How to Get an Australian Business Loan with Bad or No Credit
Business financing are a necessary evil for startups or small businesses. However, if you have bad credit or no credit history at all, getting a business loan can be incredibly difficult. Many banks will outright reject your application for a loan, or they'll offer you a loan with very high interest rates or terrible repayment terms based on your credit (or lack thereof). There are, however, other options for small business owners to get a business loan despite their bad or no credit. These companies work with banks directly on your behalf to get you a loan with better rates or better repayment terms. Of course, there are many different companies to choose from, and not all of them are reputable. Let's go over the pros and cons of trying to get a loan first with a bank, then we will compare a few companies that can work with you on your loans, as well as any other options you may have.
Getting a Small Business Loan through a Bank
Small business owners often experience financial troubles. This isn't necessarily because their business isn't successful – it's because the costs of running a business and expanding it are high (and are often due when your cash flow just isn't there). If you choose to go through a traditional bank for your small business loan, the process very well may be difficult. In many cases they request that you provide them with a detailed proposal of how you will use the loan, a written business plan, proof that you'll be able to repay, and more. It may feel like you're jumping through hoops – probably because you are.
However, if you have bad credit as a business owner (or no credit history at all) banks will often outright deny you access to a business loan. Unfortunately, this could put many small businesses out of commission entirely. Without the necessary funding, they won't be able to thrive or survive in today's business climate. If a traditional bank does offer you a loan despite your bad or no credit, the loan's interest rate might be very high or you may find that the repayment terms are ones that you simply cannot meet.
Loan Assistance Companies for Businesses in Australia
There is, however, another option. Many companies have cropped up in recent years because they see this as an existing and unfortunate problem. Australia is a mecca for startups and small businesses (even Amazon is opening up its Australian marketplace nowadays) – unfortunately, local banks haven't made it easy on these fledgling companies to prosper financially. So, loan assistance companies that specifically target small businesses and startups emerged.
These companies have a different perspective. They see your small business as more than just a risky venture – they see your successes and your capabilities. They also see your chance for a bright, booming business future. They want you to receive the funding you need without the notorious delays you'll experience when dealing with a bank getting a small business loan. Their online application process is straightforward, and you often receive funding in 24-48 hours after your application has been submitted and approved. If for some reason you aren't approved, it likely won't be due to your credit history. Most of these companies don't look at your credit at all. If they do, it's only a piece of the equation when they determine whether you're approved.
Companies to Consider
If you're an Australian small business and you need funding ASAP, I recommend considering one of the following companies. They're reputable, have received positive customer reviews, and are known for providing fair repayment plans, getting the best loan rates for small business owners, and funding their customers within 24-48 hours after the application has been received and approved.
1. Prospa: Prospa focuses on making business loans easy for small businesses in Australia. They guarantee a quick response to your online application and most applicants are funded within 24 hours. Applicants also receive a variety of loan options to select from. They do require that you've been in business for a few months and have some consistent cash flow.
2. Sail: Sail offers unsecured business loans to small business owners of Australia. They have a single, one-time 2.5% establishment fee and from there have a weekly repayment schedule. Everything is direct debited and automated – so things stay simple.
3. Capify: Capify is one of the more well-known Australian small business lenders. They have an easy online application and can often give you an approval in 60 seconds or less with funding coming in 24-48 hours after that.
Getting a small business loan doesn't have to be a hassle. Companies like these understand the stress that you're under, and they don't penalize you for bad or no credit history. As a small business owner, this can be a huge win!