Can I get a business loan if I have bad credit?

Some people think having a clean credit record—or not borrowing at all—will make their credit score look good. But lenders want to see someone who has borrowed and successfully repaid their loan. They will take a look at your business credit history as well as at your personal credit score. Many get denied a loan because they have no credit history.

To maintain a healthy credit score, business owners should consistently pay their debts on time and spend below their credit limit. You can check your credit score with Australian credit bureaus like Experian and Equifax.

If you find you have a poor credit score, check if any information on your record needs correcting or could be fixed. If you have current debts, it would be good to drive those down before you apply for a new loan.