Get back in business with a bad credit loan through Savvy.
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Businesses are not immune to the stresses of the modern world. Even if you or your business has a poor credit rating, Savvy can help with getting a bad credit commercial loan. If your business requires new performing or non-performing assets to keep serving customers who rely on your service or products, we can help find a loan that’s tailored to your needs. Whether it’s a chattel mortgage, hire purchase, or even an operating lease, you can compare options that help your business get the assets or equipment it needs.
As the saying goes, business isn’t about what you turn over, it’s what’s left over. Investment from a loan, even a sub-prime loan as a bad credit customer, is source of capital that can help your business with short-term or even long-term cash flow issues. We’ve helped businesses in retail, mining, construction, and professional services gain liquidity and a better financial standing. Get started with a free quote with us today.
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Commercial loans are very different to consumer loans because the National Consumer Credit Protection Act 2009 regulates the latter. This gives more freedom to borrowers to secure loans of up to 100% of the value of an asset, or even more. With the extra money, you can pay off maintenance, registration or insurance costs over the course of your loan. Business can also claim the GST on the purchase price, depreciation and interest paid on repayments, and even the GST on any balloon payment. However, these loans are usually secured, especially if you have bad credit. If you default, your lender can repossess your assets.
A balloon or residual payment is a portion of the loan left aside as a lump sum payable on the last regular repayment of your loan. This can vary anywhere between 20%-50%. The advantage to your business is that your regular repayments are lower than if you amortised the entire amount over the length of the loan term. This means you can pay off your amount quicker, but you will need to come up with the amount when the loan term is up. In car loans, this is an opportunity to trade your car in, give it back as a sort of lease, or pay the balloon and keep the car.
If your business has a bad credit rating, you should try to put up a deposit for it. It will help approval and even get you a better interest rate. Though you can finance a car without a deposit, it’s generally a better idea to put some money upfront to have ‘skin in the game.’ This puts less burden of risk on your lender that may influence your offered interest rate. Businesses with bad credit may not have this luxury, but it is worth thinking about.
Some mistakenly believe that a bad credit loan will mean the same high interest rate for the entire life of the loan. However, in many select cases, a good financial standing means you could refinance your bad credit commercial loan for a more favourable interest rate, or even a normal, “prime” interest rate. You may need to convince your lender of your improved financial standing, but it can save you a lot of money – or be used to fund even more asset purchases if you are looking at expansion.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
