On this page
On a small screen, scroll the table sideways to see every column.
| Situation | First step | Before borrowing |
|---|---|---|
| An entry looks wrong | Request the report and seek correction | Keep supporting documents and confirm the corrected position. |
| A past issue has been resolved | Prepare the history and evidence of current trading | Ask whether the lender accepts that type of event. |
| Payments are already being missed | Speak to existing creditors and a qualified adviser | Test whether another repayment would be manageable. |
| A provider promises guaranteed approval | Verify the business and obtain written terms | Do not mistake marketing or prequalification for a binding offer. |
Make the credit problem specific
Prepare a short account of the event, its date, the amount involved, whether it has been resolved and what changed afterwards. Attach evidence where available. A lender can assess a documented history more usefully than a general request for a “bad credit loan”.
Keep that history separate from the current repayment case. A resolved default does not establish that today's borrowing is affordable; equally, a past problem does not describe every part of a business that is now trading well. Recent bank activity, existing commitments and expected receipts should explain the present position.
Before a formal application, ask whether the lender considers that type of credit event and when a credit enquiry occurs. If the problem is an incorrect entry, follow the reporting provider's correction process. Paying an intermediary is not a guarantee that accurate adverse information can be removed.
Work out which obstacle the application needs to address
A credit event can sit alongside other reasons a lender declines an application: insufficient trading history, a restricted industry, a purpose outside policy or repayments that do not fit the business. Ask what the lender can explain. Changing the target lender without understanding the obstacle can produce another unsuccessful application using the same weak evidence.
If the business has recovered from a past disruption, show the recovery in records rather than adjectives. Explain the period affected, payments brought up to date, commitments still outstanding and how recent trading supports the proposed debt. Separate recurring sales from a one-off owner contribution. If the event remains unpaid, describe the current arrangement accurately; “resolved” and “being repaid” mean different things.
Commercial and personal credit information can be considered differently. The OAIC's commercial-credit guidance explains that the consumer credit-reporting rules do not apply identically to commercial information (checked 5 October 2026). Ask which report is being used and follow the relevant correction process rather than assuming the same access rules or score scale everywhere.
Assess the alternative without accepting every trade-off
Offering an asset, a deposit or a guarantor can change a proposed transaction, but none removes the need for affordable repayments. If a lender offers a smaller amount, establish whether the project still works. Receiving too little to complete a fit-out can leave the business with debt and unfinished premises.
If the alternative is a much shorter term, model the new deductions using ordinary and quieter trading. A loan can cost fewer dollars in total yet demand more cash each week. Property security can also move a business shortfall onto a personal asset. Discuss that consequence separately from whether the application is more likely to be considered.
Compare the cost in dollars
Request the amount you will actually receive, total scheduled repayments, fees, debit dates and early payout terms. A lower instalment may simply spread debt over longer. A factor charge or monthly rate should not be presented as if it were an annual interest rate.
For an illustrative offer, receiving $20,000 and repaying $25,000 means a $5,000 difference before any separately charged costs. Whether those payments fall over six months or two years changes the burden and the effective annual cost. This example is not a lender quote.
Security changes the risk you carry
A lender may ask for collateral or a personal guarantee. Property equity does not remove the need to repay, and an unsecured label does not exclude personal liability. Have the relevant documents reviewed before accepting a commitment you do not understand.
Before paying for an introduction or accepting an offer
Identify the business arranging the finance and the proposed lender. Obtain a written explanation of any upfront fee, what service it buys, when it is refundable and whether payment depends on funding. A fee for work performed and a promise that payment will secure approval are different claims.
Read the conditions remaining on any preliminary approval. Check whether documents, security, valuations or further assessment are outstanding. A verbal statement that funding is likely should not be used to make an unconditional purchase or promise a creditor payment on a fixed date.
Keep the proposed repayment case separate from pressure to act quickly. Ask for a written quote and time to understand the security and guarantee documents. If the explanation changes when you ask about the net advance or total payment, pause until those figures reconcile.
If the timing is wrong for another application
Use the interval to address the actual weakness: correct records, complete accounts, reduce an existing commitment under an agreed plan or gather a clearer trading history. A smaller project or staged purchase may reduce the amount needed. These steps do not promise future approval; they give the business a more credible position to assess.
If repayments are already unmanageable, financial counselling can help assess the whole debt picture. Taking another loan simply because it is available can remove the cash needed to recover. The relevant outcome is a sustainable operating position, even when that means postponing the new borrowing.
When another loan is the wrong next step
If borrowing is needed to keep paying existing loans, map all the debts and speak to creditors before adding more. The Small Business Debt Helpline offers free, independent and confidential financial counselling for eligible small business owners experiencing financial difficulty.
A workable offer needs to survive a slower sales period or a late customer payment. If it only clears old debts while creating a new shortfall, seek help with the whole debt position before accepting it.
What an adverse-credit enquiry needs to establish
Bizcap describes considering applicants with imperfect credit, but it still assesses cash flow and the application. Its published business-loan criteria include four months trading and $12,000 monthly turnover, checked on 10 October 2026. Its overall $5,000–$7.5 million range spans different funding and security arrangements; it is not an unsecured entitlement. A personal guarantee is required.
Ask which credit events the provider will consider, whether an initial enquiry creates a credit-file entry, the amount actually offered and the complete repayment cost. Another lender’s credit-score scale is not a transferable pass mark. A promise of guaranteed approval before assessment deserves scrutiny.
Check the legal provider and the actual loan purpose
ASIC’s 2023 Cigno/BHF case concerned a particular unlicensed consumer-credit model and resulted in injunctions. A separate 2026 announcement reports combined penalties of $7 million against Cigno Australia, BSF Solutions and their directors. These are distinct entities and proceedings; they are not evidence of an approved business-loan option.
A business-purpose declaration must reflect what the money will actually fund. Readers with an existing agreement should use account-specific documents and appropriate independent help; a comparison page cannot determine an individual balance or legal obligation.
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