How much can my business borrow?

Applying blind for 'as much as possible' wastes time when the amount, term or product does not fit how lenders underwrite UK SMEs. A sensible range helps you plan purchases, cash flow and which route to explore — unsecured term loan, secured borrowing, asset finance or tax bill spreading.

This calculator combines two lenses lenders use: a turnover-based ceiling (with a lower cap for younger businesses) and an affordability cap from net profit after existing monthly repayments. The range you see is the lower of those constraints — not a promise of approval.

Turnover range applies a low and high percentage to your annual revenue. Businesses trading five years or more use a 10%–25% band; under two years uses a 15% high cap instead of 25%. Affordability takes 35% of monthly net profit minus existing monthly repayments, then calculates the maximum loan that payment could support at your chosen representative APR and term.

The displayed range runs from the turnover low to the lesser of turnover high and affordability cap. Security selections do not change the range in this version — they filter product suggestions such as business loans, commercial mortgages or asset finance.

If the range looks workable, use the business loan repayment calculator to compare term loan, revolving credit and MCA total cost of credit on your target amount. If the pressure is a VAT or corporation tax bill rather than general borrowing, try the tax bill spreader to model monthly cost versus paying HMRC in one lump sum.

When you are ready for a real figure, Tera compares options from our lender panel — no broker fee to you. Edit the assumptions above to mirror your management accounts and share the URL with your accountant or co-director.