# How Much Can My Business Borrow?

> "How much can I borrow?" almost always comes down to one thing lenders care about most: can your business comfortably repay it? Here's how lenders size an offer, the typical ranges by product, and how to figure out a number that fits.

## Key takeaways
- Lenders size your offer to what your business can comfortably repay, weighing revenue, cash flow, time in business, credit, existing debt, and collateral.
- Typical ranges vary by product — roughly $5K–$500K for working capital, $10K–$250K for a line of credit, up to the equipment's value for equipment financing, and up to $5M–$5.5M for SBA loans.
- Estimate by starting from monthly revenue (many short-term lenders offer around 1–1.5x), subtracting current debt payments, and checking the payment is sustainable even in a slow month.
- Borrow to the need with a cushion rather than maxing out an offer, since you can often come back for more after building a repayment track record.

## What lenders are really asking

When you ask "how much can I borrow," lenders flip the question: **how much can
this business repay comfortably?** Your offer is sized to fit your ability to
make payments without choking cash flow — not to a number you'd like to hit.

## The factors that set your limit

Most lenders weigh some mix of:

- **Revenue** — often the biggest lever; many revenue-based offers cap at a percentage of annual or monthly deposits
- **Cash flow** — consistent deposits and healthy margins raise your ceiling
- **Time in business** — more history generally unlocks larger amounts
- **Credit** — stronger personal/business credit widens your options
- **Existing debt** — current obligations reduce what you can add
- **Collateral** — assets can support larger or cheaper financing

## Typical ranges by product

Amounts vary by lender, but these ranges give a realistic sense of scale:

- **Working capital loans** — roughly **$5K–$500K**, often sized to a slice of monthly or annual revenue
- **Business line of credit** — commonly **$10K–$250K**, drawn as needed
- **Equipment financing** — typically up to **the value of the equipment** being purchased
- **Invoice factoring** — scales with your **outstanding invoices** (often 80–90% advanced)
- **SBA 7(a) loans** — up to **$5 million**
- **SBA 504 loans** — up to **$5.5 million** for major fixed assets

## A simple way to estimate

You don't need a formula to get close:

1. **Start with monthly revenue.** Many short-term lenders offer somewhere around 1–1.5x monthly revenue, though this varies widely.
2. **Subtract your current debt payments.** Lenders look at how much room is left to service new debt.
3. **Check the payment, not just the total.** Ask: can the business cover this payment every month, even in a slow stretch?

The goal is a payment your business can absorb comfortably — not the biggest
number on the table.

## How much *should* you borrow?

Maxing out an offer is tempting, but the smarter move is to **borrow to the
need**:

- Tie the amount to a **specific use** (inventory, a hire, equipment, a gap)
- Leave a **cushion** so a slow month doesn't make payments painful
- Factor in the **total cost**, not just the headline amount
- Remember you can often **come back for more** once you've built a repayment track record

## Quick ways to raise your ceiling

- Keep your **business bank account healthy** (avoid overdrafts and NSFs)
- **Separate** business and personal finances
- **Pay down** existing balances where you can
- Maintain **steady, growing deposits** over a few months before applying

### Getting matched

The fastest way to learn your real number is to see actual offers. Tell Hoss
Capital about your business once, and we'll match you with lenders and show you
what you can realistically borrow — free, with no hard credit pull to start.

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