Australia's Money Matchmaker®

Bad Credit Business Loans

Compare your best bad credit business loan options from over 60 lenders in 60 seconds.

Australia's Money Matchmaker matching you with your best loans across multiple lenders
My matching process checks multiple lender rates at once, making it super fast to shop around.

Why use Money Matchmaker® to find your business loan

Money Matchmaker puts you in control of your loan choices

No obligations, just the facts, make an informed choice

Money Matchmaker saves you time looking for your loan

Get matched with real loan offers from over 60 lenders

Money Matchmaker shows you personal loan rates unique to you

The rates are based on who you are and where your business is at









What are Bad Credit Business Loans?

Written by

Shaun McGowan

Bad credit business loans allow businesses in Australia to access cash that may not be available through other forms of finance.

In summary

  • Gives a borrower fast access to cash
  • Is often only assessed on the cash flow strength of a business
  • Will likely have higher interest rates and fees than other forms of business finance
  • May not require any collateral or security
  • Can be obtained from banks, non-bank lenders and through finance brokers
  • May require a personal guarantee from the director of the business
Why businesses seek finance

Key Features

  • Borrow from $5,000 to $500,000
  • Fixed or variable interest rates
  • Repayments to suit your budget
  • Terms from one month to five years
  • Secured & unsecured options
Pay off your defaults to improve your credit rating

Who is eligible?

  • Own a business and have an ABN
  • Business is GST-registered
  • Permanent Citizenship or Residency
  • Minimum business-operating time of six months
  • Can provide business bank statements
Minimum requirements for a business loan

Shopping around

Shopping around for the right loan can save you thousands of dollars in interest and fees.

Shop around for a personal loan and save thousands with Money Matchmaker

How do Bad Credit Business Loans work?

Bad credit business loans are a type of short-term business finance designed for businesses (and business owners) with a poor credit score or a history of defaults or dishonours. A bad credit history presents a greater risk to lenders, so interest rates will often be higher than other forms of finance.

A bad credit business loan in Australia is similar to an unsecured business loan — lenders will generally look at the credit history and revenue of the business to determine whether it is eligible for a loan. They can provide access to funds when a business is unable to obtain finance approval elsewhere.

If you are approved:

  • A lender will provide you with access to funds.
  • You will have immediate ownership of anything purchased.
  • You will make regular repayments to the lender for a fixed period of time.

Need fast access to finance or a one-time credit facility?

Find the best rate on an a bad credit business loan


Ex-bankrupt Business Loan?

Some lenders will consider applicants that have been recently discharged from bankruptcy, usually for a minimum of six months. There will be fewer lenders to choose from, and you should expect higher interest rates and fees reflective of the increased risk to the lender.

You may also need to supply collateral, or be asked to include a guarantor on your loan.

Before you apply for a loan following bankruptcy, consider:

  • How your assets and income have been affected by bankruptcy
  • Can you show lenders that you are able to meet your repayments?
  • What will your repayments be and how will they work with your budget?
  • Are there any other finance options available to you?

The approval process for bad credit business loans is similar to other types of small business loans, but puts greater focus on your ability to prove you can repay your loan and how the money will benefit your business.

To increase your chances of approval, you should prepare a business plan to illustrate:

  • How you intend to use the funds to grow or support the business
  • Financial projections for the business following funding use
  • Details of business expenditure and how you plan to successfully repay the loan

Best Bad Credit Business Loan rates

Interest rates on bad credit business loans can range anywhere from 15% to 35%. The actual rate applied to your loan will be dependent on a number of factors, including:

  • The trading history of the business
  • The reputation of the business with suppliers and customers
  • The credit history of the business
  • The length of the loan period
  • The value of any deposits or security — if any — used on the loan
How lenders determine interest rates

The amount a lender will approve for a bad credit business loan will greatly depend on how much your business can afford to borrow. Depending on your risk profile and your capacity to service your repayments, you may be able to borrow between $5,000 and $150,000.

This can be a good way of improving your credit score and building trust with a lender. For example:

  • Your business wants to borrow $50,000
  • A lender may only be comfortable approving a $20,000 loan
  • You show that you are capable of repaying the $20,000 loan
  • The lender may increase the amount of available credit for future loans at a lower interest rate.

