How much can I borrow for a business loan

If you have been wondering how much I can borrow for a business loan, firstly you need to understand what type of business loan is best suited to your needs. The amount you can borrow for a business loan will depend on several factors and eligibility criteria. Generally, you can borrow up to 80% of your business’s free cash flow (the amount left over each month after your bills are paid) if you are considering an unsecured business loan. If you are opting for a secured business loan and are willing and happy to use assets, such as property as security against the loan, you might be able to borrow a higher percentage. A business loan, as opposed to borrowing equity, allows you to maintain full management and control.

What types of business loans are available?

The three most common business loans available are unsecured and secured loans and overdraft facilities. How much you can borrow for a business loan will in part depend on which option you choose.

Unsecured term loans

An unsecured business loan is when you borrow money without providing any form of collateral as security. Collateral could include things such as residential property, a business property, a vehicle, savings, unpaid invoices or stock and is used as security by the lender in the event you should default on your loan. In terms of how you can borrow for a business loan, most lenders will make their assessment based on your personal and business finances. You will also need to meet income and credit requirements.

Secured term loans

A secured business loan involves putting up collateral as security over the loan, to safeguard the lender if you should default on your repayments. In the event you default on your loan the lender has the right to recover their losses by taking ownership of your collateral used as security over the loan. In some cases, because the loan is secured and the lender is taking on less risk, you might be able to borrow more than an equivalent unsecured loan. It might also allow you to apply for a longer-term loan.


An overdraft is a flexible financing solution that provides businesses access to funds when they need them. They are particularly useful for businesses with varying borrowing requirements and irregular cash flow. The amount you will be able to borrow will largely be based on your business’s annual revenue. Basically, once approved, an overdraft works as a revolving line of credit, meaning that you can draw funds up to that limit as needed without having to go through the approval process again. Business overdrafts are offered as secured and unsecured facilities.

What else should I be aware of when working out how much I can borrow for a business loan?

Aside from the interest rate, it is also important to be aware of any fees and charges associated with the loan you are looking to take out. Things to look out for include application or origination fees (fees for setting up the loan), direct debit fees and early repayment fees.

How to calculate how much you can borrow for a business loan

To calculate how much can I borrow for a business loan, why not use our business loan calculator? Simply input the amount you are looking to borrow, your preferred repayment schedule and loan period, as well as whether or not you own property, and our system will estimate your repayments. Keep in mind that these figures are just estimates. The exact figures will depend on your application and whether you are applying for a secured or unsecured loan.

Whilst having an idea of how much you can borrow for a business loan is helpful, it is important to also look at how much you can realistically afford to borrow and repay. Below are a few things you might want to ask yourself when considering taking out a business loan.

  • Does the business have the means to make the repayments? How will they work into the business’s cash flow?
  • Do I have assets to act as security and if so, am I comfortable to use them?
  • Is the benefit gained from having a business loan worth the cost of the loan?
  • How likely is your business to have unexpected expenses that could cause problems with making repayments?


What loan terms are available for business loans?

At Dynamoney, our loan terms range from 6 months to 3 years depending on what works best for your business.

What are the minimum and maximum amounts I can borrow for a business loan?

With our business loans, you can borrow from as little as $5,000 up to $500,000 depending on your business’s revenue, whether or not you own property and other criteria including the type of loan you are considering.

How much can I borrow for an overdraft?

For an overdraft, we allow customers to borrow anywhere from $5,000 up to $100,000, This is dependent on a range of criteria including if you own property or not and your credit eligibility.

Do I need to have a deposit for apply for a business loan?

Generally speaking, no you don’t. Check out our 5 step guide to find out more.

What are the eligibility requirements for a business loan?

At Dynamoney, we require the following criteria to be met when applying for a business loan:

  • Trading for a minimum 24 months
  • You must have a minimum credit score of greater than 500
  • You must be GST registered for a minimum of 12 months

How do I apply for a business loan?

We offer a simple application process. For more information, check out our in-depth guide and get started today.

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