the loan that they're looking to get. Other funders will look at profit and loss statements, balance sheets, tax returns. It's different for different funders."
What should you do if your credit score is low?
Poolman's advice to any business that has a low credit score is to order a copy of their business credit report from a commercial credit bureau.
"Once you get that report, you know if it's a default issue. So if I a supplier has defaulted you, you know who it is, and then you could determine whether you're able to settle that issue and then remove that from your file, which will generally increase your score."
If you've found out your business has been flagged as a credit risk, there are a few things you can do to appear as less of a risk to lenders and improve your business's credit score:
Make payments on time. This is the easiest and most effective way to quickly increase your credit rating.
Stay away from legal problems. Any involvements with the courts will be highlighted on your credit file and will tarnish the image of your company.
Keep in touch with your creditors. If repayments are getting out of hand or you are evaluating your financial situation, keeping your creditors or business loans manager in the loop may help your situation down the track.
Where can you get your credit score?
You need to pay to receive your business credit score directly from a credit reporting bureau, such as Equifax, but OnDeck allows small businesses to receive their credit score for free.
Poolman believes that more and more small businesses will be looking to access their credit score because of its importance when applying for loans.
"I think in time, consumers, as well as small businesses, will become more aware of their credit score because it impacts their ability to access credit."
"We want to be at the forefront of different opportunities to help small businesses. We'd say this is one way of doing it."
The difference between hard and soft pull credit checks
Not all credit checks negatively affect your credit score. Lenders do two kinds of checks before approving or denying a business loan application.
Soft pull inquiries
Individual and business profiles are subjected to soft pull inquiries everyday without being aware of it. Lenders can do a soft pull check for an overall idea of your financial status before pre-approving your application, or credit bureaus can soft pull your file if you request your credit score.
Soft pull inquiries have no impact on your credit score, but may be noted as a file access.
Hard pull inquiries
Hard pull credit inquiries involve an official check of your credit report. When you apply for a car loan, personal loan or home loan and allow a lender to check your credit file, the lender will conduct a hard pull. While soft pull inquiries have zero effect, hard pull checks are listed on your credit file and therefore can affect your credit score.
Every hard pull credit check is listed on your credit report, including which lenders have denied previous applications and how many times you've applied for loans in the past. Too many hard pull inquiries in a short space of time can negatively impact your credit score.
You have to give the lender permission to conduct a hard pull inquiry. Before submitting a loan application, make sure that your business meets all the criteria and has a good chance of being approved. While a hard pull will reflect on your credit report either way, carefully considering your loan options can help avoid adding rejected applications to the list.
Improve cash flow
If your business has a few outstanding invoices, invoice financing can help improve your cash flow and get access to funds you need. It's a type of business loan that is secured by the unpaid invoices and comes with reduced risk, no asset requirements or interest payments.
Compare invoice financing products below.
{"userFilters":[{"componentType":"MULTI-SELECT CHECKBOX","options":{"comparator":"contains","includeAllSelection":false,"defaultMatcher":"ANY","values":["8.95-10","6.95-8.94999","4.95-6.94999","0-4.94999"],"fields":[{"label":"[[FINDER_SCORE_BADGE|9+]] Excellent: 9+","value":"8.95-10","comparator":"range"},{"label":"[[FINDER_SCORE_BADGE|7+]] Great: 7+","value":"6.95-8.94999","comparator":"range"},{"label":"[[FINDER_SCORE_BADGE|5+]] Standard: 5+","value":"4.95-6.94999","comparator":"range"},{"label":"[[FINDER_SCORE_BADGE|0+]] Basic: 0+","value":"0-4.94999","comparator":"range"}]},"dataSelector":{"recordType":"PRODUCT","fieldCode":"FINDER_SCORE.FINDER_SCORE"},"dataType":"NUMBER","label":"Finder Score","queryParameter":"finderScore"},{"dataSelector":{"recordType":"UI_FILTER_COMPONENT","fieldCode":"SPECIAL_OFFERS"},"dataType":"BOOLEAN","label":"Special