Business loans with bad credit in Australia
A patchy credit file makes business finance harder in Australia, but not always impossible. Lenders vary widely in how they treat defaults, judgements and late payments: some decline outright, others look past an old, paid default if your current cash flow is strong. There's no guaranteed approval, and anyone promising it is a warning sign. What helps most is a clear, recent record of money moving through the business.
We won't pretend every enquiry gets funded. What we can do is tell you whether the lenders we work with are likely to consider your situation, rather than sending you off to apply blindly and collect knock-backs that dent your file further.
What lenders weigh when credit is imperfect
The credit score is one input, not the whole decision. With impaired credit, lenders lean harder on the things that show the business is trading and can service repayments.
- Recent bank-account turnover and consistency
- Whether the default is old, paid, and explained
- Current ATO position, and whether any debt is on a payment plan
- Time in business and the sector you trade in
How to improve your odds
Before applying, it's worth getting your file in order. Small, practical steps change the picture more than you'd expect.
- Pay or formalise any outstanding defaults where you can
- Put ATO debt onto a documented payment arrangement
- Avoid a scatter-gun of applications, each one leaves a mark
- Have a plain explanation ready for anything on the file
The lenders on our panel
| Lender | Advertised rate from | Loan size | Typical speed | Products | Industry code |
|---|---|---|---|---|---|
 Lumi | Quote-based | $5,000 – $1,000,000 | Same business day | Term loan, Line of credit | AFIA Code signatory |
 Moula | From 15.99% p.a. | $10,000 – $500,000 | Next business day | Term loan | AFIA Code signatory |
 Prospa | Quote-based | $5,000 – $500,000 | Funds within an hour of signing | Term loan, Line of credit | AFIA Code signatory |
Terms as at July 2026, from each lender's own site. “Quote-based” means the lender prices each loan individually (Lumi quotes a total repayment; Prospa uses simple interest) rather than publishing a headline rate. Figures are indicative, not a quote; your rate depends on the lender's assessment. Verify current terms with the lender.
Refer Labs may be paid a commission by a lender if your loan settles. This never changes what you pay, and we are not paid to rank one lender above another. How we make money.
Check your options in about a minute
Tell us what you need. A person reviews every enquiry and introduces you to the lenders that fit. No documents to upload.
Common questions
- Can I get a business loan with a default?
- Sometimes. It depends on the age and size of the default, whether it's paid, and how your business is trading now. Some lenders consider it; some won't. A person reviews your enquiry and tells you which, if any, are realistic before you apply.
- Will applying hurt my credit score further?
- Submitting our form doesn't trigger a credit check. A lender only checks credit if you proceed to a full application with them. Making many separate applications in a short window can lower your score, which is one reason a single, targeted introduction helps.
- Are 'guaranteed approval' business loans real?
- No. In Australia no legitimate lender guarantees approval before assessing you. Treat that promise as a red flag for high fees or a scam.