Bad Credit Startup Loans in Australia 2023

If you’re contemplating starting a business in Australia, you may be exploring options for business financing. Securing funds for a startup can be difficult, especially when your business is new and lacks a credit history. It becomes even more challenging if you have a poor credit score and require business finance. Nonetheless, there are lenders in Australia who specialize in offering business startup loans specifically designed for individuals with bad credit. These lenders can assist you in obtaining bad credit business loans in Australia.

What is Bad Credit in Australia?

  • The average credit score or Equifax score in Australia is 550. A credit score below 500 is considered a bad credit score, while a credit score below 400 is considered a very bad credit score. A credit score is a figure used by lenders to determine their creditworthiness. When a business has a low credit score, it is perceived as risky by lenders, who may be hesitant to provide financial assistance to such businesses.

Can My New Business in Australia Get a Loan With Bad Credit?

Yes. There are lenders who specialize in providing business loans even if you have a bad credit score. It can be challenging to get a bad credit startup loan from a bank, but you can get one from other lenders. Online lenders are known for being lenient with loan approvals. However, it is worth noting that bad credit businesses loans attract high interest rates and upfront fees.

How to Increase Chances of Getting Bad Credit Startup Loans in Australia

There are several steps you can take to improve your chances of getting approved for a bad credit startup loan in Australia. They include:

  • Have a guarantor. If you have a friend or a relative with a good credit score, they can guarantee your bad credit startup loan. In case you are unable to repay the loan, they will be responsible for repaying the loan for you.
  • Improve your credit rating. If you have outstanding debts, you can clear the debts and start rebuilding a credit rating. With a good credit score, you can easily get approved for loan at low interest rates.
  • Provide collateral. Secured business loans are by far cheaper compared to bad credit unsecured business loans. You can offer a business asset like car or land as security to get approved for a startup loan. In case you are unable to repay the loan, the lender can repossess the asset to offset your loan balance.

Business Loans for New Business Australia

The following are some of the best bad credit business loans you can consider for your new business in Australia.


OnDeck is a fintech company that offers small business loans in Australia. The company offers loans ranging from AUD$10,000 to AUD$250,000. Loans are available for businesses that have been in operation for at least one year and have a minimum annual revenue of AUD$100,000. OnDeck loans are unsecured, which means that businesses do not have to provide collateral to qualify for a loan. The company has a minimum business credit score requirement of 400, which is considered to be “average”. However, OnDeck will also consider other factors when evaluating a business’s creditworthiness, such as the length of time the business has been in operation and the amount of annual revenue.


Lumi offers bad credit business loans in Australia. The company has a minimum business credit score requirement of 350, which is considered to be “poor”. It offers loans ranging from AUD$5,000 to AUD$500,000 with flexible terms, and no hidden fees. Lumi’s interest rates are relatively high, with APRs starting at 14.9%. However, the company offers quick funding and no collateral requirements, which can be beneficial for those looking for business loans with bad credit.

Universal Finance

Universal Finance is one of the best lenders that offer guaranteed approval for bad credit business loans. Whether you are looking for funds to manage your running costs or buy business equipment, Universal Finance can help you get funding. The lender has been offering business loans in Australia since 1999. The lender does not charge valuation fees and no credit checks. The lender has built a reputation in offering unsecured startup business loans bad with credit in Australia. The lender has a fast loan approval and interest rates are as low as 0.999% per month.

ALC Commercial

ALC Commercial offers bad credit business loans in Australia with no credit check. You can apply for the loan online without further hurting your credit score. Once you have made a loan application, you will get fast approval within 24 hours. You will then receive business funding in your account as soon as possible. There is minimal documentation, while the lender also offers doc loans for small to medium-size businesses. The lender does not look at your credit score, but instead looks at your current financial situation.

