Bad Credit Business Loans

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

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.

Critical Information Sheet

Borrowing Limits
Loan Amount$5k- $500k
Term3-36 months
Can be used for
  • Buying stock/Inventory
  • Paying wages/rent
  • Expansion into branches or another unit
  • Renovating business premises
  • Other working capital needs
SecurityDepends on the loan amount.
Pre-Approval Time2-4 hours
Unconditional Approval and Settlement Time24-72 hours
Documents required Low Doc Approval (up to $250k)
  • Last 6 months bank statements
  • Valid identification proof
Documents required Low Doc Approval (> $250k)
  • Financial statements
  • ATO statement
Interest RatesStarts from 15.99% p.a.
  • Quick funding process
  • Helps to build your credit
  • Least documentation
*The information provided in critical information sheet is intended as a guide only. Please contact us for more information.

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



Most Popular bad credit loans

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

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.

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.

This facility gives flexibility to business owners to redraw or repay as and when the funds are required. This is highly effective for businesses with fluctuating cash flow requirements.

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.

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.

How to apply for a Bad Credit Business Loan?

Check your

Check the basic loan eligibility of your business as mentioned above

Submit your application with required documents

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

Get approved in as quick
as within 24 hours

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.

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.


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?

The table shows the basic documents you need to submit to apply for a Bad Credit Business Loan. Additional documents might be needed depending on the type of loan you are applying for.

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

Full Doc: For a bad credit business loan of more than $150k, you may require submitting some additional documents considering the size of the loan.

Low Doc

Full Doc (addition to low doc)

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:

Avoid shopping around:

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.

Make on-time payments on your bills and Loans:

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.

Settle defaults/court action on your file immediately

The moment you are made aware of a default or court action on your credit file, immediately get in touch with the petitioner and get it remover if marked erroneously or settle it as more delayed it get, the worse gets your credit score.

Communicate with your lenders:

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.
It is important to seek out a Bad Credit Business Loan from a lender who understands your business. Here at Broc Finance, we have lending specialists that are passionate to help you to find lenders that are happy to work with your situation. Please feel free to fill out the contact form get in touch so that we can discuss your business loan requirements in detail.

What Our Clients Say

Based on 46 reviews
Ajay Kanumuri
Ajay Kanumuri
I would strongly recommend. Saroj Shah helped to get my loan with in span of three days. He was very supportive and clearly explained the loan process.
Abhishek Chhugani
Abhishek Chhugani
Wonderful service by Saroj. Took care of my requirements for business loan. Turnaround time from application to disbursement was 2 days.
Atulkumar Patel
Atulkumar Patel
I don't want to miss this opportunity to say About Saroj Work that he just made it impossible job into possible , I have got loan of 1.5 million event though I have very low credit score . Great work , and highly recommend for any kind of loan issues.
jas singh
jas singh
Great services, great effort by Saroj.
Michael Banabakis
Michael Banabakis
Easy to deal with and nothing was a problem!!
Liesel Collings
Liesel Collings
The broker was super helpful and understanding. He knew I needed the loan in a rush and got me the best deal possible.
Aghar Tefera
Aghar Tefera
Fantastic service!! Very nice & helpful staff!! I had the best experience and got things done promptly and professionally! Thank you Broc Finance 😊!!
Nejatali Rotivand Ghiasvand
Nejatali Rotivand Ghiasvand
Very professional and always there to help you
Khanyi Moyo
Khanyi Moyo
Thank you. This was a great experience with a team that takes time to ask what your needs are then help you find the best deal.
Mai Yang
Mai Yang
Absolutely wonderful service! Saroj was amazing with keeping us up to date with our loan application which was approved quickly without any hassle. I would definitely recommend Broc Finance!

FAQ's About Bad Credit Business Loans

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.

We will work with you

to overcome approval related hurdles

by getting your asset finance, property finance and unsecured business loans, without the frustrations of the bank process.

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