Quick answer
If there are past credit issues, prepare a short, honest summary before the call: what happened, when, why, and whether it's been paid or settled. Have any settlement letters or payment evidence handy. Mention it at the start — past credit issues and ATO debt are considered case by case, and raising them early lets the specialist look at options that fit rather than discovering the problem halfway through.
Key points
- Say it first: a problem raised early is far easier to work with than one found later.
- Explain what happened, when, why, and what's changed since — in a few sentences.
- Have evidence that debts were paid or settled, if they were.
- Past credit issues are considered case by case; property security often widens options.
Most business owners who’ve been at it for a while have a scar or two. A supplier dispute that turned into a default. A tough year where a card or loan fell behind. An ATO balance that grew while the business was fighting to survive. None of that means the conversation is over. It means the conversation needs to start in the right place.
Why should I raise credit issues at the start?
Because the specialist is going to find out anyway, and when they do matters a great deal.
- Raised at the start, a past default becomes part of the picture. The specialist can steer straight to lenders and structures that consider it, and ask the right follow-up questions.
- Discovered at the credit check, it looks like something was hidden. Time has been spent on options that were never going to work, and trust takes a knock.
Past credit issues and ATO debt are considered case by case. That’s only possible if the case is on the table.
What will the specialist ask?
- What’s on your credit file? Defaults, judgments, overdue accounts, previous bankruptcy or insolvency.
- When did it happen? Recent issues weigh more than older ones.
- Why did it happen? A one-off event, a business downturn, a dispute, a personal circumstance.
- Is it paid or settled? And do you have evidence?
- What’s changed since? How the business trades now, what’s different about how you manage it.
- Is anything still in dispute?
How do I explain it clearly?
Write it down before the call. Three or four sentences, covering what happened, when, why, and where it stands now. For example (illustrative only):
“In early 2024 a major customer went into liquidation owing us about $60,000. We fell behind on a supplier account and it was listed as a default. We paid it in full in October 2024 and have the settlement letter. Since then we’ve spread our work across more customers and haven’t missed a payment.”
That’s clear, honest and focused on what’s changed. It gives the specialist exactly what they need.
What should I have ready?
| Have ready | Why |
|---|---|
| Your written summary of what happened | Keeps the explanation short and consistent |
| A recent copy of your credit report, if you have it | No surprises for either side |
| Settlement or payment letters | Shows the issue is resolved |
| Dispute correspondence, if relevant | Shows where the dispute is up to |
| Recent business bank statements | Shows how the business trades now |
| Property details, if you own any | Security often widens options for past credit issues |
The call-prep tool adds the right items for your situation when you tick “There are past credit issues or defaults”.
With your summary written, request your call-back here.
Do ATO debts show up on business credit files?
They can. The ATO may disclose a business tax debt to credit reporting bureaus when the business has an ABN, at least $100,000 is overdue by more than 90 days, and the business isn’t engaging with the ATO to manage it. The ATO gives 28 days’ written notice first, and keeping to a payment plan counts as engaging. If there’s an ATO balance in the mix, our ATO debt call prep covers what to have ready.
Which options are realistic?
It depends on the whole picture, but some patterns hold:
- Property security tends to widen options considerably, because the lender’s main comfort comes from the property and the exit. Property-secured business loans run from $20,000 to $5,000,000.
- Strong recent trading helps. Clean bank statements over recent months show the problem is in the past.
- Resolved beats unresolved. A default paid years ago is a different story from one still outstanding.
Unsecured options are possible for some owners with past credit issues, but the conversation will lean heavily on current trading.
What should I watch out for?
When your credit isn’t perfect, you may be more likely to meet offers that sound too good to be true. Scamwatch’s March 2026 alert on loan scams warns about upfront fees demanded before funds are released, requests for banking logins, and payments into personal accounts. No legitimate lender needs your password, and “guaranteed approval regardless of credit” should make you pause. Our page on business loan red flags covers more.
How long do past credit issues matter?
It depends on what happened and how it’s been handled since. Broadly, older issues that have been resolved carry less weight than recent ones that haven’t. A default paid off several years ago, with clean trading since, is a very different conversation from one listed last month and still unpaid.
What you can do now:
- Resolve what you can. If an old debt is still outstanding and you can settle it, that usually helps. Keep the settlement letter.
- Keep current accounts clean. Every month of on-time repayments and steady deposits adds to the story.
- Keep lodgements up to date. Unlodged BAS or returns cause more trouble than most credit history.
- Avoid a scatter of applications. Applying with several lenders at once can leave multiple enquiries on your file. A single well-prepared conversation is better — and requesting a Loan Hotline call-back doesn’t involve a credit check at all.
If you’re not sure what’s on your file, get a copy of your credit report before the call. It’s far better to know than to guess.
Ready to talk it through?
A past credit problem is a part of your story, not the end of it. There’s no credit check just to request a call, your details aren’t hawked around to a crowd of lenders, and a real specialist reads your situation — including the awkward bits — before ringing.
Please be upfront and accurate in the request, especially about the credit history, amount, state and any property you own. It’s the fastest way to be matched properly first time. Pick a window and we’ll call you.
Frequently asked questions
Can I get a business loan with bad credit?
Often, yes, depending on what happened, how long ago, whether it's resolved, how the business trades now and whether there's property security. Past credit issues are considered case by case.
Should I get my credit report before the call?
It's a good idea if you're not sure what's on it. You can request a copy from the credit reporting bodies. Knowing exactly what's listed means no surprises.
Can an ATO debt affect my business credit file?
It can. The ATO may report a business tax debt to credit reporting bureaus if the business has an ABN, at least $100,000 is overdue by more than 90 days and it isn't engaging with the ATO. It gives 28 days' written notice first.
Will asking for a call-back add another credit enquiry?
No. There's no credit check when you request a call-back or talk through options. That only comes up if you decide to apply.
What if the default was wrong or is being disputed?
Say so and have the correspondence ready. The specialist needs to know it's in dispute and where that process is up to.