Does my turnover affect how much I can borrow?

How turnover shapes facility size

Lenders anchor an offer to the money flowing through the business, because that is what repayments come from. As a rough rule of thumb across the market, a working-capital facility often sits somewhere between one and a few months of turnover, though there is no fixed multiple and it varies widely by lender and by how the business trades. Stronger, more consistent revenue supports the upper end; lumpy or seasonal income tends to pull it down. See how much your business can borrow for the wider picture.

Turnover is not the same as affordability

A high top line with wafer-thin margins can leave very little to service a loan, while a smaller business with healthy margins may comfortably afford more than its turnover suggests. Lenders therefore look past turnover to the surplus cash flow underneath it — revenue minus the costs of running the business. That surplus is the real test. You can sense-check it with the affordability calculator, and read how to know if you can afford a business loan.

What this means for your company

If turnover has grown and stayed steady, that strengthens the case for a larger facility. Credicorp sizes lending against the company's actual trading and cash flow, lending to the business with no personal guarantee. The strongest position is consistent revenue plus a clear surplus after costs — that combination, not turnover alone, is what unlocks a bigger figure. If revenue is rising, a facility can often grow with it; see can I increase my credit facility limit.