Max Funding

If you are looking for a small business loan with bad credit in Australia, Max Funding is an excellent option. The lender has easy eligibility requirements and a decision will be arrived at in five minutes. You can apply for the loan if you are a startup, established business owner, commercial property investor, or you have a bad credit history. You can access funding within 24 hours. The loan term is usually between 1 month to 36 months. You can get a loan amount of between $3,000 and $50,000. You can pay off the loan earlier or make extra repayments to lower interest rates.

Crypto Loans in Australia for Business

If you have crypto such as bitcoin, and you are looking for a startup loan, you can get one. Crypto backed loans in Australia are a great option since you don’t need credit checks to get approved. To get a crypto backed business loan, you only need to offer your crypto as security for your business loan. The following are some companies that are offering crypto backed loans.


Fifit is a crypto lender that allows business owners in Australia to borrow money against their bitcoin holdings. The company was founded in 2021 and is headquartered in Australia. FiFit offers loans ranging from $500 to $50,000, with interest rates starting at 6% APR and a 2% establishment fee. The company also offers a 24/7 customer support line.



Loda is an Australian company that offers crypto backed loans. To get a crypto loan from Loda, you just need to deposit crypto assets into your account. After that, you can then open a credit line. Your credit limit will be calculated based on the value of your cryptocurrency. You can then request a loan, which will be deposited to your bank account.

Matias Group

Matias Group is a crypto lender in Australia. The terms of Matias Group’s crypto loans vary depending on the type of loan and the amount of cryptocurrency you are using as collateral. However, in general, you can expect to receive a loan amount that is up to 50% of the value of your cryptocurrency. The interest rates on Matias Group’s crypto loans are also competitive, starting at 6.9% APR.

The lender offers different types of financing for businesses in Australia like vehicle finance, equipment finance, working capital, debt, and trade finance. You can get approved for the loan within 24 hours and have the funds in your account in a few minutes. You can calculate the interest rate using the Crypto loan calculator available on their website.

Additional Sources of Bad Credit Starup Loans in Australia

In addition to the previously mentioned options, there are other sources of bad credit loans available for new businesses in Australia.

  • Peer-to-peer lending platforms offer a direct connection between borrowers and individual investors. These platforms often consider the overall financial health of your business rather than solely relying on credit scores.
  • Microfinance organizations specialize in providing small loans to individuals and businesses with limited access to traditional financial services. They may be more lenient in their credit requirements.
  • Approaching family and friends who are willing to lend the necessary funds is another potential avenue. It is crucial to approach such arrangements professionally and establish clear terms to maintain healthy relationships.
  • The Australian government offers various business startup grants and loan programs specifically designed to support small businesses. These programs may have less stringent credit requirements. Explore options provided by organizations such as the Small Business Development Corporation (SBDC) and the Australian government grants.

Bad Credit Loans for Startups in Australia

Securing a business loan with bad credit can pose challenges for startups in Australia. However, there are several avenues to explore in order to increase your chances of approval. Options such as non-bank lenders, online lenders, and alternative financing solutions offer more flexibility in lending criteria. Additionally, government grants and microfinance organizations provide support to businesses with limited access to traditional financial services.

To improve your likelihood of loan approval, you can consider seeking someone to guarantee your loan, offering collateral, or working on improving your credit rating. Another alternative is utilizing cryptocurrency as security for your startup loan, which eliminates the need for credit checks.

Can I get a loan with bad credit in Australia?

While it may be challenging to secure a loan with bad credit in Australia, there are still viable options to explore. These include considering non-bank lenders, secured loans, payday loans, peer-to-peer lending platforms, and credit union.

What is the minimum credit score for a loan Australia?

The minimum credit score required for a loan in Australia can vary depending on the lender and the type of loan you are applying for. Traditional lenders, such as banks and credit unions, typically have stricter credit score requirements compared to alternative lenders. In general, most traditional lenders prefer borrowers to have a credit score of 600 or above.

Are there bad credit business loans in Australia?

Yes, there are bad credit business loans in Australia. However, bad credit business loans in Australia often have higher interest rates and stricter terms. Consider online lenders, credit unions, and government-backed loan programs designed for businesses with bad credit.


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