phone +64 450 639 587
email info@bkbrokers.com.au
phone +64 450 639 587
email info@bkbrokers.com.au
Posted By: Sylvia Flores - Senior Commercial Finance Writer at B.K Brokers | Date: 02/06/2025 11:54:44 PM
When you're applying for a business loan, your credit score can be one of the most decisive factors a lender considers. But it’s not just your business credit profile that matters—your personal credit score can also come into play, especially for newer businesses or sole traders. In this article, we break down how credit scores influence business loan approvals, what lenders look for, and how to improve your credit health to increase your chances of approval.
A credit score is a numerical representation of your creditworthiness, based on your financial history. In Australia, credit scores generally range from 0 to 1,200. The higher the number, the more trustworthy you appear to lenders.
For businesses, credit scores are based on the company's financial activity, including credit enquiries, defaults, late payments, and the overall health of your accounts.
For individuals, your personal credit score reflects how well you've managed personal debts like credit cards, home loans, and personal loans.
Established businesses with a clear trading history and registered ABN may be assessed primarily on their business credit profile.
Startups or sole traders often undergo personal credit checks, especially if the business lacks trading history or financial statements.
In many small business loans, especially unsecured options, both personal and business scores may be reviewed.
Here’s how your credit score can influence loan outcomes:
| Credit Score Range | Impact on Application |
|---|---|
| 800 – 1,200 (Excellent) | Access to the most competitive interest rates and high approval odds |
| 700 – 799 (Very Good) | Generally strong chance of approval with favourable terms |
| 500 – 699 (Average) | Moderate risk; may be approved with higher interest or security |
| Below 500 (Low to Poor) | Higher risk category—approval is challenging and terms may be restrictive |
In addition to your score, lenders consider other factors such as cash flow, time in business, industry risk, and loan purpose.
Improving your credit score isn’t a quick fix, but consistent habits can make a significant difference over time:
Pay bills and loan instalments on time – even a few late payments can drag down your score.
Limit the number of credit enquiries – applying for too many loans or credit cards in a short span can be a red flag.
Reduce existing debt – especially credit card balances and other revolving credit.
Correct errors on your credit report – you’re entitled to request a free copy of your credit file and dispute any inaccuracies.
Avoid defaults – settle any overdue accounts before they escalate.
At B.K Brokers, we work with lenders who understand that a credit score is only one part of the picture. Here’s how we assist:
Credit assessment guidance – we help you understand how your credit score fits into your broader financial profile.
Lender matching – we match you with lenders who are more flexible or suited to your unique circumstances.
Pre-application preparation – we can suggest steps to strengthen your application, such as consolidating debts or providing supporting documentation.
Access to specialist lenders – for clients with less-than-ideal credit, we have access to niche lenders who may still offer competitive products.
Credit scores play a major role in business loan approvals, but they aren’t the whole story. With the right advice, preparation, and lender choice, you can still secure the funding your business needs—even if your score isn’t perfect.
Need help navigating your credit profile?
Contact us today for a no-obligation chat—we’ll help you understand your options and put your best foot forward.
Tags: business credit score, personal credit score, business loan approval, improve credit score, credit score Australia, credit health tips, credit score for small business, bad credit business loans, how to get a business loan, loan brokers Brisbane, B.K Brok
Back to Blog