Your Equifax score is one of the first numbers a bank looks at when you apply for a business loan in Australia — but it is not the only one, and it is not always the most important. Understanding which lenders care about score, which weight cash flow more heavily, and where your score sits on the threshold map saves you time and unnecessary credit enquiries.
How Equifax Scores Work in Australia
Equifax (formerly Veda) is the dominant credit bureau in Australia. Scores run from 0 to 1,200, broadly grouped as:
| Score | Band | Practical meaning |
|---|---|---|
| 800–1,200 | Excellent | Best rates available, almost any lender |
| 700–799 | Very good | Most banks and alternative lenders approve |
| 625–699 | Good | Bank approval likely with proper documentation |
| 500–624 | Average | Banks may decline; alternative lenders fine |
| Below 500 | Below average | Banks decline; performance-based lenders only |
A score is built from your repayment history, defaults, court judgements, credit enquiries, and the age of your credit file. The Comprehensive Credit Reporting (CCR) regime introduced in 2018 means lenders now see the full picture, including months you paid on time as well as months you missed.
Bank Thresholds: Where the Hard Cut-offs Sit
Major Australian banks (CBA, NAB, ANZ, Westpac) typically apply the following score thresholds to not asset backed business lending:
- 600+ — minimum considered, often with conditions
- 650+ — eligible for standard rates
- 700+ — eligible for the bank’s best published rate
Below 600, a not asset backed bank product is rarely on the table regardless of how strong your cash flow is. Banks may still consider secured lending below this threshold if you offer property security with sufficient equity.
Alternative Lender Thresholds: Cash Flow First
Performance-based alternative lenders use a different framework. Velociti Capital, for example, weights:
- Cash flow consistency — most recent 6 months of bank statements
- Revenue strength — minimum $5,000 monthly turnover
- Trading history — minimum 6 months active operations
- Equifax score — reviewed but not the primary filter
In practice this means a business with a 480 Equifax score and consistent $40,000/month revenue often receives an offer where a 720 score with patchy revenue does not. The score is a sanity check, not a gatekeeper.
If your score is below 500, your best path is a performance-based lender. The full process from application to funded is typically the same day. See our guide to getting a business loan with bad credit for the practical playbook.
What Hurts Your Score
The fastest score killers in Australia are:
- Defaults — listed when an account is 60+ days overdue and over $150
- Court judgements — small claims court rulings against the business
- Multiple credit enquiries — applying to many lenders in a short window
- ATO debt with payment plan in arrears — visible since CCR took effect
- Late comprehensive payments — 30+ days late on a credit card or loan
A single default can drop a score by 50–100 points. Multiple in a 12-month window compound rapidly.
What You Can Do Right Now
If you need funding and your score is borderline:
- Pull your Equifax file — free once a year via equifax.com.au. Confirm there are no errors.
- Avoid spraying applications — every enquiry costs you a few points.
- Apply where your score is acceptable — if you are under 500, do not waste enquiries on banks.
- Address open defaults if possible — a paid default still shows, but is more forgivable than an open one.
- Strengthen the rest of your file — clean six months of bank statements with no dishonoured payments and consistent revenue tells the story banks miss.
Performance-Based Lending in Practice
Velociti Capital’s assessment runs primarily on bank statement analysis. The Equifax score is checked, factored, and weighted, but it does not gatekeep approval. If you have:
- An active ABN
- 6+ months of trading history
- $5,000+ monthly revenue
- Consistent cash flow over the recent 6 months
…then your application is assessed on its commercial merits regardless of where your score sits. Loans from $5,000 to $350,000 are approved within 2–5 hours and funded the same day.
Apply now or read the full bad credit business loan guide.
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