There are scores of lenders that can offer unsecured business loans to Australian businesses. An unsecured business loan is a loan where you do not have to provide any security (assets) to get the loan.

Each of these lenders will have their own risk appetite and lending criteria, of course, but with so many to choose from there’s a much greater chance that you’ll be able to access the business funding you need.

You’ll even find that there are plenty of lenders who specialise in loans to businesses, or businesses owners, with a bad credit rating. You may still qualify for a loan, so long as your business is performing well and meets the other important lending criteria, the most important of which is your capacity to make your repayments on your loan.

Bad credit business loans with guaranteed approval in Australia do not exist, however if your business is performing well, there is a strong chance your personal credit history will be overlooked.


Each lender will have a formula they use to decide how much you can afford to borrow given your income and expenses. As a borrower with a low credit score, you may find they are only willing to lend you a limited amount.

However, this is your opportunity to begin repairing your credit record and build up a history of on-time payments. Once you have proven that your business is reliable, you may be able to take out a larger business loan in future.


Be sure to read all the terms and conditions carefully before committing to a business loan and seek professional financial advice if you’re in any doubt as to which is the right product for your business.

There are some lenders who will seek to charge higher rates for bad credit finance. In today’s highly competitive market there is less need to transact with these types of lenders.

Do some basic research and avoid any businesses offering finance at rates substantially higher than their competitors.

When evaluating potential lenders, it’s not just the interest rates you need to look at. Many loan products have a whole host of additional charges, including administration or management fees. You need to seek an independent, unbiased expert opinion before signing in to any loan agreement.

One of the most important things to look out for is penalties for early repayment. The best way to cut the cost of your finance is to pay off your business loan as quickly as you can. It’s in the lender’s interest for you to borrow and keep paying interest for as long as possible, so they may impose penalties to discourage extra payments or charge fees to repay early. In some cases they’ll let you pay the loan out early but they will not charge you any less for doing so.