offers","componentType":"SpecialOffersFilter","config":{"VALUES":"1","fields":[{"value":"exclusive_only","label":"Finder Rewards & exclusives"},{"value":"all_offers_no_rewards","label":"All offers"}]},"options":{"comparator":"eq"},"queryParameter":"special-offers"},{"config":{},"dataSelector":{"recordType":"product","fieldCode":"GENERAL.PROVIDER_ID"},"dataType":"UUID","label":"Provider","order":100},{"config":{"MULTISELECT":true,"VALUES":"$0-10000, $10000-$20000, $20000-$30000, $30000-$40000, $40000-$50000, $50000 and above"},"dataSelector":{"recordType":"product","fieldCode":"TABLE_FILTER.BORROW_AMOUNT"},"dataType":"TEXT","label":"How much do you need to borrow?","order":null},{"config":{"MULTISELECT":true,"VALUES":"Haven\u2019t started yet, 0-6 months, 6-12 months, 1 to 2 years, 2 to 3 years, 3 years+"},"dataSelector":{"recordType":"product","fieldCode":"TABLE_FILTER.BUSINESS_AGE"},"dataType":"TEXT","label":"How old is your business?","order":null},{"config":{"MULTISELECT":true,"VALUES":"$0, $1 - $50000, $50000 - $100000, $100000 - $200000, $200000 - $300000, $300000+"},"dataSelector":{"recordType":"product","fieldCode":"TABLE_FILTER.BUSINESS_REVENUE"},"dataType":"TEXT","label":"How much does your business make per year?","order":null},{"config":{"MULTISELECT":true,"VALUES":"Secured, Unsecured"},"dataSelector":{"recordType":"product","fieldCode":"TABLE_FILTER.LOAN_SECURITY"},"dataType":"TEXT","label":"Loan Security","order":null},{"config":{"MULTISELECT":true,"VALUES":"1 month to 12 months, 1 to 2 years, 2 to 3 years, 3 to 4 years, 5 years and above"},"dataSelector":{"recordType":"product","fieldCode":"TABLE_FILTER.LOAN_TERM"},"dataType":"TEXT","label":"Loan Term","order":null}],"niche":{"currencySymbol":"$","decimalPoint":".","decimalPlaces":"2","thousandsSeparator":",","filterBoundsMap":{"product.GENERAL.PROVIDER_ID":null,"product.TABLE_FILTER.BORROW_AMOUNT":null,"product.TABLE_FILTER.BUSINESS_AGE":null,"product.TABLE_FILTER.BUSINESS_REVENUE":null,"product.TABLE_FILTER.LOAN_SECURITY":null,"product.TABLE_FILTER.LOAN_TERM":null}},"prefilled":false,"experimental":false}
Usually three to six months of active trading and credit activity are required before a bureau can calculate a business credit score. This timeline allows enough data points, such as utility bill payments or credit enquiries, to be collected and analysed by reporting agencies like Equifax or Experian.
Yes, the Australian Taxation Office (ATO) can report tax debts of $100,000 or more to credit reporting bureaus if they are more than 90 days overdue. This policy applies to businesses that have an ABN and are not engaging with the ATO to manage their debt, which can severely impact your ability to borrow.
Yes, most Australian lenders will assess the personal credit reports of all directors when reviewing a business loan application. This is particularly common for small businesses and sole traders where the owner's personal financial habits are viewed as a key indicator of business management risk.
Yes, you have the legal right to request a correction of inaccurate information on your business credit file at no cost by contacting the credit reporting bureau directly. You do not need to pay a third-party credit repair company to fix mistakes like incorrect defaults, duplicate entries or outdated court judgements.
Paying your business electricity, gas and telecommunications accounts on time helps, mainly by keeping defaults off your commercial credit file. It does not build your score through Comprehensive Credit Reporting. CCR and the consumer default listing thresholds sit in the consumer credit reporting provisions of the Privacy Act, and the OAIC says those credit reporting laws generally apply only to the consumer credit information on your credit report, not to commercial credit information. On a commercial file, what moves your score is paying suppliers and trade credit on time, clearing registered defaults and court judgements, and keeping your ASIC and PPSR records accurate. The consumer rules still matter to you personally, because a director's own credit file is usually checked when a personal guarantee is involved.
The free access rules cover your personal consumer credit report, not your business credit file. The OAIC says a credit reporting body must give you access to your consumer credit report for free once every 3 months, and again if you have been refused credit in the past 90 days or your credit information has been corrected. There is no equivalent statutory right for a commercial file. Australia's commercial bureaus, Equifax, Experian and illion, each set their own pricing and access terms, so check with the bureau. Some Australian platforms also offer ongoing monitoring that provides a snapshot of your score and any new enquiries made against your ABN.
