Quick answer
A Part IX debt agreement is a formal arrangement with creditors under the Bankruptcy Act. It is recorded on the National Personal Insolvency Index and on credit reports for a period. Business finance is very difficult while an agreement is current, but after it is completed, lenders consider time since completion, conduct since and security, with property loans often the most realistic route.
Key points
- Debt agreements are formal insolvency arrangements under the Bankruptcy Act
- Borrowing during a current agreement is very restricted
- After completion, clean conduct and time rebuild access
- Property security widens options considerably
What a debt agreement means for lenders
A Part IX debt agreement lets a person in financial difficulty repay creditors an agreed amount over time, avoiding bankruptcy. It is still an act of insolvency, and lenders treat it seriously. While it is running, borrowing is heavily restricted. After completion, it remains visible on records for some time, and many automated lending systems decline any application that shows one.
How lenders view it over time
| Stage | Typical lender response |
|---|---|
| Agreement current | Very limited options; check with your administrator |
| Recently completed | Mostly property-secured or guarantor-supported loans |
| Completed some years ago, clean since | Specialist unsecured lenders may consider |
| Long ago, strong business since | Treated as background with a good explanation |
Building a strong application
- Keep your completion certificate and provide it with any application.
- Show clean conduct since: on-time payments, no new defaults, steady banking.
- Explain the circumstances in a short note: what happened, how you resolved it, what is different now.
- Use a dedicated business account to make trading easy to read.
Routes that may work
After completion, property-secured loans are generally the most accessible, starting at $20,000 and reaching $5,000,000, because equity and a sensible plan carry the decision. No valuation is needed before approval. Equipment finance, where the asset secures the loan, can also be accessible. Unsecured cash flow lenders tend to want more time since completion.
An illustrative example
A tiler entered a debt agreement after a builder he worked for collapsed owing him substantial sums, leaving him unable to pay suppliers. He completed the agreement, rebuilt his own business with a small team and kept a clean record for several years. When he needed funds for a work vehicle and tools to take on a larger contract, equipment finance with a modest deposit was approved after he provided the completion certificate and a short explanation.
What not to do
Do not hide the debt agreement. It will appear on the records lenders check, and an undisclosed agreement destroys trust immediately. Do not apply to many lenders at once hoping one will miss it; each application can add an enquiry. And do not take on short-term, high-cost debt to prove you can borrow. A single, well-structured loan repaid on time does far more for your record than several small facilities juggled at once.
Start the conversation
Take a minute to enquire and tell us when the agreement was completed and what you need now. Asking needs no credit check, a real lender reads it, and there is no lead selling. Ask what is possible.
Frequently asked questions
Can I get a business loan during a debt agreement?
It is very difficult, and there may be rules about incurring new debts. Speak to your debt agreement administrator first.
How long does a debt agreement affect my credit?
It appears on the National Personal Insolvency Index permanently and on credit reports for a period. The record notes when it was completed.
Is a completed debt agreement better than bankruptcy for lenders?
Lenders view both as serious insolvency events. What matters most is time since completion and conduct afterwards.
What helps after completion?
A completion certificate, clean banking, on-time repayments on any credit since, and property or a guarantor for the first loan.
Prefer to start now? Enquire here
About 60 seconds. No credit check when you first enquire, and a person who handles unusual deals calls you back.