Borrowing Limits by Product
Each type of business finance has a different approach to calculating how much you can borrow. Here is a clear overview of what to expect across the products Caply works with.
| Product | Typical Range | How the Limit Is Calculated |
|---|---|---|
| Business Loan | £1,000 to £500,000 | Based on annual turnover, net profit, and credit profile. Many lenders offer up to 25% of annual turnover as a starting point. |
| Merchant Cash Advance | £1,000 to £500,000 | Typically between one and two times your average monthly card turnover, assessed over the last three to six months. |
| Invoice Finance | £5,000 to £5 million | Up to 90% of the value of your eligible outstanding invoices. The limit grows automatically as your sales ledger grows. |
| Growth Guarantee Scheme | £1,000 to £2 million | Assessed on business viability and repayment ability. The government guarantee allows lenders to consider businesses they might otherwise decline. |
The Key Factors That Determine Your Limit
Across all products, lenders use a similar set of criteria to decide how much to offer. Understanding these gives you a clearer picture of where you stand before you apply.
How to Maximise Your Borrowing Potential
There are practical steps you can take before applying that can meaningfully increase the amount lenders are willing to offer.
Tidy up your bank account before applying. Lenders review the last three to six months of statements. Avoid unnecessary overdraft use, returned payments, or large unexplained withdrawals in the period leading up to your application.
Reduce existing debt where possible. Paying down existing facilities before applying for new finance reduces your current commitments and increases the repayment headroom lenders will factor in.
Have up to date accounts ready. Filed accounts that show healthy turnover and profit give lenders more confidence to offer higher amounts. Outdated or unfiled accounts can limit what is available to you.
Be clear about what the money is for. A lender who understands exactly how the funds will be used and what the expected return is will always be more comfortable offering a higher amount than one assessing a vague request.
Use a broker to access the full market. Different lenders offer different multiples of turnover and use different scoring models. A broker can identify which lenders are most likely to offer the highest amount for your specific profile.
How Much Should You Actually Borrow?
Just because a lender is willing to offer a certain amount does not mean borrowing the maximum is the right decision. Borrowing more than you need increases your repayment costs and reduces your financial flexibility.
Cover the specific need
Size the loan around the actual cost of what you are funding, whether that is a piece of equipment, a stock order, or a cash flow gap.
Include a sensible buffer
A small buffer above your immediate need protects you if costs come in higher than expected or if the project takes longer to deliver a return.
More than your cash flow supports
Calculate the monthly repayment before you commit and make sure it is comfortably affordable across both strong and quieter trading months.
To cover ongoing losses
Finance works best when it funds growth or bridges a temporary gap. Borrowing to sustain a loss-making business creates a cycle that is difficult to exit.
Find Out What Is Available to Your Business
The fastest way to find out exactly how much your business can borrow is to speak to a broker who knows the market. At Caply, we assess your situation, identify the products and lenders best suited to your profile, and give you a clear picture of what is realistically available before you make any decisions.
Whether you are looking for a business loan, a merchant cash advance, invoice finance, or funding through the Growth Guarantee Scheme, we work with a panel of lenders across the full range and access them through a single soft search that does not affect your credit score.