Switchboard Finance | Business & Equipment Loans Australia

Arrears

Arrears refers to missed or late repayments on a loan, credit card, lease, or finance facility. Lenders assess arrears to determine whether a borrower has maintained consistent repayment behaviour across Vehicle Finance, Equipment Finance, Business Loans, and Low Doc Loans. Related terms: Default, Repayment History, Credit File. Relevant blogs: What Lenders Look For With Defaults, Bad Credit Business Loans 2025, Red Flags a Business Loan Is Bad.

Why Arrears Matter

Arrears are a red flag for lenders because they indicate repayment risk. Even small arrears can affect approval outcomes for borrowers applying through the Tradie Hub, Truckie Hub, Café Hub, and Whitecoat Hub. Many lenders decline applications if arrears appear in the last 3–6 months, especially for Low Doc products.

What Arrears Show

Missed or overdue repayments.
Late payments on loans, credit cards, or utilities.
Recent financial stress or cashflow issues.
Higher risk for Business Lines of Credit.
Potential for lower approval odds in Working Capital Loans and Invoice Finance.

Official info: asic.gov.au

Do arrears affect loan approval?

Yes — recent arrears are one of the main reasons lenders decline applications.

How long do arrears stay on my record?

They may show in your repayment history for up to 24 months depending on the reporting body.

Can I get a loan if I’m currently in arrears?

Some lenders may consider it, but Low Doc approvals are unlikely until arrears are cleared.

Do arrears impact my credit score?

Yes — repeated arrears can significantly reduce your score and affect future borrowing capacity.

Can arrears be corrected?

Yes — if they were reported incorrectly, you can dispute them with the credit bureau.