If you are thinking of launching a startup in Australia, you might be considering business finance. Getting money to launch a startup can be challenging since your business is new and doesn’t have a credit history. Worst of it, you be having a bad credit and you are in need of business finance making it even harder. However, there are lenders who have specialized in providing bad credit startup loans in Australia and can help you get funding.
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. Businesses with poor credit scores are considered risky and lenders can shy away from lending such businesses money.
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Can My Startup Business Get a Loan if I Have Bad Credit?
Yes. There are lenders who specialize in providing loans to businesses with 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 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.
Small Business Loan with Bad Credit for Startups
The following are some of the best bad credit start-up loans you can consider for your startup in Australia.
Universal Finance
Universal Finance is one of the best bad credit startup business loans guaranteed approval Australia. 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 to startups 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 credit Australia. The lender has a fast loan approval and interest rates are as low as 0.999% per month.
ALC Commercial
ALC Commercial is a startup loan for bad credit in Australia. You can easily get a fast, simple no credit check business loan, while you can also refinance an existing business loan with the lender. 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 enterprises. 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 for startup in Australia, Max Funding is an excellent option. The lender has easy eligibility 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 Startups
If you have crypto such as bitcoin and you are looking for a startup loan, you can get one. Crypto backed loans for business 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 startups that are offering crypto business loans for startups.
Fifit
Fifit is a business loan that allows you to leverage bitcoin. Fifit startup allows businesses to secure funding against bitcoin. Unlike many other lenders that require the borrower to provide property as security, Fifit uses bitcoin as security for a business loan. You can get a loan of between $500 and $50,000. The lender charges a 7% interest rate and a 2% establishment fee. To ensure security, when you offer bitcoin as a security, it is stored in cold storage during the loan period. This prevents your bitcoin from cyber-attacks and unauthorized access.
Loda
Loda is an Australian startup that is providing businesses with startup loans. You can use your crypto assets as collateral to borrow a loan. 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 assets. You can then request a loan which will be deposited to your nominated bank.
Matias Group
Matias Group is a crypto business lender in Australia. The lender offers different types of financing for businesses like vehicle finance, equipment finance, working capital, debt, and trade finance. When you offer your crypto as security, they are stored in cold storage to ensure their security. 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.
Summary of Bad Credit Startup Loans in Australia
If you have bad credit or your business does not have a credit history, you can still get business loans in Australia. There are many online lenders that can help you get a loan. To increase your chances of getting approved for a business loan, you can look for someone to guarantee you a loan. You can also provide collateral or improve your credit rating to get approved. The other option is to use crypto as security for your startup loan. This option does not require credit checks.
