Best Bad Credit Business Loan Rates - Get Up To $500k
Our system helps you find suitable business loans by connecting you with lenders who focus on your business health, not just your past. Get funded with $5-$500k in as little as 24 hours.
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Our system instantly compares 80+ specialist lenders to find your best deal, maximising your chance of first-time approval.
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If the loan offer suits you, confirm by phone to get approved. Funds can be in your account in as little as 24 hours.
Why Compare Business Loans with Lend?
Our smart technology and expert team save you time, protect your credit score, and find you a great deal on business finance.
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Interest Rate Comparison For Bad Credit Business Finance
Compare rates for bad credit business loans from Australian lenders. Lenders do not pay to appear in our results, so you can confidently review your options. Check your eligibility and personalised rates from our lender panel, then simply click ‘Compare now’ to begin.
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Why Australians Trust Lend
Our powerful system and team of experts help you bypass traditional roadblocks, providing certainty and accelerating your business's financial recovery.
We achieve up to a 75% approval rate for our clients who have a historic, paid default on their credit file.
50,000+
Loans Funded
4.8/5 ⭐️
Excellent on reviews.io
"Lenders often focus on past credit scores, ignoring a business's current health and potential. We use our system to connect you with specialists who see the bigger picture, securing the crucial business loans you need to recover and grow."
Andrew Beckett, Head of Broker and Third Party Distribution
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Enter your desired loan amount to compare lenders ready to fund your business.
Our promise: no credit score impact
Your Guide To Bad Credit Business Finance In Australia
This guide provides a clear roadmap for any Australian business owner to secure financing based on their business's current strength, not its past challenges.
Bad Credit Finance By The Numbers
Understanding the specialist lending market is the first step. Unlike traditional banks, these lenders prioritise your business's current health. Our data shows what is possible when your real performance is the focus.
75%
Approval Rate for Paid Defaults
65%
Approvals with Managed ATO Debt
24-48 Hours
Average Funding Time
$50,000
Average Loan Size
Eligibility: Can Your Business Get Finance?
Specialist lenders use specific benchmarks to assess your application for ABN business loans. Here are the requirements they typically look for.
- Minimum Monthly Revenue: You must show a consistent business turnover of at least $10,000 per month in your recent bank statements.
- Minimum Trading History: Your ABN must have been active for a minimum of 6 months. Some products may require 12+ months.
- Business Structure: You operate as a Sole Trader, Pty Ltd Company, Trust, or Partnership.
- Australian Residency: The primary directors of the business must be Australian Citizens or Permanent Residents.
How Loans For Businesses With Bad Credit Work
A bad credit business loan works on a simple principle: your business's recent and verifiable cash flow is a better predictor of your ability to repay business loans than a past credit issue. Lenders confidently provide these loans because they prioritise their assessment on your last 6 to 12 months of actual business bank statements.
To balance the risk, these loans typically come with higher interest and shorter terms (often 6 to 36 months). This should be viewed as a strategic form of funding for a small business to solve an immediate problem and act as a recovery loan, paving the way to rebuilding your business's credit reputation. Key features of these loans include borrowing amounts from $5,000 to $500,000, flexible repayment schedules, and no upfront asset security requirements in most cases.
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You can use the funds for any legitimate business purpose, such as paying suppliers, covering an unexpected tax bill, or purchasing urgent inventory. The entire application process is designed for speed, removing the mountains of paperwork associated with a traditional bank. By providing digital documents, a decision can often be made in hours, with funds in your account in as little as 24 hours. Successfully managing and repaying this type of loan is one of the most effective ways to demonstrate your renewed creditworthiness, building a new track record of reliability that makes it significantly easier to secure more affordable, traditional financing in the future, including other business loans for bad credit.
Your Key Questions Answered
An initial enquiry should be a 'soft credit check' that does not leave a mark on your credit file. A formal application should only proceed after you have seen an offer and given clear consent.
In most cases, no. The majority of bad credit business loans are unsecured, meaning your application is assessed on your business's cash flow.
You can use the loan for any legitimate business purpose. This includes operational funding, paying suppliers, covering a tax debt, or purchasing stock.
Speed is often critical. For fast business loans, once approved and documents are signed, it is possible for funds to be in your account in as little as 24 hours.
Yes, absolutely. The assessment process is the same as for a company. Lenders will look at your ABN, trading history, and cash flow health.
Pros | Cons | |
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Unsecured FundingFunding based on the strength of your business's cash flow without pledging a specific physical asset. |
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Secured Business LoanYou use a business or personal asset (like property or equipment) as security for the loan |
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Rates You Can Expect For A Bad Credit Business Loan
Your final interest rate for a bad credit business loan is calculated based on your specific business profile, with a fair assessment for this type of finance being between 15% and 50% . These tables show real-world examples of current market rates to help you understand potential costs. An unsecured loan has a higher rate than a secured loan because the lender takes on more risk, but it offers far greater speed and accessibility.
