Are bad credit loans available for business purposes?

Share your concerns & ideas about commercial property loans in Australia.
thejoker
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Joined: Mon Jan 18, 2016 11:54 am

Are bad credit loans available for business purposes?

Postby thejoker » Sun Apr 10, 2016 10:56 am

I've been looking at different business loans for a while but I haven't found any lenders mentioning that they provide bad credit loans. I actually was good to go with a normal business loan but then I missed out on making some repayments and a few defaults were lodged in my credit file. I'm worried I won't be able to get the loan when I want to so any help is greatly appreciated!

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Otto Dargan
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Re: Are bad credit loans available for business purposes?

Postby Otto Dargan » Mon Apr 11, 2016 9:01 am

Hi thejoker.

Welcome to the forums.

Bad credit business loan are actually available and these are mainly targeted towards businesses that have had defaults.

Lenders are generally quite strict when it comes to business loans, especially if bad credit is involved. This includes a requirement of having a security property even if you're only borrowing for your business and not necessarily to buy property.

A bad credit business loan is actually all about your security property and it determines the amount you can borrow.

So if you have a residential property as security, you may be able to borrow up to 80% of the property value. If you have a commercial property as security then you may be able to borrow up to 60% of its value.

Please note that you're typically limited to borrowing up to a maximum of $10 million on your loan depending on the strength of your business, loan application as well as loan proposal.

Cheers,
Otto
Otto Dargan
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P | 1300 889 743
Home Loan Experts

thejoker
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Joined: Mon Jan 18, 2016 11:54 am

Re: Are bad credit loans available for business purposes?

Postby thejoker » Mon Apr 11, 2016 12:53 pm

That's great! Are there any specific requirements that I need to meet to qualify or is a security property all that's needed?

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Otto Dargan
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Re: Are bad credit loans available for business purposes?

Postby Otto Dargan » Mon Apr 11, 2016 4:44 pm

Hi thejoker,

You'll generally be required to meet certain requirements such as:
  • You must have a stable and regular cash flow that you can prove using cash flow projections, BAS statements or tax returns.
  • Your business must have been running for two to three years although there are few lenders that may accept a business that's been running for only one year.
  • You don't have too many bad credit records or any major defaults.
  • Your business hasn't gone through any restructuring recently.
  • You are an Australian resident and the security property is in Australia.
You're more likely to qualify if you have substantial equity in property. A great business loan proposal can also help you significantly.

You can learn more about all of this on our website. You can also speak with one of our credit specialists directly by calling us on 1300 889 743. If you want one of us to contact you instead, you can complete our free online assessment form and we'll contact you within 24 hours.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

thejoker
Posts: 6
Joined: Mon Jan 18, 2016 11:54 am

Re: Are bad credit loans available for business purposes?

Postby thejoker » Tue Apr 12, 2016 10:12 am

That seems reasonable. I'd really like to speak with your mortgage brokers. I'll give you a call tomorrow to discuss my situation. Thanks and good day.

panda
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Joined: Thu Sep 17, 2015 12:54 pm

Re: Are bad credit loans available for business purposes?

Postby panda » Fri May 27, 2016 12:41 pm

Hello. I tried looking for the interest rates on different business loans but it seems like they are very difficult to find. Why is it so difficult to get this?

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Otto Dargan
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Location: Sydney, Australia
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Re: Are bad credit loans available for business purposes?

Postby Otto Dargan » Fri May 27, 2016 3:58 pm

Hi panda,

Each business loan application is unique because of the situation and strength of the business. This is a major reason why most lenders don't advertise their lowest interest rates. In some cases, they may not even show show them at all.

You can check out the business loan interest rates on offer on different loan products on our website but they too can be different for your particular situation.

Business loan interest rates are also not usually consistent with all lenders due to the difference in the way each lender perceives your risk as a borrower.

If you're looking to take out a business loan, you can call us and speak with one of our business loan specialists directly to find out what rate you can qualify for.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

panda
Posts: 5
Joined: Thu Sep 17, 2015 12:54 pm

Re: Are bad credit loans available for business purposes?

Postby panda » Sat May 28, 2016 10:13 am

Thanks, Otto. A list of estimated rates was all that I was looking for. Your website is really pretty good and I think I'll browse through it for now. Cheers.


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