Before you calculate how much you can borrow for a business loan, it's important you know your financial limits. You should calculate:
- if you need the money up-front or on a needs basis
- what maximum repayment you can afford
- what your loan to value ratio (LVR) is
- what assets you have to offer if you need collateral
- who will be willing to guarantee your loan if you need a guarantor
- how much equity you have
- what maximum percentage share of your business you are willing to offer to investors.
The amount you'll be able to borrow as a business loan will also be determined by examining your business's annual gross income, existing debt, and creditworthiness.
To start a conversation with one of our Business Banking Specialists about a Business Loan today, request a callback here.
And to get a better understanding of Business Finance, check out our handy How-To Guide.