Our brokers work hard at understanding our client’s unique circumstances and helping them overcome common home loan challenges. Whether you’re a first home buyer or an experienced investor, we’ll help you find the best home loan for your situation. Whether you’re self-employed or unemployed and have trouble proving your income or you’re a contractor or casual worker, we offer solutions for all types of clients’ income sources.
For most traditional lenders, qualifying for business loans with bad credit history is difficult if not outright impossible. However, due to various circumstances, having less than ideal credit is a problem for many businesses, even those that are successful. It’s for this reason there are lenders who offer business loans for bad credit applicants. If you are looking for a business loan for bad credit, our brokers can help you find the right lender and secure the financing you need. Talk to Break Free Home Loans today to compare lenders and begin your application.
What Are Business Loans For Bad Credit
Can Personal Credit History Impact Getting Business Loans
How To Check Your Credit Score
Your business credit file will include information such as:
- Your company details such as information on company structure or shareholders
- Registered defaults or missed payments
- Potential loan enquiries
- External administration
- Public record information such as legal matters or actions taken against your company
How Much You Can Borrow
How To Get Approved For Business Loans With Bad Credit History
Choose A Smaller Sum
Only borrow what you need. Choosing a smaller sum for your loan amount will make it easier for you to qualify with a lender. Lower borrowing amounts also mean repaying your loan off sooner, with a smaller monthly repayment amount. It’s why it’s important to determine what you need the loan for so you’ll know exactly how much you need to borrow and how much you can afford over how long.
Get Rid Of Outstanding Loans
Things To Take Into Account When Getting Bad Credit Business Finance
How To Improve Credit Score In Melbourne?
Reduce Your Limit
Check For Errors
Paying Bills On Time
Find The Right Lender
What To Use Your Loan For
- To buy new equipment or machinery
- To renovate your premises
- To buy stock or inventory
- To cover the costs of marketing and advertising campaigns
- To expand your business into new markets
- To cover the costs of hiring new staff
- To pay off existing debts or loans
- To finance the construction of a new premises
- To buy a new business vehicle
Alternatives To Bad Credit Business Loans
- Venture capital funding: This is where investors provide funding for your business in exchange for equity. This is investment from firms or individuals who expect a high return on their investment, and is typically only available to businesses with high growth potential.
- Business grants: There are various government and private sector grants available for businesses, although these can be difficult to secure. They are often competitive and subject to eligibility criteria.
- Personal loans: If you have a good personal credit rating, you may be able to take out a personal loan to finance your business.
- Family and friends: You could ask family and friends for financial assistance to start or grow your business.
- Debt crowdfunding: This is where people provide funding for your business in exchange for a share of future profits.
- Bank loans: Banks can be a source of finance for businesses, although they may require security such as property or equipment.
- Hire purchase: This is where you pay for goods or equipment over an agreed period of time, usually with interest.
- Invoice finance: This is where you sell your outstanding invoices to a third party at a discount, in order to release cash that is tied up in them.
How To Choose A Lender For Bad Credit Business Finance
- Look for a lender who specialises in bad credit business loans. There are many lenders out there who specialise in this type of financing.
- Make sure the lender is willing to work with you to create a repayment plan that is feasible for your business.
- Get quotes from multiple lenders so that you can compare interest rates and terms.
- Read reviews of the lender online to see what other businesses have to say about their experience.
- Ask the lender for references of other businesses they have financed.
Have Any Questions?
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Frequently Asked Questions
How To Get A Business Loan In Melbourne If I Have Bad Credit?
What Is The Minimum Score For Getting Bad Credit Business Loans?
- Get a copy of your credit report and check it for errors. If you find any, dispute them with the relevant credit agency.
- Try to improve your credit score by paying off any outstanding debts and making all future repayments on time.
- Shop around for lenders who are willing to consider bad credit applications.
- Consider a secured business loan, where you use an asset as collateral to secure the loan. This may improve your chances of getting approved, but it also means that you could lose your asset if you default on the loan.
In general, the qualifying criteria for bad credit loans are similar to unsecured business loans. Most lenders are able to provide options if you:
- Have been trading for at least 12 months
- Have an ABN/ACN
- Are registered for GST
Lenders can look into your ability to repay their loan value beyond your credit score. They can assess revenue streams, business performance and other liquidity ratios.
Can I Do Business Debt Consolidation Loan Bad Credit?
Yes. A bad credit debt consolidation loan allows businesses with bad credit and overwhelming debt in Australia to consolidate their finances into one easy loan. Instead of paying multiple credit repayments each month, you can simply pay one monthly repayment. This will give your business more financial control and a better ability to pay back its debts. Moreover, bad credit debt consolidation loans may charge you lower interest rates than the combined rates of your current debts. This will give you major savings every month.