How much can my company borrow? Calculator
Enter your annual EBITDA and existing loan repayments to see an indicative borrowing capacity, using a common lender affordability benchmark.
Indicative borrowing capacity
£786,000
- Affordable monthly repayment
- £16,667
- Cover ratio assumed
- 1.25×
Based on keeping profits at least 1.25 times your total loan repayments, a common lender benchmark. Lenders also weigh turnover, credit history, security and sector, so real offers can be higher or lower.
Check eligibility for this amountIllustrative only. Actual rates, fees and terms depend on your circumstances and the lender. This is not an offer of finance.
How this calculator works
The estimate works backwards from affordability: it finds the loan whose repayments keep your profits at least 1.25 times your total annual loan repayments, a benchmark many lenders use.
It is a starting point, not a limit. Lenders also consider turnover, the trend in your accounts, credit history, security, sector and what the money is for. Asset finance and invoice finance are assessed differently and can add to what you can raise.
The result shows two figures: the affordable monthly repayment and the loan that repayment could support at the rate and term you enter. The monthly figure depends only on your EBITDA and existing repayments. The loan figure then changes with the rate and term, so try several. A shorter term or higher rate gives a smaller indicative loan from the same affordable repayment.
For illustration only: with EBITDA of £300,000 and existing repayments of £40,000 a year, the affordable repayment is about £16,670 a month. At an example 10% rate, that supports roughly £517,000 over 3 years, £784,000 over 5 years and £1,004,000 over 7 years. Lenders may not offer the longer terms for unsecured lending, so the shorter figure can be more realistic.
The estimate uses a single cover ratio of 1.25×. Some lenders want more headroom, and some also cap unsecured lending at a share of annual turnover or by the company’s net assets. Different products are sized in different ways: asset finance mainly against the asset, and invoice finance against your sales ledger.
How much can my company borrow? Calculator: common questions
Is this how much a lender will offer?
No, it’s an affordability guide. Offers depend on the lender’s full assessment. Our 60-second eligibility check is the quickest way to see realistic options, without affecting your credit score.
Can a newer company borrow?
We work with UK limited companies, LLPs and partnerships of four or more partners.
How can I increase what I can borrow?
Longer terms, security (such as assets or invoices), up-to-date management accounts showing growth, and clearing expensive short-term debt can all help.
Does existing debt reduce how much I can borrow?
Usually, yes. Every pound of existing annual repayments reduces the room left for new repayments at a given cover ratio. Clearing or refinancing expensive short-term debt over a longer term can free up capacity. Remember to include hire purchase, leases and merchant cash advances in existing repayments, not just loans.
How much can a limited company borrow?
It depends mainly on affordability, shown by profits after existing repayments, and on the lender’s view of the company’s accounts, credit history, security and sector. This calculator gives an indicative figure based on a common cover ratio. Real offers can be higher with security or lower if lenders apply turnover caps or extra headroom.
Does turnover or profit matter more when borrowing?
Both matter. Profit, often measured as EBITDA, shows whether the company can afford repayments. Turnover shows scale, and some lenders use it to set minimum requirements or a cap on unsecured lending. Invoice finance relies more on the value and quality of your invoices than on profit.
Why is my borrowing capacity zero?
It shows zero when your existing repayments already use up the affordability at the assumed 1.25× cover. That doesn’t always mean no finance is possible: refinancing existing debt, asset finance or invoice finance can sometimes be options, depending on the lender. Speak to us and we’ll explain what may be realistic.
Check in 60 seconds
Get real figures for your company
Checking won’t affect your credit score. No obligation.
- No impact on your credit score
- One request, several lenders: we’re a broker, not a lender
- For UK limited companies, LLPs and partnerships of 4+ partners
- No fee to you: we’re paid by the lender
Step 1 of 3 · about 60 seconds