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:
- Start with monthly revenue. Many short-term lenders offer somewhere around 1–1.5x monthly revenue, though this varies widely.
- Subtract your current debt payments. Lenders look at how much room is left to service new debt.
- 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.