How to get a Business Loan with a Bad Credit Score

Written by: Aleena Aamir

September 21, 2021

Key Take-outs:

  1. Your credit score can influence your ability to get a business loan, many lenders don’t accept anything less than 500 but not Bizcap – we’ve helped customers with a credit score under 100
  2. You can request a credit report for free and get a full rundown of your credit history
  3. Paying bills on time and decreasing your credit utilisation ratio and closing credit cards you no longer use are some ways to improve your credit score
  4. Bizcap assess each application on its own merits, taking into account factors such as revenue history and assets.
  5. We can provide unsecured business loans up to $500,000 and secured business loans up to $1,000,000

 

We understand that you can have a great business, but a bad credit score

Running your own business requires a lot of creativity and some serious ambition.

More often than not, it also requires speedy access to cash.

Whether you need money to seize a must-not-be-missed opportunity, smooth your cashflow or simply manage the day-to-day, being able to get hold of cash – quickly – can simply make or break your business.

A business loan is a great way to get hold of capital to help build your business and keep it motoring forward, but what if you’ve got an adverse credit history?

Can you get a business loan with a bad credit score?

The answer – fortunately – is yes.

While banks will generally turn down credit applications from people with a bad credit score, Bizcap is one of the few lenders in Australia that are happy to help.

What is my business credit score?

Your business credit score is a number usually between 0-1200 that gives a lender an indication of your credit history.

Your credit score is fuelled by data from a wide range of sources, including banks, utility providers and other lenders, and a number of factors, including the number of credit enquiries you’ve made, your repayment history and any infringements – for example, defaults or bankruptcy, affect it.

In years gone by, your credit score was something that was difficult to access, but today that information is freely available. We recommend heading to credit reporting service Equifax to check your credit score.

A score 600 and upwards is generally considered ‘good’, and most lenders won’t look at your application if your credit score is 500 or less.
However, Bizcap will.

How can I repair my credit score?

There are a number of things you can do to repair your credit score, including paying bills on time (direct debits can come in handy here), decreasing your credit utilisation ratio (the amount of credit you’re using in context of the amount you have access to), disputing any errors on file, and closing credit facilities – such as credit cards – that you no longer use.

How to get a business loan with a poor credit score

Of course, repairing your credit score can take time – and the business world often won’t wait. Bizcap is one of the few lenders in Australia that will assist you with a business loan regardless of your credit score – in fact, we’ve been able to help customers with a credit score under 100.

Bizcap doesn’t have a credit score minimum – instead we assess each application on its own merits, taking into account factors such as revenue history and assets.

To be eligible for a business loan with Bizcap you just need $10,000 minimum monthly revenue, have been operating for at least six months and have an active ABN.

We can provide unsecured business loans up to $500,000 and secured business loans up to $1,000,000 – all you need to do is apply online and we can get funds into your account within three hours.

So, if you’ve been put off applying for a business loan because of your poor credit score, give Bizcap a call – you’ll be pleasantly surprised!

 

 

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