Commercial Loan - How much can I borrow?
When borrowing for business or commercial purposes, how much you can borrow will be determined on a case-by-case basis, depending on your risk profile. This may include aspects such as the industry you are in and the type of security you hold (e.g. residential versus commercial property).
Find out your business and commercial loan borrowing capacity
To find out how much you can borrow for business or commercial purposes, or to talk to a commercial finance broker about the loan that is in your best interest, simply fill in the form below or call anytime on 13 LOAN (direct on +61 2 9249 3739).
Generally, your borrowing capacity will be expressed as an interest cover multiple. Interest cover equals your net income before tax and depreciation divided into interest expense.
A fully secured loan such as a commercial property loan restricted to a maximum loan-to-value ratio (LVR) of 65 per cent may be based on an interest cover multiple of 1.25 -1.5 times.
A business loan secured by cash flow and/or partly secured by property may need an interest cover of three times or more.
