How Your Personal Credit Score Impacts Business Finance
Last updated: 8 April 2025
In business, your numbers matter—and we’re not just talking turnover. If you're a company director, your personal credit score could make or break your next business finance approval.
This guide explains why lenders care, what "good" looks like, and how you can boost your chances of approval (even if your score isn’t perfect). At Casey Asset Finance, we believe knowledge creates confidence. Let’s dive in.
Why Do Lenders Look at a Director's Personal Credit Score?
If you’re applying for business finance—especially as a startup, sole director, or small business—your personal credit score becomes the anchor point for creditworthiness.
Why? Because if your business has limited trading history or thin financials, lenders rely on your personal financial behaviour to assess risk.
Here’s what your personal credit score can tell lenders:
Whether you pay bills and debts on time
How often you've applied for credit
Any defaults, court actions, or missed payments
Your credit utilisation and debt levels
Even in well-established businesses, the director’s personal credit can influence the decision—especially if the application requires a director guarantee.
What’s Considered a "Good" Personal Credit Score in Business Lending?
Most Australian lenders use Equifax or illion scores, which typically range from 0 to 1,200.
Here’s a simple breakdown:
800+ = Excellent (minimal risk)
700–799 = Very Good (strong application)
600–699 = Good (usually acceptable with some explanation)
500–599 = Fair (may require additional info or security)
<500 = Weak (challenging, but not always impossible)
Keep in mind, even if your score is below average, the story behind it matters. At Casey Asset Finance, we can often work around one-off issues or explain legacy events to lenders.
How to Strengthen a Business Finance Application (Even with Average Credit)
Lenders aren’t just looking at your number—they’re looking at the full picture. Here’s what you can do to improve your chances:
Provide clear documentation: BAS, bank statements, invoices, or contracts
Offer a deposit: Even 10–20% can reduce lender risk
Explain any issues upfront: Be honest about past defaults or delays
Use a broker: We know which lenders are more flexible with personal credit and how to position your application effectively
Wondering if you’d qualify?
Take our 20-second quiz — no credit checks, no pressure.
Does Your Business Need Perfect Credit to Get Finance?
No—but context is everything.
If your score is above 600 and your business is trading well, there are often multiple lenders we can work with. Even if your score is lower, the right structure (like providing a deposit or offering additional security) can make the difference.
We’ve helped many clients with less-than-perfect credit secure the funding they need to grow.
The key? Positioning your application clearly, strategically, and honestly. That’s where we come in.
What If You're Just Starting Out?
Startups often face the biggest credit scrutiny—especially when the business is brand new and there’s no trading history.
In these cases, your personal credit score carries even more weight. But it’s not the only factor. Many lenders will consider:
Director experience
Industry knowledge
Supplier quotes or contracts
Business plans and forecasts
Startups that come prepared are much more likely to get approved—even with a lower score.
Final Thoughts: Your Score Is Just the Start
Your credit score matters, but it’s only one part of the equation. The real question lenders are asking is: Can this business repay the loan?
At Casey Asset Finance, we help you build a clear, confident case—regardless of where you’re starting from. We speak your language, understand your story, and advocate for your best outcome.
At Casey Asset Finance, we make business finance simple, fast, and stress-free. If you’re even slightly considering your options, we’re happy to chat — no pressure.
