If you’re a business owner in Australia with a less-than-perfect credit history, you may think a car loan is out of reach. However, the reality is that there are still options available—especially when you work with an experienced equipment finance broker who understands how to navigate the lending landscape. Whether you’re looking to finance a vehicle for business use or need reliable transport to keep your operations running smoothly, a bad credit score doesn’t have to be the end of the road.

In this article, we’ll explore how you can still secure a car loan with bad credit, what lenders consider when assessing your application, and how working with a broker like Capital Plus Finance can improve your chances.

Table of Contents

1. What Is Considered Bad Credit in Australia? 
2. Can You Get a Car Loan with Bad Credit? 
3. How to Improve Your Chances of Approval 
4. The Benefits of Using a Finance Broker 
5. Conclusion
   
   

What Is Considered Bad Credit in Australia?

In Australia, credit scores typically range from 0 to 1,200. Your score is calculated based on your credit history, including any missed payments, defaults, or bankruptcies. Here’s a quick breakdown:

• Excellent (800–1,200)
• Very Good (700–799)
• Good (625–699)
• Average (550–624)
• Below Average / Bad Credit (0–549)

A score below 550 is usually considered poor, and this may limit your access to traditional lending options. However, it doesn’t mean you’re out of options—especially if you’re seeking business finance through alternative lenders who take a more flexible approach.

Can You Get a Car Loan with Bad Credit?

Yes, it’s possible to get a car loan in Australia even with bad credit, particularly if you work with a broker who has access to a wide range of lenders. Many finance providers now offer bad credit car loans specifically designed for individuals or businesses with imperfect credit histories.

Lenders May Consider the Following Factors:

• Current cash flow of your business
• Length of time trading
• Asset value of the vehicle
• Loan-to-value ratio (LVR)
• Purpose of the vehicle (personal vs. business use)
• Guarantors or co-signers if applicable

Some lenders may offer secured loans using the vehicle as collateral, which lowers their risk and increases your chances of approval.

How to Improve Your Chances of Approval

While bad credit may limit your choices, there are still ways to strengthen your application and access better terms:

1. Provide Full Financial Documentation

Having up-to-date financial records, including bank statements and BAS, can give lenders a clearer picture of your business performance and cash flow stability.

2. Offer a Larger Deposit

A higher upfront deposit reduces the lender’s risk and may improve your chances of being approved for a car or equipment loan.

3. Consider a Guarantor

A guarantor with a strong credit rating can help secure the loan and potentially reduce the interest rate.

4. Demonstrate Business Purpose

Make it clear that the car is necessary for your operations—whether it’s for deliveries, site visits, or transporting equipment. This positions your request more like equipment finance, which may be viewed more favourably by lenders.

5. Work with a Finance Broker

Instead of applying to multiple lenders individually, which can negatively affect your credit score, work with a broker who knows the small business loans Australia market and can find the right lender for your situation.

The Benefits of Using a Finance Broker

Choosing to partner with an experienced finance broker—like Capital Plus Finance—can be a game-changer, especially when dealing with bad credit.

Here’s how a broker can help:

• Access to 40+ lenders with different lending criteria
• Tailored loan options based on your unique circumstances
• Guidance through the application process to avoid unnecessary credit hits
• Assistance with structuring your loan to support cash flow
• Support for business-related car and equipment finance needs

Unlike banks that often have rigid requirements, a broker can introduce you to lenders who take a more flexible and personalised approach to bad credit lending.

Conclusion

Having bad credit doesn’t mean your business growth has to stall. Whether you need a vehicle to keep operations moving or to improve your service delivery, there are financing options available—even with a poor credit history. By working with a trusted finance broker like Capital Plus Finance, you gain access to a network of lenders and expert guidance that can help you secure a suitable loan while protecting your business cash flow.

Need help finding a car loan with bad credit? Contact Capital Plus Finance today to explore your options and get your business moving forward.