Can you get a business loan with bad credit?
Yes, from the lenders that publish an appetite for it, and the list is shorter than the search results suggest. Two online lenders state in writing that they consider a poor credit file, one states in writing that it does not, and the rest decide on your bank statements. Here is who says what, what it costs, and the cheaper route if you own property.
- Bizcap and Max Funding publish that they consider bad credit; OnDeck publishes that it does not
- Bizcap lends from $5,000 to $7.5M with four months of trading and $12,000 a month of revenue, credit file notwithstanding
- Most other online lenders publish no credit policy and decide on your bank statements
- Property equity changes the answer: secured lenders assess the property, not the file
- Expect a higher rate, a shorter term, a director’s guarantee, and to compare total repayment rather than the instalment
WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees, or other loan amounts might result in a different comparison rate. Comparison rates are based on a secured loan of $30,000 over 5 years for vehicle finance and $50,000 over 5 years for equipment finance, as required under the National Credit Code.
Can you get a business loan with bad credit?
Yes, and the honest version of the answer has three parts. A small number of online lenders say in writing that they will consider a poor credit file, and one says in writing that it will not. Most say nothing, assess your last six to twelve months of bank statements, and decide case by case. And if you or the business own property, the file matters much less, because a secured lender is lending against the asset. Which of those three you fit decides the rate you pay far more than the score itself.
Which business lenders consider bad credit?
Checked against each lender's published page on 19 September 2026. Policies change without notice; confirm with the lender or your broker before relying on them. Where a lender does not publish a policy the cell says so.
| Lender | Published credit policy | Loan size | Other published criteria | Notes |
|---|---|---|---|---|
| Bizcap | States it looks beyond bad credit scores and lends to businesses rejected by other lenders; bad credit approvals in as little as 3 hours | $5,000 to $7.5M | Active ABN or ACN; at least 4 months of trading; at least $12,000 monthly revenue | Existing loans are not a bar |
| Max Funding | Publishes that bad credit is considered, alongside new businesses | $3,000 to $1M | Over 18 with an ABN; funding used mostly for business | Response within one hour in business hours |
| OnDeck | Excludes it: requires no major credit issues, meaning no recent bankruptcy, insolvency, debt restructure or tax enforcement action | $10,000 to $300,000 | 12 months in business; $100,000 annual revenue | A clean file is a published condition |
| Prospa, Moula, Capify, Lumi | No bad credit policy published on their product pages | $5,000 to $1M | Turnover and trading-history floors as published | Assessed on bank-statement revenue; a broker knows each lender’s appetite |
| Property-secured lenders (e.g. Funding.com.au) | Assessed on property equity and repayment strategy rather than trading history | $25,000 to $15M | Property security | The usual route when the file is poor but there is equity |
What counts as bad credit to a business lender?
Both files: the business's and each director's. The events that matter are defaults, court judgments, Part IX debt agreements, bankruptcy, and ATO enforcement action; OnDeck names bankruptcy, insolvency, debt restructure and tax enforcement as the exclusions that make a file unacceptable. A low score with no event behind it is a pricing problem. A recent event is an eligibility problem, and the lenders in the first two rows of the table are where it is solved.
What does a bad credit business loan cost?
More, in three ways. The rate is higher, and most lenders quote it only after reading your bank data; Max Funding's published from 1.75% a month on its startup product is a fair guide to where specialist unsecured pricing starts. The term is shorter, often 3 to 12 months at the unsecured lenders, which pushes the annualised cost above the monthly figure. And security is more likely: a director's guarantee is standard, and a poor file makes a deposit or asset security more likely on top. Compare the total amount repaid over the term, not the instalment, and check the establishment fee, which commonly runs 2% to 3.5%.
Is a secured loan the better route?
If you own property, usually. Property-secured lenders such as Funding.com.au assess the equity and the repayment plan rather than trading history or the credit file, lend from $25,000 to $15M, and price well below unsecured bad credit lending. The trade-off is the property itself as security. Equipment and vehicle finance sits in between: the asset is the security, so a poor file is less of a bar than for an unsecured loan. The secured business loans guide covers the options.
How do you improve the odds?
- Pay or settle any default you can, then have the credit file updated; a paid default reads very differently to an unpaid one.
- Put any ATO debt on a payment plan before you apply. Tax enforcement is a named exclusion at OnDeck and a red flag everywhere; a plan in place is not.
- Run all revenue through one business account for six months so the bank-statement read is clean and complete.
- Register for GST and lodge BAS on time; it is independent evidence of turnover.
- Offer security if you have it, and say so up front; it changes which lenders are open to you.
- Apply once, through a broker who knows which lender is currently saying yes to files like yours. Each declined application is another enquiry on the file.
Keep reading
Business finance by situation.
Bad credit business loan FAQs
Can I get a business loan with bad credit in Australia?
Which lenders give business loans to people with bad credit?
What counts as bad credit for a business loan?
How much does a bad credit business loan cost?
Does a bad credit business loan need a personal guarantee?
How can I improve my chances with a poor credit file?
Poor credit file and a business that needs funding?
Answer a few quick questions and a licensed broker partner will tell you which lenders are open to your file today, and whether a secured route would cost less. Free, no obligation, no credit enquiry at this step.