Can You Get Business Loans With Bad Credit?

The changing landscape of the alternative funding space means that you can get a small business loan. The alternative finance market is stronger than ever creating providing small businesses with options outside of traditional lenders. If your bank is not willing to help due to a low credit score or previous default, it’s time to explore bad credit business loans.

A low credit score is not the end of the road

Strict lending guidelines have historically made it difficult for individuals with previous defaults or a low credit score to apply for a business loan. Banks are quick to decline applications and exclude persons from financing options. There is now a growing number of alternative sources of business finance including lending institutions like Simply Funds.

There are now loan products that have been specifically designed for applicants with a low credit score. With a more flexible lending criteria, alternative funding institutions look beyond your credit score. You are not required to provide an extensive amount of financial information such as tax returns and cash flow statements.

Bad credit business loans are suitable for both established businesses and those seeking to start a new venture. Start up loans provide an avenue for new businesses who do not have capital, a customer base, or detailed financial statements. To maximise your potential and give your business the best chance of success, consider all business funding options available.

What to look for in bad credit business loans

When looking at bad credit business loans as a business funding option there are numerous factors which should be considered. They include your financial position, lending criteria, application process and the characteristics of the loan. Consider the following and how they may impact your decision:

Credit Check: Simply Funds do not require a credit-check for a pre-approval. This means that you can find out if you are eligible for a bad credit business loan without having anything added to your credit file.

Lending Criteria: A major reason why alternative lenders can provide business funding to those with a bad credit history is their flexible lending criteria. Unlike banks, they are not restricted by stringent guidelines which opens the door for those seeking a second chance.

Process: Online lending providers such as Simply Funds have a streamlined application process. Applications can be approved and funded in a matter of days with limited documentation provided.

Flexibility: It is essential to know and understand the characteristics of the loan you are applying for. As there is a greater risk associated with an applicant who has a bad credit history, lenders will safeguard against this by having higher interest rates. As your financial circumstances may change throughout the duration of the loan, check if your lender offers the ability to pay the loan off early.

How do I improve my credit score?

A low credit score can make the loan application process lengthy and extremely frustrating. This does not have to be the case for an extended period and bad credit business loans can be used as a stepping stone to other loan products. There are numerous basic principles which can be followed that will help quickly improve your credit score. They include:

Paying your bills on time

It is essential to pay utility and general bills on time. Although paying bills on time does not appear on your credit file, it is what they prevent from occurring that matters. Most defaults that lead to a bad credit history are general bills such as phone, internet, electricity, or water. Create good habits by paying your bills on time and enjoy the long-term benefits.


Applicants who show signs of a stable lifestyle are looked at favourably by credit providers. Someone who has lived at the same address and had the same form of employment for an extended period is considered low risk. Major lending institutions often do not consider applicants who have been working with their current employer for a period of less than 12 months. This also applies to businesses that cannot provide financial statements and tax returns.

Use various credit types

An effective way to improve your credit score is by paying off debts in time and showing that you can do so across a variety of credit types. Paying off a small business loan, car loan and consistently making credit card repayments when they fall due will improve your ability to access significant business funding.

Accurate credit history

It is not uncommon for individuals to have errors on the credit file. It is a good idea to obtain a comprehensive record of your credit history so that you are aware of your credit score and any potential errors. If there is an error(s), contact the relevant credit provider and take the necessary steps to have them removed.

Business Loans With Simply Funds

Simply Funds offers a wide range of loan products. A key feature of our fast business loans is that they can be approved and funded in less than 48 hours. Our transparent application process means that you can apply and find out whether you are eligible for a loan within minutes. Speak to one of our lending specialists today and take the first step towards a prosperous financial future.

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A Bizcap provides both Unsecured and Secured loans to Small Business Owners. When assessing a loan application Bizcap generally doesn't take into consideration if a prospective customer has specific assets to provide as security. However:
(a) if the loan amount is above $30,000 (or any other figure which Bizcap determines from time to time), Bizcap will, under the loan agreement take a charge. For a corporate borrower and any corporate guarantor, the charge is over all of that entity's present and after-acquired property (that is. the security is not over specific assets but any and all assets which the entity may have). For a sole trader borrower and any individual guarantor, the charge is over its current and future real property; and
(b) in certain instances, for example, where the loan relative to the cash flow of the borrower is of a size that warrants the provision of security over specific assets. Bizcap may require specific security to be granted over those assets. Bizcop may register its security interest(s) under relevant legislation, including the Personal Properties Securities Register and the register held under the Real Property Act 1900 (NSW) or Its equivalent.
I n addition. Bizcap may take personal guarantees from directors of corporate borrowers, directors of corporate guarantors and certain individuals. No registrations are made in respect of guarantees.