How Much Can You Borrow for a Business Loan in Australia?
Call Us: 0432 634 648 |
Business Loans 7 min read

How Much Can You Borrow for a Business Loan in Australia?

The answer depends on your revenue, profit, security, and which type of lender you approach. Here's how it works.

How Much Can You Borrow for a Business Loan in Australia? — Mortgagefy guide

Business loan amounts in Australia vary enormously — from $5,000 in working capital financing to $10 million+ in commercial property lending. The amount you can borrow depends on which type of lending product you're applying for, whether you have security to offer, and how strong your financials are.

Quick Reference: Loan Amounts by Product Type

ProductTypical RangeKey Driver
Unsecured business loan$5K–$500KMonthly revenue
Secured business loan$50K–$5M+Property security + profit
Equipment finance$5K–$5M+Asset value
Invoice financeUp to 90% of debtorsInvoice book size
Commercial property loan$200K–$20M+Property value + income
Line of credit$10K–$500KRevenue + credit history

How Unsecured Lenders Calculate Borrowing Capacity

Fintech and specialist lenders typically base the loan amount on a multiple of monthly revenue — usually 50–150% of one month's average revenue from the last 3–6 months of bank statements.

Example: $80,000/month average revenue × 100% = $80,000 maximum unsecured loan.

They'll also check:

  • That deposits are consistent (not just 1–2 large payments per month)
  • That the account isn't regularly going negative
  • That there are no prior dishonoured payments or ATO debt

How Banks Calculate Borrowing Capacity

Traditional bank business loans are assessed on profitability (EBIT or EBITDA) and debt serviceability. The bank will typically lend up to a multiple of your annual profit, adjusted for all existing debt commitments.

A common assessment: EBITDA × 3–5× (varies by industry and security). A business with $200,000 EBITDA might be approved for $600,000–$1,000,000, depending on security offered.

Unlock the full guide

Want to know how much your business can borrow?

We can assess your borrowing capacity across multiple lender types — free, no obligation.

No spam. No obligation. We respect your privacy.

Or

Impact of Property Security

Offering residential or commercial property as security substantially increases how much you can borrow — typically up to 70–80% of the property's value, minus any existing mortgages.

A business owner with a $900,000 home, $400,000 mortgage, and 80% LVR threshold has $320,000 in usable equity that could support a secured business loan.

ATO Debt and Its Effect

Existing ATO (Tax Office) debt — even if on a payment plan — is a significant red flag for most lenders. They see it as evidence of cash flow problems. Address ATO debt before applying where possible, or disclose it upfront and show a current payment arrangement.

How to Maximise Your Borrowing Capacity

  • Clean up personal credit before applying (any defaults or late payments)
  • Have 6+ months of strong, consistent bank statements
  • Have current BAS statements lodged (no overdue ATO lodgements)
  • Reduce existing personal debts (credit cards, car loans)
  • If offering property security — have an updated valuation ready

Multiple Products, Multiple Amounts

Many businesses use a combination of facilities — a bank term loan for larger capital needs, plus a fintech line of credit for working capital. A broker can help you understand how to structure this to maximise total access without over-leveraging.

Find out your business borrowing capacity

We assess across multiple lender types and can tell you exactly what's realistically available for your business.

You've done the research. Now find out what's available for your business.

Our lending specialist gives you a straight answer based on your business situation — not generic estimates. Free, no obligation, under 3 minutes.

Ready to Find Out What You Can Borrow?

We work with businesses across every stage. Get a clear, honest assessment.

How Much Can You Borrow for a Business Loan in Australia? — Practical Guide for Sydney Borrowers

Understanding how much can you borrow for a business loan in australia? is essential before committing to a home loan, refinance, or investment property purchase. This guide covers the key considerations Australian borrowers face in 2026, the documents you'll need, and how a specialist mortgage broker shortcuts the process.

What Lenders Actually Look At

Lender decisions hinge on three pillars: income (verified, stable, sufficient), expenses and debts (HEM benchmark + actual commitments), and asset/deposit position (savings, gift, equity). Your documentation tells this story — payslips, tax returns, BAS, bank statements, contracts. Specialist lenders weight these differently from major banks, which is why broker selection matters.

Document Checklist

Standard documents: 2 most recent payslips, latest PAYG summary or Notice of Assessment, 3 months bank statements, ID, and proof of deposit. Self-employed applicants additionally need 1–2 years of personal + business tax returns and BAS statements. Investors need rental statements; refinancers need their existing loan statements.

Common Mistakes to Avoid

Applying with one bank only, missing 2 years of self-employed history, undeclared overseas income, applying with multiple credit enquiries in 6 months, or applying with high credit card limits. Each of these can downgrade your application unnecessarily. A broker checks for these before submission.

Working with Mortgagefy

Free 20-minute initial call. We assess your situation, document needs, and target lenders. Strategy and document checklist sent to you within 24 hours. Application lodged within 2–5 days of complete documents. Settlement typically 4–6 weeks. No broker fees — lenders pay our commission upon completion.

Frequently Asked Questions

Who is this guide for?

This guide covers how much can you borrow for a business loan in australia? for Australian borrowers — first home buyers, refinancers, investors and self-employed applicants navigating the 2026 lending environment.

How can a mortgage broker help with this?

A specialist broker compares 40+ lenders, identifies the right product for your situation, and handles the application end-to-end — saving you time and improving approval odds.

What does it cost to use Mortgagefy?

Free for borrowers — lenders pay our commission upon settlement. You receive independent advice, comparison across 40+ lenders, and full application support at no cost.

Do I need a 20% deposit?

Not necessarily. The First Home Guarantee allows 5% deposit with no LMI, family pledge guarantor structures can avoid LMI, and some lenders accept 10% with LMI.

How fast can I get pre-approval?

Pre-approval typically takes 2–5 business days with full documents. We expedite where possible and keep you updated through every stage.

Want to model repayments yourself? Run the numbers in our Sydney home loan calculators before you apply.

Get your free Sydney business owner assessment

Funding options for Sydney business owners — fast, clear, no jargon

Start Your Free Assessment Call 0432 634 648