Can't get business loan in Australia

What if you can’t get a business loan in Australia?

You will probably agree when we say this – finance is the lifeline of every small, medium, and big enterprise. Without proper finance and cash flow, it is nearly impossible to streamline workflow and adjust cash overheads.
Although big enterprises can still manage without a proper loan, as it is easier for them to raise money, small businesses depend on small business loans for everyday finance requirements. From the office set up to employee salaries, every small business activity requires a considerably high amount of money, which is usually acquired through a small business loan in Australia.
However, several factors hinder the possibility of acquiring a small business loan due to which small businesses often find themselves in a difficult situation.

What To Do When You Can’t Get a Small Business Loan

When you are counting on small business loans for your office expenses, rejection is heartbreaking.
What should you do?
How should you proceed?
Well, the first step is to find the reason behind this rejection. Below we have explained some of the most common reasons for loan rejection.

    1. Low Credit Score

Your credit score plays a major role in loan application approval for any type of business loan. Although it is commonly believed that in the business loan, the credit score of the business owner should not be a factor, it usually is.
This is because banks believe that if you are not responsible enough to manage your personal finances, how can you manage business finances? This is the case even when your business is functioning for several years.
Also Read : How to get a business loan with poor credit?

  1. Risky Industry

Many banks reject loan applications when your industry is risky. Banks are looking forward to investing their money in a secure industry. And if you are working in industries like gambling or the restaurant business, banks are less likely to approve your loans.

  1. Lack of Collateral

A lot of small business loan lenders require you to present collateral for them to offer a long-term business loan. So if you don’t have any feasible collateral, it may be hard for you to acquire a long-term, high-amount loan.

  1. Incomplete Application

Unfortunately, one of the major reasons for long-term business loan rejection is an incomplete application. If you have failed to offer detailed information correctly, such as business plan, statements, tax returns, projections, etc., your application will be rejected.

Identified the reason, what to do now?

If you are unable to get a small business loan in Australia through any bank, here are some tips that you can use to improve your chances.

    1. Improve your Credit Score

To improve your credit score, start paying your bills without any delays whatsoever. For example, pay your credit card bill on or before the due date.
Another method is to apply for a new credit card as it can improve your credit score. However, don’t apply for too many credit lines as it can lead to several hard enquiries on your credit score. This will reduce your credit score, and the bank or lending organisations will start seeing you as a credit hungry person.

  1. Improve your Cash Flow

To improve your cash flow, improve the structure of your inventory, such as reducing over buying of products.
You can also improve your cash flow by improving your billing cycle. Ask your customers to shift and adjust payment cycles so you can pay the bills on time.

  1. Use Alternate Financing 

One of the most feasible options is to look for alternate financing. There are multiple alternate financing organisations that can offer you a much better deal than the bank. Read the next section to understand how.

Alternate Financing Option

Imagine this:
John applied for a long-term business loan because he was facing issues with the cash flow. Most of his payments are due next month, but he is struggling to make ends meet. Employee salaries are getting delayed, supplier payments are on hold, and office expenses are ever-increasing due to an increase in the workforce. While John has tried improving the cash flow through several methods, he was unsuccessful in his attempt. Thus, he finally decided to take a small business loan for two years to improve the working capital.
However, this was not the end to his misery. His loan application was rejected by the bank due to unknown reasons. He filed the application again, only for it to be rejected again. But just when he was about to give up all hope, a fellow business owner asked him to try alternate financing options.
Hence, he found Hubbe. It is an online platform which offers unsecured loans to small business owners. Here are the benefits of taking a loan from Hubbe.

Reduced Risk

Unsecured loans don’t ask you to keep any collateral for acquiring the loan, such as family real-estate or other possession. You can take the loan without keeping any of the family or personal assets at stake.

Easy Repayments

Since it is an unsecured business loan, the time period is 3-24 months. The repayment instalments are usually fixed before the loan approval, which allows you to assess your repayment capabilities. You can choose a feasible plan and repay the loan without any hassle. Additionally, there are no hidden interest charges.

Calculate repayments on your business loan


  1. Quick Access

Every small or big business requires proper working capital to work effectively and even to acquire a loan from the bank. With Hubbe, you can acquire a loan without keeping any security. You can utilise the small business loan to improve working capital instead.

  1. Supportive Lenders

Our lenders are not only there to support you financially, but they are also equipped to effectively guide you in business. The specialist lenders at Hubbe have a great record of guiding businesses with several financial business concerns.

Checklist for Alternative Finance

  • Improve your credit score and credit lines.
  • Collect necessary business documents such as lease documents, shareholder agreement, balance sheet, accounts ledger, etc.
  • Collect payment records and tax documents of the past six months or year.
  • Prepare financial statements for the past six months.
  • Prepare a business plan.
  • Prepare your personal documents such as driver’s license, bank statements, etc.


Increase Your Chances of Getting Finance 

To improve your chances of procuring a small business loan analyse your requirements beforehand. After you calculate the amount of money you need for proper cash flow, apply for the short-term loan. Avoid taking extra because you ultimately have to repay it back with some interest. Hence, read the above details about alternative loans and apply for a loan at Hubbe now.