How much can you actually borrow?

Not how much you want — how much your cash flow supports at the coverage ratio a lender will insist on.

Annual cash flow available

Profit before owner's salary, interest, tax and depreciation, less what you need to live on.

Debt payments you already make

Annual, across all existing business debt.

Coverage the lender wants

Most want 1.15–1.25×. Higher is stricter.

Interest rate

Term

Most you could borrow

Monthly payment that supports

Cash free for debt

Guaranty fee on that

What the term does to it

same cash flow, different lengths

Stretching the term buys borrowing capacity. It also means more total interest, and terms of 15 years or more bring a prepayment penalty that a ten-year loan avoids entirely. Longer is not free.

This is capacity, not approval

A lender also looks at collateral, your credit, how long the business has traded, and whether the industry worries them. Use this to size the conversation, then check the eligibility rules.