How to Apply for Business Finance
1
Gather Your Key Documents
Be prepared with your ABN, Director's Driver's Licence(s), and at least 6 months of recent business bank statements for these low-documentation loans.
2
Consider Your Application Strategy
You can apply directly to a lender or use a business loan broker. A broker or finance matching platform can perform a multi-lender comparison, increasing your chances of a match without multiple hard credit checks.
3
Submit One Strong Application
A single-application financing approach is best. This submission provides the lender with the core information they need to assess your business's current health. A complete loan application is key.
4
Review Your Offer Carefully
Once an offer is made, a finance specialist will contact you. Take your time to understand the interest rate, fees, and terms of your small business loan for bad credit before proceeding.
What Specialist Lending Partners Prioritise
To a specialist lender, your business's recent, real-world activity tells a far more important story than your historical credit file. These two metrics are what they scrutinise to confidently approve your loan.
Consistent Monthly Revenue
A strong and uninterrupted level of turnover demonstrated over many months is the single most powerful indicator that your business can comfortably manage repayments.
Predictable Cash Flow Stability
Lenders actively seek predictable patterns in your income and expenses, showing your business is stable, well-managed, and less likely to experience unexpected financial distress.
Plan Your Next Steps With Our Calculators
Your In-Depth Questions, Answered
The primary fee, aside from the interest rate, is typically a one-off establishment fee charged by the lender to set up the loan, ranging from 1% to 4% of the loan amount. Some lenders may have a small monthly account-keeping fee. All costs must be presented to you in a clear, upfront quote before you proceed.
The process for these loans is designed to be low-doc. In most cases, you will only need:
- A valid Australian Driver's Licence for all directors.
- Your business ABN.
- Secure digital access to your last 6-12 months of business bank statements.
Repayments are handled via an automatic direct debit from your nominated business bank account on a schedule you agree to upfront (weekly, fortnightly, or monthly).
This is an important detail to discuss with your finance specialist. Many specialist lenders offer flexible terms that allow for early repayment, though some may have a penalty fee. It is crucial to confirm the specific lender's policy before you commit.
Applying directly to one lender means you are assessed only against that lender's criteria. If declined, you must start over, creating another enquiry on your credit history. A broker or matching platform allows a single application to be compared against many lenders, increasing the chance of a suitable match on the first try.
Successfully managing one of these credit rebuilding loans is a powerful way to improve your credit score. Every on-time repayment is reported to credit bureaus, creating a positive repayment history that demonstrates reliability.
A paid default, while still a negative listing, shows a lender you have rectified the issue. An unpaid default is a much larger red flag. You will have far more funding options and a higher chance of approval if your defaults are paid.
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Andrew Beckett is a finance executive with extensive Fintech expertise. As Head of Broker and Third Party Distribution at Lend, he fostered key partnerships, including COG aggregation and CAFBA. With prior sales roles in various fintech and finance companies, Andrew has been instrumental in transforming Australia's financial market, shaping new lending practices in the commercial lending space.
Andrew Beckett, Head of Broker and Third Party Distribution
Phil Druce leads the company’s technology and operations. With 20 years of experience in technology businesses, Phil has consistently driven growth through strategic planning and execution. Since 2016, he has been dedicated to creating technology-driven products and services at Lend, optimising processes, and delivering outstanding client experiences.
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Stories From Successful Bad Credit Business Loans
24-Hour Funding to Overcome a Cash Flow Crisis
Ben, a concreter, faced a crisis when a client's late payment left him needing an urgent $45,000. A paid default and low credit score meant traditional lenders said no. We looked past his credit history and focused on his business, securing the full $45,000 as a 12-month term loan. With funds settled in just 24 hours, he avoided a shutdown and now has a pathway to rebuild his credit and access further funding.
Overcoming a Credit Blemish to Secure Vital Stock
Ajay, owner of a specialist coffee store, needed a $30,000 line of credit to secure better pricing on bulk stock orders. However, a past supplier dispute had damaged his credit file, blocking him from traditional finance. We connected him with a specialist lender who understood the situation and successfully secured the $30,000 facility. This vital funding allows Ajay to manage his inventory strategically, improve margins, and grow his business.
A Strategic Facility for a Business Rebuild
Commercial builder Geoff was unable to secure traditional finance due to a paid default on his file. This was a major roadblock, as he needed a $750,000 facility to service lucrative contracts with A-rated clients. We looked beyond his credit history and instead leveraged the strength of his invoices, securing a combined $500,000 invoice and $250,000 trade facility. This provided the immediate cash flow required to deliver on his projects and begin rebuilding his financial standing from a position of strength.
Why Australia Trusts Lend
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