Most lenders will offer a bad credit business loan for a term of 1 - 12 months. The shorter terms compared to other forms of business finance are due to the increased risk presented to the lender. aims to clear up the confusion around rates and approval, so we can provide the best consumer experience possible. We only show you real, personalised rates from lenders who can give you approval on the loan. No hidden fees, no inflated rates, no stress, and no impact on your credit score.

Just real rates, from real lenders, who you can apply with immediately to get real deals. (Yes, really!)

Find the best rate on an a bad credit business loan


How to qualify and apply

Bad credit business loans are generally used by individuals who have either defaulted on a previous loan or have some negative history on their credit file.

They can also be used by the director of a business when personal or business assets are tied up due to court proceedings — such as divorce — or if the director has a poor individual credit score.

How to qualify for a loan in Australia

In Australia, this type of business finance is often used by:

  • Ex-bankrupts
  • Business directors involved in a Part IX agreement
  • Business directors with a poor individual credit score
  • Businesses where assets are tied up in court proceedings or cannot be accessed
  • Businesses where there is uncertainty over the ability to repay the loan

The qualifying criteria are similar to an unsecured business loan. Most lenders will be able to provide options if you have:

  • Been trading for at least 12 months; and
  • Have an ABN (Australian Business Number); and
  • Are registered for GST.

However, you can still apply if you:

  • Are self-employed
  • Are a sole trader
  • Have been trading for between 6 - 12 months

As this type of finance presents a high level of risk to a lender, they will often require more extensive documentation to assess your application.

Here’s what you may need to provide to a lender when applying:

  • Proof of identity
  • An ABN and GST registration
  • An acceptable credit rating — the lender will ask to conduct a credit check
  • Business bank statements
  • Trust Deed if the business is held in a trust
  • Australian Tax Office (ATO) Portal access
  • Financial records (provided by your accountant) including Profit and Loss Statements and Balance Sheets
  • Details of the asset you wish to purchase
Australia's Money Matchmaker matching you with your best loans across multiple lenders
Bad credit business loans are generally used by individuals who have either defaulted on a previous loan or have some negative history on their credit file. They can also be used by the director of a business when personal or business assets are tied up due to court proceedings — such as divorce — or if the director has a poor individual credit score.

Business Loans Calculator

See my repayments



Loan Amount: --

Establishment Fee: --

Total Interest Paid: --

Ready for the next step?

Get free loan offers. Using technology Money Matchmaker® matches you to the lowest rates you qualify for from a pool of lenders.

Get matched

left arrow
Floating Robot






Here are the most popular bad credit business loan questions people are asking:

Yes. However, there are different lenders who will consider your application and assess it under their individual criteria. For example, your bank may not approve a bad credit business loan based on the risk you present as a borrower, but a specialist subprime lender may approve your application based on the strength of your current business revenue alone.

No. In most cases, a deposit will help you get a better interest rate, and offering security — such as your personal assets — on the loan may also provide a better rate. As approval for a bad credit business loan is determined by the current cash flow of the business, you won’t be required to put down a deposit if you’re willing to accept higher interest rates or fees.

Yes. Bad credit business loans can be used for any genuine business purpose, including the purchase of new business assets to replace your existing ones.

Interest rates will typically be higher for bad credit business loans than other forms of business finance. Unless you are able to provide collateral on the loan as security, you will likely be offered interest rates in the same area as an unsecured business loan.

Fees for a bad credit business loan will vary from lender to lender. You may be charged an initial set-up fee, monthly admin fees, and more. Each lender will have different rates and fees, so it’s important to compare which is most suitable for your business and will match your ability to repay the loan.

Yes. It’s highly likely you can repay your bad credit business loan early, though you should carefully read the fine print of your loan agreement to determine if there will be any extra payment charges or penalties. If there are, then it may be detrimental to your business finances to repay the loan earlier than stated.

About the Author

Shaun McGowan from



Shaun McGowan

Shaun is the founder of and is determined to help people pay as little as possible for financial products. Through education and building world class technology. Previously Shaun co-founded and Lend.