It is a question we often get asked. A client wants to borrow finance for their business or a property project but has a poor credit history. They are therefore concerned that they might be declined by lenders for this reason.
The short answer is that lenders do take an applicant’s credit history into consideration. So, a poor credit history can have an adverse impact on any application for business finance. However, it is not the only consideration.
Amongst other aspects lenders will consider the amount of borrowing, security provided, income and expenditure, and the overall concept of the deal. So, if an applicant has a poor credit history, it is not always a barrier to finance.
If you are concerned about your credit history and what this might mean for your borrowing potential, speak to your local ASC director. They might be able to look at options which could secure finance which works for you.