Defaults, judgments or late payments can limit your options, but they do not always rule out business finance. Lenders weigh how serious and how recent the problem is against the rest of the picture: your trading history, the asset and the security you can offer.
What lenders look at
- The type, size and age of any negative listings, and whether they are paid or still open.
- How the business is trading now: income, cash flow and the length of time the ABN has been active.
- The asset and the security it gives the lender, for example a vehicle or equipment.
- The directors and any guarantors, as well as the business itself.
Options that may be available
- Specialist or non-bank lenders: some consider applications that mainstream lenders decline. This is usually at a higher cost, so compare the total.
- Asset-secured finance: finance backed by a vehicle or equipment can give a lender more comfort than an unsecured loan.
- A larger deposit: borrowing less reduces the lender's exposure.
- A guarantor or co-borrower: a stronger second party may improve the application. Not every lender allows it, and it carries real obligations for the other person.
- A clear explanation: a short, honest account of what happened and what has changed can matter.
What a broker can do
A broker can look at your situation before anything is lodged, point to the lenders that may consider it and help you avoid scattering applications, each of which can leave an enquiry on your file. A broker cannot promise an approval or a rate; the lender decides.
How to prepare
- Get a copy of your credit report and check it for errors you can dispute.
- Pay down or settle what you can, and keep your repayments up to date from now on.
- Avoid new credit applications in the months before you apply.
- Gather your financials, bank statements and the details of the asset.
- Be upfront about your history so the options you look at are realistic.
If the issue is a tax debt, see business finance when you owe the ATO. To pick between lenders, read how to choose a business loan lender.
The takeaway
A poor credit history can narrow and raise the cost of your options, but it rarely ends them. The best first step is a frank look at your position before you apply. loan-o can talk it through and compare lenders from a panel of 50+; start a free finance check, with no credit check to enquire.
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Finance is subject to lender approval, lending criteria, terms, conditions, fees and charges. The information in this article is general and does not take into account your personal or business needs.
Last reviewed: 8 October 2026. This content provides general information only. It should not be treated as personal financial, tax, legal or credit advice.
Frequently asked questions.
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Typically negative listings such as defaults, court judgments, bankruptcy or debt agreements, repeated late payments, or many credit applications in a short time. Lenders look at how serious, how large and how recent each item is.
loan-o does not run a credit check just to enquire. A lender will assess your credit if you decide to apply, so talk through your situation first and decide whether and where to apply.
Often, yes. Lenders may look at the directors and guarantors as well as the business, especially for a newer or smaller company.
Each formal application can leave an enquiry on your file, and many in a short time can count against you. That is one reason to choose the lender carefully before you apply.
Often, since lenders price for risk, but it depends on the lender, the asset and your circumstances. Compare total cost, and ask what would improve your options.
Worried about your credit file? Ask a loan-o specialist.
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