How much can I borrow for my business?

How lenders work out how much a business can borrow

There are two ceilings on every business loan, and the lower one wins. The first is security: how much a lender can lend against property, an asset or receivables. The second is serviceability: how much repayment the business can afford from what it earns. This estimator gives you a planning figure for each, so you walk into a conversation with a realistic number instead of a hopeful one.

The property ceiling: usable equity

For a property-secured loan, the lender multiplies the property's value by its maximum loan-to-value ratio, then subtracts everything already owing against it. What's left is usable equity. A second mortgage or caveat loan uses exactly this gap, sitting behind the first mortgage. Property-secured business loans in the market we work in run from $20,000 to $5,000,000 across first mortgages, second mortgages and caveats over residential or commercial property.

What moves the property ceiling	Why
Property type	Houses and units in established areas are easier to sell, so lenders usually allow a higher LVR than for commercial, rural or specialised property.
Loan position	A first mortgage gets paid first if the property is sold. Second-ranking lenders take more risk and often cap total lending lower.
Valuation	The lender's valuer sets the value used, which can differ from your estimate or an online figure.
Exit and term	Short-term private lending looks hard at how the loan will be repaid: a sale, a refinance or incoming funds.

The cash-flow ceiling: repayments you can carry

For unsecured and cash-flow lending, typically $5,000 to $500,000 for trading businesses, the size of the loan is driven by turnover and what the bank statements show. Lenders look at average monthly deposits, how steady they are, existing repayments, overdrawn days and dishonours. The estimator mirrors the idea from your side: take your real monthly surplus, commit only part of it, and see what total repayments that supports over the term. If you have a quote, enter its total cost of finance and the estimator converts the repayments into the amount they would support.

Making the most of your borrowing power

• Pay down or consolidate small, expensive facilities before applying; every existing repayment reduces your surplus.
• Keep the business account clean for three to six months: no dishonours, no unexplained transfers.
• Lodge your BAS and tax returns, or have an ATO payment plan in place.
• Ask for what the job needs, not the maximum. A sized-to-purpose request reads better to a credit assessor.

The how much can I borrow guide explains the lender's maths in more depth, and what lenders look at covers the rest of the picture.

Turn your estimate into a real figure

An estimate is a starting point. The real number depends on the lender's valuation, credit policy and how your trading looks on paper. Send us a 60-second enquiry and a specialist will tell you which lender's rules give your business the most room. There's no credit check to ask, your details aren't broadcast to a pile of lenders, and filling in the form accurately means we can match you properly the first time.

Borrowing power: questions owners ask

How much can I borrow for my business?

It depends on two things: what the lender can secure and what your cash flow can repay. Property-secured business loans range from $20,000 to $5,000,000 and are limited by the equity in the property at the lender's maximum loan-to-value ratio. Unsecured and cash-flow options typically run from $5,000 to $500,000, sized on turnover and bank statements. This estimator checks both sides.

What is LVR and which one should I choose?

LVR, or loan-to-value ratio, is the total lending secured on a property divided by its value. Lenders set a maximum LVR that depends on the property type, its location, the loan position (first or second mortgage) and the borrower. Residential security usually allows a higher LVR than commercial or rural property. Try a conservative setting first; a lender will confirm its own maximum after a valuation.

Does the estimator take my existing mortgage into account?

Yes. Enter what is currently owing on every loan secured over the property. Usable equity is the property value multiplied by the LVR you choose, minus everything already owing. A second mortgage or caveat lender sits behind the first mortgage, so it looks at exactly that remaining equity.

Why does the cash-flow check ask for my monthly surplus?

Because a lender wants to see that repayments fit inside what the business actually earns. Your surplus is what's left after wages, rent, suppliers, tax, super and existing repayments. Committing only part of it leaves room for a slow month. The estimator shows a repayment ceiling at the share you choose, not a lender's assessment.

Will using the estimator affect my credit score?

No. It runs entirely in your browser and nothing is sent anywhere. Sending us an enquiry doesn't involve a credit check either; one only happens if you decide to proceed with a particular lender.

Why doesn't it show an approval chance or a rate?

Because neither can be known from a few numbers. Lenders also weigh credit history, industry, trading record, the property's valuation and the purpose of the funds, and every loan is priced on that full picture. The estimator gives you a realistic ceiling to plan around, not a prediction.