Credit
Business loans with bad credit in Australia
A poor credit history doesn't automatically rule out property-secured finance. Here's how lenders like Alphacon assess a deal when the credit file is the problem, not the security.
A default, a past bankruptcy, or a string of missed payments will close most bank doors immediately, regardless of how the business is actually performing today. That's a function of how banks assess risk - a credit score is a fast filter, not a considered judgement - and it's exactly the gap private, security-first lending is built to fill.
Why banks decline on credit alone
Bank credit policy is largely automated at the first stage: a credit score below a threshold, or a default on file, will often decline an application before a human ever looks at the deal. It doesn't matter whether the default is paid, disputed, or years old - the score does the filtering.
How security-based lending works instead
Alphacon Fast and Alphacon Line don't run a credit score test at all - lending is assessed on the property offered as security, the resulting LVR, and a credible exit, with income handled through self-declaration. A past bankruptcy or credit impairment doesn't rule a deal out, because the assessment isn't built around the credit file in the first place.
- Security - Australian property that can carry a registrable mortgage
- LVR - the loan amount against a supportable valuation, within Alphacon's maximum
- Exit - a credible plan to repay or refinance within the loan term
- Purpose - genuine commercial or investment use for a company or trust, not personal consumer credit
A credit score describes the past. Security and exit describe whether this specific loan actually gets repaid.
What it costs
Property-secured lending without a credit check is priced higher than a clean-file bank loan to reflect the risk being carried differently - typically through a risk fee alongside the interest rate rather than a blanket credit-score penalty. The stronger the security position and the lower the LVR, the more that pricing comes down.
A poor credit file changes the type of lender you need, not whether finance is available. For a business with sound security and a workable exit, that's a solvable problem rather than a dead end.
Assessed on security, not a credit score
Alphacon Fast lends $200,000 to $10,000,000 with no credit check - self-declared income, same-day indicative terms.
Explore Alphacon FastGeneral information only
This article is general in nature and does not take your circumstances into account. It is not financial or credit advice. Alphacon Capital writes business-purpose loans secured by property.
