How much can my business borrow?

2 min read

£5k–£250kTypical short-term facility range

~1 monthTurnover as a rough starting point

What drives the figure

Three things move the number more than anything else. Turnover shows the scale of cash flowing through the business each month. Trading history shows the pattern is stable rather than a one-off spike. And affordability — whether the repayments fit alongside your existing commitments — is the test that ultimately sets the ceiling.

Lenders also weigh the consistency of your bank inflows, your sector, and any existing debt. A business with steady, predictable receipts can usually support more than one with lumpy or seasonal income of the same headline size.

Typical ranges in the market

Short-term business finance generally sits anywhere from around £5,000 to £250,000, with most working-capital facilities landing somewhere in the middle. These are market-typical figures, not a Credicorp quote — your offer is set on your own numbers.

A widely used starting point is to look at roughly one month of turnover. A company turning over £40,000 a month might reasonably explore a facility in the tens of thousands; a larger business proportionately more. The aim is an amount that solves the cash-flow need without stretching repayments uncomfortably.

Borrow for the need, not the maximum

The most you can borrow is rarely the right amount to borrow. Every extra pound carries interest, so the smart figure is the one that covers the actual gap — the stock order, the payroll run, the VAT bill — with a small buffer, and no more.

If your needs grow later, a short-term facility can often be topped up or renewed once you've shown a clean repayment record, rather than over-borrowing up front. Borrowing tightly also keeps repayments comfortable, which protects your cash flow if a month comes in soft.

What this means for your company

Before you apply, have a clear figure and a clear purpose. Three months of business bank statements will usually tell you, and the lender, roughly what's supportable. Because Credicorp lends to the limited company with no personal guarantee, the affordability assessment is about the company's cash flow, not your personal assets.

When you're ready, you can start an application and see an indicative amount based on your own trading.

Frequently asked questions

Does a higher turnover mean I can always borrow more?

Usually, but not automatically. Turnover sets the scale, but affordability and the consistency of your cash flow decide the ceiling. Steady receipts support more than the same turnover arriving in unpredictable lumps.

What's the smallest amount I can borrow?

Short-term facilities often start around a few thousand pounds. The right minimum is whatever covers your actual need without leaving a shortfall.

Can I increase the amount later?

Often yes. A clean repayment record can support a top-up or a renewed, larger facility, which is usually better than over-borrowing at the outset.