Your credit score plays a key role in determining financial opportunities, both personally and for your business. But what exactly is a credit score, and how does it affect your ability to secure funding? Whether you're looking to check your score or need funding despite having bad credit, this guide has you covered.

What is a credit score?

A credit score is a numerical representation of your creditworthiness, or in simpler terms a number that represents the likelihood you pay your bills on time. In New Zealand, scores typically range between 0 - 1,000.

But what factors influence this number?

Your credit score is shaped by your financial history, including loans, repayments, defaults and other credit activities. Lenders use it to assess the risk of providing funds to you or your business.

Do all businesses have a credit score?

Not all businesses automatically have a credit score—it depends on their financial activity. If your business has taken out loans or set up supplier credit arrangements, a credit rating may be created.

For sole traders, personal credit scores often play a key role in financing, while companies can build a separate business credit file through their financial transactions. Establishing a credit history is essential for businesses seeking to demonstrate reliability to lenders.

How do I check my credit score in New Zealand?

Checking your credit rating in New Zealand is straightforward and usually involves a simple form submission.

There are 3 credit reporting agencies in New Zealand: Centrix, Equifax and illion. You can get a free credit report from any of these 3 agencies.

Many financial institutions also offer free credit score checks, making it easier than ever to stay informed about your credit health.

Can I get a business loan with a bad credit score?

Yes, you can get a business loan even with a low credit score, as long as you work with the right lender.

Traditional banks and other lenders often rely heavily on strict credit score requirements, typically setting a minimum threshold of around 500. If your score falls below this, getting approved for a loan can be nearly impossible.

Bizcap, however, takes a different approach. Specialising in helping businesses with bad credit, Bizcap doesn’t impose minimum credit score requirements or conduct upfront checks. Instead, they use a unique credit assessment model that evaluates cash flow, business potential and your overall financial situation.

With Bizcap, you can access the funding you need, regardless of past credit challenges.

What credit score is required for a business loan?

The credit score needed depends on the lender:

  • Traditional Banks: Typically require scores above 600 and may decline applicants with lower scores.
  • Alternative Lenders: Focus more on cash flow and trading history rather than the credit score itself, making funding accessible even with poor credit
  • Loan Type and Size: Higher loan amounts or longer terms may have stricter requirements.

At Bizcap, your credit score isn’t the sole factor considered, offering flexibility that helps businesses access funding even with less-than-perfect scores.

How to apply for a business loan in New Zealand with bad credit?

Applying for a business loan with a low credit score can feel challenging due to the strict criteria many lenders impose. This often leaves businesses struggling to secure the funds they need.

Bizcap makes the process easier with no upfront credit checks and a simple application process. Here’s how to apply:

1. Ensure You Meet Our Eligibility Criteria

  • An active NZBN
  • At least 4 months of trading
  • A minimum monthly revenue of $12,000

2. Complete a Quick Application Form

  • Fill out our simple, 3-minute online application and upload your bank statements to ensure we can process your application that same day.

3. Receive an Initial Offer Fast

  • Eligible businesses could receive an offer within as little as 3 hours—we just need a few details about your business + bank statements to get started.

4. Review and Accept Your Loan Offer

  • Once satisfied, let us know! Additional documents may be requested to finalise the process depending on your unique circumstances.

With Bizcap, there’s no need to worry about credit scores holding you back. Click here to learn more about the documents required and start your application today!

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