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Funding possible up to $500k

Past bad credit history ok!

Secured and Unsecured options available

Loan term between 3-36 months

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What is a Bad Credit Business Loan?

Bad Credit Business Loans are business finance specifically designed for businesses and business owners with a low credit score or history of defaults. These loans are usually short-term and can often come with higher interest rates compared to other finance options.

We recognise that running a business is a difficult endeavour. It’s not rare that business owners have more delinquent entries in their credit files than non-business owners, and there may have been uncontrollable occurrences in the past that have resulted in a business’s credit being less than perfect.

Having a bad credit score makes it extremely hard to get a fair loan from the bank. However, sometimes a loan is necessary to keep the business running, and a bad credit score does not mean that you will never get a loan every again.

Here at Broc Finance, we welcome business owners with less than perfect credit scores. We are dedicated to helping them to get out of their struggle by offering a solution to this issue with our Bad Credit Business Loans.

Generally, to be eligible for a Bad Credit Business loan, you need to

  • Have an active ABN
  • Operate for more than 6 months
  • Have monthly turnover > $5K

To begin a loan application, you need to start off by thinking about how much loan amount you need to fulfil the purpose you had in mind.

Our loan guide

Bad Credit Business Loans

Loan amount

$5k- $500k

Interest rates from

15.99% p.a.

Loan term

3-36 months

Pre-approval time

2-4 hours

Unconditional approval & settlement time

24-72 hours

Repayments

Daily/Weekly/Fortnightly

Security

Depends on the loan amount.

What you need to know

Can be used for

Buying stock/Inventory

Paying wages/rent

Expansion into branches or another unit

Renovating business premises

Other working capital needs

Documents required (low doc approval)

Last 6 months bank statements

Valid identification proof

Documents required (full doc approval)

Financial statements

ATO statement

*The information provided in

critical information sheet

is intended as a guide only. Please contact us for more information.

Most Popular bad credit loans

The below are the most popular loans which a business can obtain with a bad credit history.

Unsecured invoice finance

An invoice finance facility allows access to funds to businesses in advance against their invoices.

Highly effective for businesses with higher invoice realisation period.

One can get higher limits without any security.

Helps with injection of short-term liquidity in the business.

Learn More
unsecured-invoice-finance

Secured Bad Credit Loans

These loans are secured by a property or real estate. The asset functions as security for the lender which allows small businesses to get a higher loan amount with a decent interest rate.

No limit on loan amount with approval up to 80% value of the security

No minimum of trading history required

Loan term 3-36 months

Learn More

Unsecured Bad Credit Loans

These loans do not require you to pledge any asset as security. Lenders will assess the financial strength and cash flow of your business to determine the loan amount.

Need only bank statements for approval up to $150k

Loan term 3-36 months

Funding possible in 24 hours

Learn More

What you should know about Bad Credit Business Loan

Have questions? Speak to our experts!

1300 253 041 Apply Now

Things to keep in mind before applying for a Bad Credit Business Loan

There are a few important things that one should always avoid while applying for a bad credit business loan to avoid unwanted delays in the loan approval process.

  • Randomly applying with multiple lenders
  • Not applying honestly
  • Excessive borrowing
  • Applying in quick succession.
  • Allowing multiple credit checks

To avoid any unwanted outcomes, we work with our customers to find the best-suited loan for their businesses and help them avoid these mistakes. Simply complete the application form or send us a message and one of our lending specialists will be in touch to discuss your financing requirement.

What are the pros and cons of taking a Bad Credit Business Loan?

Pros

Bad Credit Business loans can be approved and funded within 48 hours compared to lengthy bank Loans application.

Low Doc Approval: You can get a bad credit business loan based on the last 6 months bank statements and Identification proof.

Collateral isn’t always required. Although a secured loan may give you a better loan term.

You can rebuild your credit history by regularly making on-time repayments.

Cons

The interest rate may be higher compared to other finance options.

Some lenders may require you to put up an asset to reduce their risks.

