Can I get a business loan if my personal credit score isn’t great?
By Michael Pajar, Director
Last updated: December 2025
If your personal credit isn’t great, it’s normal to feel unsure.
You might be thinking:
“Will I get declined?”
“Will this hurt my credit more?”
“Should I even apply?”
I hear this every week from business owners.
After reviewing hundreds of real business bank statements and bad credit situations, one thing is clear:
Bad personal credit does not always mean no.
But it does mean you need to move carefully and understand what lenders really look at.
This page explains how lenders usually assess bad personal credit, what helps, what hurts, and how to check your options safely before applying.
What lenders usually mean by “bad personal credit”
Bad personal credit can come from:
missed or late payments
defaults or payment plans
too many credit checks
old personal money problems
Some of these issues are small.
Some are more serious.
Lenders don’t just look at a score.
They look at what’s happened recently and whether your business can support a loan now.
What matters more than your credit score
This surprises a lot of people.
Most business lenders care more about:
your recent business bank statements
how money flows in and out
whether repayments are affordable
whether things are stable or improving
If your recent activity looks controlled and consistent, there may still be options — even with personal credit issues.
You can see how lenders assess different credit situations here:
👉 Bad credit business loans
The main things lenders look at when credit isn’t great
1) Recent bank activity
This is the biggest factor.
Lenders look for patterns like:
bounced payments
overdrawn days
frequent negative balances
gambling or large cash withdrawals
One bad week is very different from an ongoing pattern.
2) Can the business afford the loan?
Even with bad credit, a loan can work if:
repayments clearly fit cash flow
there’s money left after bills and tax
the business isn’t just “getting by”
3) Business stability
Things that help your position:
steady income
repeat customers
regular deposits
signs the business is holding or improving
4) How recent the credit issues are
Older problems usually matter less.
Recent missed payments or new issues carry more weight.
5) Too many loan applications
This catches people out.
Applying everywhere can:
reduce your options
raise red flags
cause lenders to say no faster
6) A clear explanation
If something went wrong and it’s now resolved, that helps.
Lenders understand:
illness or family issues
short business slowdowns
one-off events
They don’t like surprises or unclear stories.
What to do before you apply (important)
Before applying anywhere, it’s usually worth slowing down and doing this first:
check your credit file for errors
stop making multiple applications
clean up recent bank activity where possible
keep personal and business accounts separate
know what repayment actually feels comfortable
This step alone can protect you from a hard decline.
What lenders usually need to assess a loan
Most lenders will ask for:
business bank statements (often 6 months)
ID
business details like ABN and industry
sometimes BAS or simple summaries
If someone says none of this matters, be careful.
How to check your options without hurting your credit score
If you’re unsure where you stand, the safest first step is an eligibility check.
At CASEY, this check is a soft check, which means:
no impact on your credit score
no pressure
no obligation
Most people don’t want promises — they just want clarity.
This lets you understand what’s realistic first, then decide what makes sense.
Check Eligibility (30 sec)
100% free · No credit score impact
When waiting briefly can actually help
Sometimes it’s smarter to pause for a short time.
For example, if:
payments just bounced
the account recently went negative
a small issue can be fixed quickly
Even a short reset can improve how things look.
Final word
Bad personal credit doesn’t define your business.
What matters most is:
how the business is trading now
whether a loan is affordable
and checking things the right way
If you’re unsure, start with an eligibility check.
It gives you answers without making things worse.
Check Eligibility (30 sec)
100% free · No credit score impact
