Quick answer
Australian businesses can typically borrow $5,000 to $500,000 unsecured, sized on turnover and bank statements, or $20,000 to $5,000,000 secured against residential or commercial property. Unsecured limits follow your monthly deposits and existing debts. Secured limits follow your equity: the property's value, less what's owed, within a lender's loan-to-value limit. The comfortable amount is what your cash flow can repay.
Key points
- Unsecured: typically $5,000 to $500,000, sized on turnover and bank statements
- Secured: $20,000 to $5,000,000, sized on property equity
- Existing debts and repayments reduce what's available
- What you can borrow and what you should borrow are different numbers
“How much can I get?” is the first question almost everyone asks. It’s a good question. It’s just not the most important one. The most important one is “how much can the business comfortably repay?” We’ll answer both.
Route one: borrowing on turnover (unsecured)
Unsecured, cash-flow and line-of-credit options for trading businesses are typically $5,000 to $500,000. Lenders size them from your bank statements:
- Average monthly deposits over the last few months;
- Consistency: steady beats spiky;
- Existing repayments to other lenders, which come straight off your capacity;
- Dishonours or overdrawn days, which reduce confidence;
- Time in business, which affects how much history they can rely on.
Every lender uses its own formula, so two lenders can offer different limits to the same business. That’s one reason we match you rather than send you everywhere.
Route two: borrowing on equity (secured)
Property-secured business loans run from $20,000 to $5,000,000 against residential or commercial property. The sum looks like this:
| Step | Illustrative figure |
|---|---|
| Property’s estimated value | $900,000 |
| Lender’s maximum combined LVR (example only) | 70% = $630,000 |
| Less existing mortgage | –$410,000 |
| Room for a business loan | $220,000 |
The 70% is just to show the method. Real limits depend on the lender, the property type and location, and whether the loan sits first or second. A valuation confirms the final figure.
Want the real number? Our expert can rough it out on a single call. Start your enquiry in 60 seconds, no credit check, and we’ll do the sums together.
Can borrow vs should borrow
Here’s where we’re different. We think the right amount is the one your business can carry without strangling wages, stock or tax. Try this test with your own figures in the repayment planner.
Illustrative comparison
A made-up café banking $42,000 a month asks about $120,000. A lender might approve it. But look at the repayments with invented quotes:
| Amount | Total cost (quoted) | Term | Monthly | Share of turnover |
|---|---|---|---|---|
| $120,000 | $30,000 | 24 months | $6,250 | 14.9% |
| $80,000 | $18,000 | 24 months | $4,083 | 9.7% |
| $80,000 | $26,000 | 36 months | $2,944 | 7.0% |
For a business on café margins, 14.9% of turnover is a big slice. The smaller amount over a longer term is far easier to live with. The best answer depends on what the money will earn. Our repayment comfort test guide goes through it step by step.
What shrinks your borrowing power?
- Existing loans and merchant advances. They come off the top.
- Tax debt. Lenders will want to know how it’s being handled.
- Lumpy deposits. Seasonal businesses may be assessed on a longer period.
- Personal money in the business account. It confuses the real figure.
- A lower valuation than expected. Keep your property estimate realistic.
What grows it?
- Property security. The single biggest lever.
- Clean, steady statements. Six tidy months can change the picture.
- Consolidating debts. Replacing three small loans with one can free up capacity.
- A clear, earning purpose. Money that grows turnover is easier to justify.
The ATO’s small business benchmarks let you compare your business’s performance with similar businesses in your industry. They’re a handy reality check on your margins before you decide what you can carry.
What our expert will ask you on the call
- What do you bank in a normal month, and a slow one?
- What do you repay to other lenders now?
- Do you own property? What’s it worth and what’s owed?
- What’s the purpose, and will it lift turnover or cut costs?
- How quickly do you want to be debt-free?
Myth or reality: borrowing limits
“Lenders lend a fixed multiple of turnover.” There’s no universal multiple. Each lender has its own method, which is why two offers for the same business can differ.
“My property’s value is what I can borrow.” You borrow against equity, not value, and within the lender’s limit. What’s owed comes off first.
“A bigger approval is a better approval.” Only if the repayments sit comfortably. Borrowing less can be the smarter result.
The quick estimate you can do tonight
- Average your last six months of business deposits.
- Add up what you already repay to other lenders each month.
- Decide the repayment you could comfortably carry in your slowest month.
- Plug that repayment, a term and a cost estimate into the repayment planner, and adjust the amount until it fits.
Combining secured and unsecured borrowing
Some businesses use both: a property-secured loan for a big, long-life purchase, and a smaller unsecured facility for everyday working capital. That can work well, but lenders look at the combined repayments, so plan the two together. Adding an unsecured loan on top of a fresh secured loan without checking the total is one of the fastest ways to over-borrow.
Find your number
Your borrowing power is a range, not a single figure. The sweet spot is the amount that does the job and still lets you sleep.
Step 1 is a 60-second enquiry. There’s no credit check to enquire, we don’t push your details out to a crowd of lenders, and a real expert works out your range with you. Please fill in turnover, debts and any property details accurately, so the number we land on is one you can rely on.
Frequently asked questions
How do lenders work out an unsecured business loan limit?
Mostly from your bank statements: average monthly deposits, how consistent they are, and what you already repay to other lenders. Each lender has its own formula, so limits can vary for the same business.
How do lenders work out a secured limit?
They take the property's value, apply their maximum loan-to-value ratio for that property type, then subtract what's already owed. What's left is the most the property can support.
Can I combine secured and unsecured borrowing?
Sometimes. A business might hold a property-secured loan for a big purchase and a smaller unsecured facility for working capital. Lenders will look at the combined repayments.
Does my credit score change how much I can borrow?
It can. Weaker credit may reduce unsecured limits or narrow the lenders available. Property security tends to soften the impact.
Why might a lender offer less than I asked for?
Usually because the repayments look too heavy against turnover, because existing debts already take a big share, or because the property's valuation came in lower than expected.