How much Bad Credit Business Loan can I borrow?

Without a good credit history to rely on, lenders have to emphasise the other factors when determining the loan amount:

Financial strength

If the Bad Credit Business Loan is unsecured, lenders will emphasise the strength of the business’s cash flow and its ability to service the loan when considering the loan amount. A higher average monthly revenue can provide you access to greater loan amounts.

Time in business

To lenders, “time in business” could be evaluated as a factor of the momentum in the business. Usually, lenders assume businesses that have been operating for more than a year are more likely to take on more debt obligations. It just means that new businesses might not be able to borrow as much as established businesses. As time passes with on-time repayments being made, your loan capacity will gradually increase.

Industry

The amount of Bad Credit Business loan that is approved may differ based on the industry that a business operates in. This is because every industry has different methods of collecting payments from their customers. If your business is mainly selling products directly to end-users (B2C), you may collect payments in cash or credit card, which provides you with an immediate source of revenue, which is usually favoured by lenders.

On the other hand, if your business mainly makes commercial transactions with other businesses (B2B) where invoices are often used, the delayed payments may be seen as a risk by lenders, which could impact the loan amount you can borrow.

Quality of Accounts Receivable

This factor represents the likelihood that the cash flows that are owed to a company in the form of receivables are going to be collected. If your business debtors have been paying you on time, you are likely to be able to secure a higher amount of loan.

Value of security

If you are planning to pledge an asset to apply for a bad credit business loan, you can easily secure up to 75-80% of loan to value of the security pledged. These assets can include vehicles, appliances, business equipment, etc.

With all being said, please do not let the factors discussed above intimidate you to reach out to us. Broc Finance believes every company has unique strengths on its own and we are here to help you to present them effectively to the lenders so that you secure the business loan you need.

What documents are required to apply for a Bad Credit Business loan?

Low Doc

Generally, bad credit business loans up to $150k can be approved with basis low documentation.

  • Last 6 months bank statements.
  • Valid identification proof.

Full Doc (addition to low doc)

  • Financial statements
  • ATO statements
  • BAS statements

Ways to Improve your credit rating

It’s important to start taking steps to boost your credit score. Here are some tips that you can do to achieve that:

If you place enquiries with multiple lenders, there’s a high chance that the lenders would run a credit check on your file prior to assessing your file and in case your application is declined, the credit check would leave an impression on your while which may adversely impact your credit score.

Utilities such as gas and electricity are included, as are rent or mortgage payments in the credit file, so ensure to make all the payments on time.

If you happened to struggle to meet your repayment terms, please speak to your lender so they might be able to help you by putting you on a payment plan and get through the slower periods rather than allowing payment reversals and eventually listing default on your credit file.

How to apply for a Bad Credit Business Loan?

1. Check your eligibility

Check the basic loan eligibility of your business and complete the application form which takes 60 seconds.

Apply now 1300 253 041
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2. Submit your application

Once you complete your application form. We get in touch to discuss your business requirement and advice the documents required.

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3. Get you approved as quick as 24 hrs

Once we get all the documents required, we login your application with the most suited lender and get the loan approval in as low as 24 hours.

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Get pre-approved without any credit checks!

Choose loan options

Success Stories...

Our customers that were just like you!

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Real results with real people.

78+ customer reviews

5.0

rupali bibra

rupali bibra

Our company had an amazing experience with this company. We are so pleased with the service received from Mr Saroj. He went above and beyond to help us get out of the situation. We would highly recommend Mr Saroj who has wealth of knowledge and experience. His expertise in the finance industry assisted us to gain that financial freedom. Our case wasn’t easy and straightforward and took long six months to achieve our goals . Thanks for all the hard-work and patience while assisting us. Communication was so concise and clear . Always proactively communicating with us . Overall it was 7 star service .
Milan shrestha

Milan shrestha

I had an outstanding experience working with Aditya and Saroj( Broc Finance)! From start to finish, the process was seamless, professional, and stress-free. They took the time to understand our needs and provided us with a range of options that suited. Their communication was clear, prompt, and transparent, making the entire process straightforward.
Prarthana Moses

