Last Updated: 29th December, 2022


Note: Lenders have started rolling back pre-COVID policies. Please note that we are still only accepting applications for commercial property loans with a minimum loan size of $500,000, and a minimum deposit of 30%. We apologise for the inconvenience.

Is it possible to buy a commercial property if you have a bad credit history? Can you consolidate your business debts into a mortgage?

Although most banks will show you the door, there are several specialist commercial lenders that can look past your credit file, focus on the future and assess you on your merits rather than a set of guidelines.

Commercial Property

Buying a commercial property with bad credit

  • Borrow up to 75% of the commercial property purchase price.
  • Maximum loan size of $10 million.
  • Bad credit history, arrears and reduced income evidence are considered.
  • Purchases, investment and business loans are considered.

Are you looking for someone who understands your situation?

Call our mortgage brokers on 1300 889 743 or fill in our free assessment form to discuss what solutions we have available.

Are low doc loans available?

There are specialist lenders that help people who have low doc loans or who have a bad credit history, but what if you have both?

Believe it or not some of our lenders can approve a low doc commercial loan for self employed borrowers with a less than perfect credit file. It isn’t always straight forward as you’ll need to prove how your situation has changed or prove an exit strategy.

If you cannot prove your income then no doc commercial loans known as an asset lend may be suitable.

What type of black mark did you have?

What is considered to be a bad credit history?

These will all show up on your credit file or on the credit file of a company which you are the director of.

That’s right, the credit files of your companies matter even if they aren’t the borrowing entity!

There are also some types of bad credit which do not show up on your credit file:

  • Your commercial loan is in arrears
  • Breaching the terms of your business loan
  • Not paying the loan off at the end of the term
  • Overdrawing your business bank account
  • A past problem with a particular bank

The good news is that our mortgage brokers can help with almost all of these situations! Call us on 1300 889 743 or fill in our free assessment form to see how we can help.

Business disputes

The most common reason for a business to have a bad credit history is because of a dispute with a major supplier or business partner.

If the dispute is not resolved quickly then your solicitor may advise you not to pay the bill to the supplier, resulting in a default on your credit file.

If we can provide adequate evidence of the dispute and that you had the financial capacity to pay the outstanding invoice if you had wanted to, then we may be able to get you approved with a bank that is more understanding.


Refinancing a commercial loan

  • Borrow up to 70% of the commercial property value.
  • Maximum loan size of $5 million.
  • Bad credit history, arrears and reduced income evidence are considered.
  • Equity releases, refinancing tax debt, debt consolidation and business loans are considered.

Do you need help to refinance your commercial loan?

Call our mortgage brokers on 1300 889 743 or fill in our free assessment form and we’ll help you to consolidate your debts into one easy repayment.

Is your loan in arrears?

Did you know that lenders are more hesitant to lend to someone who is behind with their loan repayments than someone who has several defaults on their credit file?

That’s because missed payments on your business loan show that you are currently experiencing financial distress, whereas a problem with your credit file may have been due to a one off event which has now been rectified.

If you have the capacity to make your repayments then there is usually a lender who can approve your loan.

Consolidating commercial debt

Major banks often approve complex loan products for self employed borrowers when there are cheaper and simpler options available. They are reluctant to consolidate your debts into a standard business loan as this reduces your rate and their income!

In addition to this, many businesses have outstanding debts with the ATO which major banks will refuse to consolidate. Thankfully there are a range of specialist commercial lenders that can consolidate business credit cards, overdrafts, commercial property loans, business loans and even tax debt into a mortgage.

What if I’m with a private lender?

Is your business loan secured by a caveat or a second mortgage on your property?

Private lenders are expensive and are considered to be a last resort when the banks and specialist lenders can’t help. Despite this, some mortgage brokers put their customers into these expensive short term loans because they lack the knowledge of which specialist lenders can help someone like you.

As long as you can afford the repayments, we can refinance your private loan using your commercial property or residential properties as security.

What types of real estate are acceptable security?

The ideal security for a lender is a non-specialised residential or commercial property.

  • Residential property (home or investment property)
  • Standard commercial property
  • Offices
  • Factories
  • Retail premises
  • Restaurants
  • Warehouse
  • High quality rural properties

Non standard properties such as pubs, child care centres or petrol stations are more difficult to finance with a bad credit business loan. This is because they are more difficult to value, have larger fluctuations in their value and can take longer to sell.

Business Loans

Can a small business borrow with bad credit?

As a small business your ability to grow, take advantage of opportunities and survive the bad times is reliant on your ability to access credit.

Without the funds you need, you can be left on the sidelines while your competitors thrive. Too many small businesses aren’t reaching their potential because they don’t know which lenders can offer solutions for someone with a bad credit history.

Our mortgage brokers are experts in bad credit business loans. Give us a call on 1300 889 743 or enquire online and one our staff will call you back to discuss your options.

Proving the issue was in the past

One of the keys to getting a low interest rate is to prove that the problem with your credit history was a one off event that happened in the past.

Our mortgage brokers will ask you to provide additional documentation to support your story which will allow us to present a case to a lower priced lender. We know which banks can make exceptions to their lending policies and which can’t.

Apply for a bad credit business loan

Are you looking for someone who understands your situation? Are you looking for solutions, not excuses?

Call the experts on 1300 889 743 or complete our free assessment form and we’ll get you and your business back on track.