Discover more business resources right here on Finder
Elizabeth Barry is an experienced journalist with over 10 years of expertise in personal finance, contributing to outlets like the ABC, Sydney Morning Herald, and 7News. She holds a Master of Arts in Creative Writing and a Bachelor of Arts in Communication from the University of Technology Sydney, and has earned multiple award nominations, including a Highly Commended recognition at the 2017 Lizzies. Elizabeth began her career at Finder in 2013, progressing through roles to become Lead Editor, where she oversaw a wide range of personal finance coverage until 2024.
See full bio
Elizabeth's expertise
Elizabeth
has written
181
Finder guides across topics including:
Looking to purchase new equipment for your business? Find out how you could benefit from a vehicle and equipment loan from St.George. Compare and apply today.
If your business is suffering from poor cash flow, consider one of several cash flow finance options to tide you over while waiting for your invoices to be paid.
Is your business in a cash flow squeeze? Find out how spot factoring can ease your cash flow troubles in as little as 24 hours, even if you have no collateral.
There's a range of options available for you to finance purchases for your small business, so find out how best to pay for assets under $20,000.
Important information about this website
Finder is a comparison service. We do not compare every product or every provider in the market.
We make money through commercial arrangements with some of the providers on this site. Products marked 'Sponsored', 'Promoted', 'Featured' or 'Advertisement' appear as a result of a commercial arrangement.
Our editorial content, product reviews and any 'Top Pick' designations are prepared independently of these commercial arrangements.
The default order of products in our tables can be influenced by commercial arrangements. You can re-sort or filter using the controls above each table.
Some content on this site may be generated or supported by AI tools. You should verify details directly with the provider.
Finder is one of Australia's leading comparison websites. We are committed to our readers and stand by our editorial principles.
Our comparison service does not include every product or every provider in the market. Some product issuers offer their products under multiple brands or through associated companies. Where we can, we identify the underlying issuer so you can compare like with like, but you should always check with the provider directly to confirm which brand you are dealing with.
Finder is a comparison website and an intermediary. We are not a product issuer and we do not provide personal financial or credit advice. When you click a link to a product, or apply for a product through our site, you deal directly with the product issuer. We may receive a referral fee, commission or other payment from the issuer if you click through, apply or take out a product. We describe these arrangements in more detail under 'How we make money' below.
Product features, fees, terms and eligibility criteria are set by the product issuer and may change. We rely on information supplied by issuers when we present product details on our site. Before you apply for or take out any product, you should confirm the details directly with the issuer.
We earn revenue from Finder in four principal ways:
Referral fees and commissions. When you click a product link, complete an enquiry form or apply for a product through our site, we may receive a referral fee, commission or other payment from the product issuer. We may also receive payment based on the volume of leads or conversions we send to an issuer.
Sponsored placements. Products marked 'Sponsored', 'Promoted', 'Featured' or 'Advertisement' appear as a result of a commercial arrangement between Finder and the issuer. These labels always indicate a paid placement. We do not use them for editorial choices.
Display advertising. Banner advertising, newsletter advertising and similar display ads on our site are paid by advertisers.
Content sponsorship. Some articles, videos and social media posts are sponsored by an issuer and are clearly labelled as such.
Our editorial opinions, product reviews and any 'Top Pick' designations are prepared independently of these commercial arrangements. A 'Top Pick' is an editorial choice made by our writers and editors based on the criteria described on each comparison page. A 'Top Pick' is not a personal recommendation and does not mean the product is appropriate for your circumstances.
If you would like to know whether we have a commercial arrangement with a specific product issuer, please contact us.
When products are grouped in a table or list, the default order can be influenced by commercial arrangements we have with product issuers. In some categories, sponsored or featured products appear in the top positions of the table by default, and are always labelled as such.
Other factors that influence default order include price, fees and features, and (where relevant) our editorial view of the product.
You can re-sort every comparison table using the controls above the table. You can filter by product features that matter to you. The order you see after re-sorting or filtering is not influenced by commercial arrangements.
Some content on this site is generated or supported by artificial intelligence tools, including our AI-powered assistant FinderBot. AI-generated content may contain errors. Please verify important information directly with the product issuer before making a financial decision. For more information about FinderBot, see the FinderBot Terms of Use and FinderBot Privacy Collection Notice.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