Prarthana Moses

Had the pleasure of working with Aditya to secure a line of credit, and I couldn’t be more impressed with his service. From the very beginning, Aditya was professional and attentive, ensuring that I got the best possible rate and terms. He guided me through the entire process, helping with all the necessary requirements and addressing any queries I had in a timely manner. His patience and support made the journey much easier and stress-free. I highly recommend Broc Finance for anyone looking for financial assistance – they truly go above and beyond!
John Christian

John Christian

Broc Finance were a pleasure to work with. Saroj took the time to understand the purpose for the facility and my business. In doing so, he secured exactly what I wanted, quickly and at a very competitive rate. I’d recommend Broc Finance to anyone looking for a finance facility who wants to work with a broker who can provide that personal experience that the Big-4’s just don’t offer. Great experience!! I look forward to working with Broc Finance in the future.
Mario Tadic

Mario Tadic

Sas was amazing, we received a great deal. He made the process so easy. Highly recommend.
Nano Etiennette

Nano Etiennette

This is the second time I dealt with Saroj, he has made this process very easy to understand . I highly recommend his services
Scott Rossborough

Scott Rossborough

Saroj and his team do an amazing job. Will highly recommend recommend to friends and family
Mathew John

Mathew John

Saroj and Aditya and the company are very professional and they have access to various lenders and institutions. It’s a one stop shop for all your financial needs and the speed, commitment and service is next level . Highly recommended

Have questions? Talk to a specialist!

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Frequently asked questions

With the advent of technology, the loan application has become simple and paperless without any hassle to take any printouts. All you need is to submit some basic details related to your business by completing the online application form and last 6 months bank statement of your business through a secured link provided by us. Additional documents may be requested depending on the type of business loan you are applying for.

Yes, for most cases. However, different lenders will analyse your application and evaluate it based on their own set of criteria. For example, your bank may refuse to grant a business loan with adverse credit history because of the risk you pose as a borrower, but some lenders may approve your application solely on the basis of your current business cash flow and revenue.

To get a secured bad credit business loan, all you need to have is an ABN and free equity in your property. 

To get an unsecured bad credit business loan, you need to meet some basic qualification criteria such as:

  • Have an active ABN;
  • Be operating for more than 6 months; and
  • Be turning over more than $5,000 per month in the last 6 months.

Not necessarily. You can avail unsecured business loan with a bad credit history if your company’s existing cash flow is robust and can pass the serviceability criteria. However, a security will always help you receive a higher loan amount with a better rate.

Yes. It is quite likely that you’ll be able to repay your bad credit business loan early, but you should check your loan agreement carefully before doing so to see if there are any early payment charges or penalties. If there are, repaying the loan sooner than expected may do more harm than good.

The lenders understand the nature of urgency for business owners. You may get the funds into your account within 3-4 hours as well. On average it generally takes 24-48 hours to get an unsecured business loan approved.

Lenders would run a credit check only after obtaining a consent from you which is present in the terms and conditions of most of the lenders and you’ll need to agree before submitting the application. At Broc Finance, we can get an indicative quote from the lender prior to starting a formal application with the lender which would save upfront credit check on your file in case you do not meet the lending criteria of the lender.

The loan application is obligation free and there are no application costs involved. You’ll be charged an origination fee only after your loan is approved and disbursed into your account. The origination fees differ from lender to lender and generally ranges between 2%-4% of the loan amount. The origination fee is a one-off fee and is on top of normal interest charged on the loan amount. Please contact us if you wish to know more details.

At Broc Finance, we endeavour to get the most adequate facility suitable to the business requirements of our clients. In most of the cases logged in through us, we try to get an indicative offer from the lender for our client’s consideration before proceeding with formal application and consent to credit check. This approach helps our clients to avoid unwanted rejections and credit checks which can significantly impact their credit score.

We would be happy to answer, if you have any other questions. Please contact us.