Glossary
Australian Credit Licence
Also called: ACL, credit licence
An Australian Credit Licence is issued by ASIC to businesses that engage in consumer credit activities, such as lending to individuals for personal, domestic or household purposes or arranging that credit. Licensees must meet conduct obligations.
An example
A borrower checking a lender before applying searches ASIC's professional registers to see whether the lender holds an Australian Credit Licence or is an authorised credit representative of a licensee.
Why it matters
Lending for business purposes is often not regulated consumer credit, so not every lender needs a licence. Knowing whether a loan is regulated tells a borrower which protections apply.
Points to check
You can search ASIC's professional registers by name or licence number to check whether a business holds a licence and what it covers. A business lender may not need a licence for loans that are not regulated consumer credit, so the absence of a licence does not always mean something is wrong. It does mean consumer credit protections may not apply. Ask the lender to state in writing whether it holds a licence and how it classifies your loan.
Related terms
Further reading: ASIC