How much can my small business borrow?

“How much can I get?” is a fair question, and the answer depends less on a single number than on the route you take. Each type of business finance has its own way of setting a limit — and every one of them is ultimately capped by what the business can afford to repay. Understanding how limits work helps you aim for an amount that’s both achievable and sensible.

The three main ways limits are set

Route	Range	What sets the limit
Property-secured	$20,000 to $5,000,000	Property value, existing debt, LVR, repayment ability or exit
Unsecured, cash flow, line of credit	Typically $5,000 to $500,000	Turnover, bank statements, existing commitments
Equipment finance	Linked to the asset	Price and type of asset, deposit, business strength

Property-secured: equity and LVR

For property-secured loans, the starting point is equity — the gap between what the property is worth and what’s owed against it. Lenders set a maximum loan-to-value ratio (LVR): the total lending against the property as a proportion of its value. The acceptable LVR depends on the property type, location, the lender and the loan.

Illustrative example (rounded): A property is valued at $1,000,000 with $400,000 owing on the home loan. If a lender’s maximum combined LVR for this situation were 70%, total borrowing against the property could reach $700,000 — leaving room of up to about $300,000 for a second mortgage business loan, subject to the lender’s assessment of the purpose and how it will be repaid.

Commercial property, rural property and properties in smaller towns are often assessed at lower LVRs than suburban homes. Short-term loans may be assessed mainly on the exit; longer loans on ongoing repayment ability.

Unsecured: turnover and statements

Unsecured limits are sized on how the business trades. Lenders look at:

• Average monthly turnover — usually from recent bank statements
• Consistency — steady deposits support more than spiky ones
• Existing repayments — other loans reduce what’s left
• Account conduct — dishonours and overdrawn days reduce confidence
• Time trading — longer histories support larger limits

Typical unsecured, cash flow and line-of-credit amounts for trading businesses run from $5,000 to $500,000.

Equipment finance: the asset sets the frame

Equipment finance is generally linked to the price of the asset — sometimes the full amount, sometimes less a deposit or trade-in. The lender also considers the asset’s type, age and resale value, and the business’s ability to repay. Newer businesses or specialised items may need a deposit.

Wondering what your numbers could support? Start a 60-second enquiry — a specialist will give you a realistic range, and there’s no credit check to enquire.

Affordability caps everything

Security tells a lender what it could recover. Affordability tells it whether you can repay without trouble. Even with plenty of equity, a lender will want to see how repayments are covered — from trading, or from a clear exit for short-term loans.

Before you settle on an amount, test it yourself:

1. Add the repayments to a cash flow forecast.
2. Check the closing balance in your quietest months.
3. Allow for tax dates and super each payday.
4. Keep a buffer for surprises.

If the forecast stays comfortable, the amount is likely sensible. If not, borrow less, extend the term (weighing the higher total cost) or stage the project.

Borrow what the milestone needs

It’s tempting to ask for “as much as possible”. But more debt than you need means more cost and more risk. A better approach:

• Cost the milestone properly — the fit-out budget builder helps for premises projects.
• Subtract your contribution.
• Add a sensible contingency.
• Split by type — equipment on equipment finance, works on a business loan, swings on a line of credit.

The funding planner suggests which routes fit your goal, turnover, trading time and property.

Combining limits

Many projects use several facilities, each with its own limit. A café fit-out might use equipment finance for the machines, an unsecured loan for the works and a line of credit in reserve. Together they can fund more than any one facility would — and each is matched to what it pays for.

Why the answer can change quickly

Borrowing capacity isn’t fixed. A few more months of steady statements, lodging overdue BAS, clearing a small default or paying down an existing facility can all change what’s available — sometimes significantly. If the answer today is smaller than you hoped, ask what would move it. Often there’s a clear, achievable path to the amount you need within a few months.

Ways to increase what you can borrow

• Add a contribution. Your own funds reduce the amount at risk and the loan size needed.
• Offer security. Property can lift limits well beyond what turnover alone supports.
• Clear small debts. Fewer existing repayments leave more room for new ones.
• Show consistency. A few more months of steady statements can raise unsecured limits.
• Split the project. Equipment finance for the assets frees other limits for works and working capital.

Get a realistic number

Tell us what you’re funding, what you can contribute, roughly what the business turns over and whether property is involved. A real person will give you a realistic range and the best way to structure it. Enquiring involves no credit check, your enquiry isn’t passed to a queue of lenders, and accurate figures help us give you a number you can actually plan around. Find out how much you could borrow.