Estimate your business borrowing capacity from monthly revenue, time in business, and credit profile. Indicative ranges by product type — term loan, line of credit, equipment financing, SBA, and MCA.
Frequently Asked Questions
How do lenders calculate borrowing capacity?
Most lenders cap loan amount at 8–15% of trailing 12-month revenue, then layer DSCR (1.15×+), credit, and collateral. SBA and bank lenders use stricter underwriting; non-bank lenders are looser.
What's a typical loan-to-revenue ratio?
Short-term: 8–15% of TTM revenue. Term loan / SBA: up to 100% of EBITDA × multiple. Equipment: up to 100% of equipment value. Line of credit: 10–20% of TTM revenue.
Does this estimate include SBA loans?
SBA capacity is included as a separate range — SBA can fund up to $5M (7a) or $5.5M (504), but capped by your business's ability to service the debt.
How does credit score affect capacity?
Higher score = larger amount and lower rate. Below 600 typically limits options to MCA and short-term working capital. 680+ unlocks bank and SBA.
Does time in business matter?
Yes — most lenders require 6+ months. Banks and SBA require 2+ years. Longer history = larger amount, better rate.
Are these numbers guaranteed?
No — they're indicative ranges based on common underwriting heuristics. Actual offers depend on industry, profitability, collateral, and lender-specific guidelines.
What if I have existing business debt?
Existing debt service reduces capacity for new debt because lenders calculate DSCR on combined obligations. Pay down existing debt before applying when possible.
Can I borrow against future revenue?
Yes — that's how MCAs work. The advance is sized as a multiple of average monthly card sales, typically 80–150%.
How do I increase my borrowing capacity?
Grow revenue, build business credit (Paydex 80+), separate business and personal finances, file consistent tax returns, and reduce existing debt.
Should I apply for the maximum I can borrow?
No — borrow what you need for a clear ROI use case. Larger loans mean larger monthly payments and tighter cash flow. Use the DSCR calculator to size the right amount.