How lenders size business loans
Lenders look at whether the business's cash flow can cover the repayments with room to spare, along with its trading history, accounts and any security. Many look at how many times the business's earnings cover its debt payments.
Worked example
A repayment of £2,000 a month at 8% over 5 years would repay a loan of about £98,636.87, with £21,363.13 of interest.
Before you apply
This is an estimate. Lenders make their own decision based on your full circumstances and credit history.
Base the repayment on realistic cash flow forecasts, leaving room for quieter months.
Inputs for the business loan borrowing calculator
Monthly payment you can afford
The repayment your business's cash flow can comfortably support.
Interest rate (per year)
The annual interest rate on your loan. The rate shown is only an example, so enter the rate from your quote.
Term
How many years you'll repay over. A longer term means paying interest for longer.
CALCULATOR QUESTIONS
Business loan borrowing calculator questions
How much can my business borrow?
It depends on cash flow, trading history and security. Enter an affordable repayment above for an estimate.
What do lenders look at?
Cash flow, accounts, trading history, existing debts and any security offered.
Will I need a personal guarantee?
Smaller businesses are often asked for one.
Is this a guarantee?
No. The lender decides.