How Much Business Funding Can I Qualify For?

The question every business owner asks before applying for funding: "How much can I actually get?" The answer depends on five core factors that lenders evaluate. Understanding these factors helps you set realistic expectations and choose the right financing product.

At Liminal Lending, we work with 75+ lenders across SBA loans, term loans, lines of credit, equipment financing, and merchant cash advances. Each product has different qualification thresholds. Let me break down exactly what determines your funding capacity.

The Five Factors That Determine Your Loan Amount

Every lender weighs these five factors, though the emphasis varies by loan type. Here is what actually matters and how each factor impacts your maximum funding:

1. Annual Revenue: The Primary Driver

Your gross annual revenue is typically the single biggest factor in determining loan size. Most lenders use revenue as a baseline multiplier for maximum loan amounts.

Here is a realistic picture of what different revenue levels typically unlock:

2. Time in Business: The Trust Factor

Lenders view operating history as a proxy for stability. The longer you have been in business, the more confident they are in your ability to repay.

3. Credit Score: The Gate-Keeper

Personal credit score (FICO) determines which loan products you can access. Business credit matters too, but personal credit is usually the primary checkpoint.

4. Existing Debt: The Capacity Test

Lenders calculate your debt service coverage ratio (DSCR) — how much cash flow you have after paying existing debts. More existing debt means less capacity for new debt.

• DSCR requirement: Most lenders want 1.15x-1.35x coverage (you have $1.15-$1.35 for every $1 in debt payments)
• Existing loan payments: Monthly obligations reduce your borrowing capacity dollar-for-dollar
• Credit utilization: High credit card balances signal risk and reduce capacity
• Seasonal cash flow: Variable revenue may require higher DSCR cushion

Example: If your business generates $15,000/month in free cash flow and you have $5,000/month in existing debt payments, you have $10,000 available for new debt. At 1.25x DSCR, you could support about $8,000/month in new loan payments.

5. Industry: The Risk Adjustment

Some industries are viewed as higher risk by lenders, which affects both approval odds and loan amounts. Here is how industries typically stack up:

Funding Ranges by Loan Type

Different loan products have different maximum amounts and qualification requirements. Here is what each product typically offers:

Calculate Your Estimated Funding Capacity

Use these calculators to estimate what you might qualify for based on your specific situation:

• [SBA Loan Calculator](/resources/calculators/sba-loans) — Estimate payments and qualification for SBA 7(a) and 504 loans
• [Term Loan Calculator](/resources/calculators/term-loans) — Model different loan amounts, rates, and terms
• [Line of Credit Calculator](/resources/calculators/line-of-credit) — Understand revolving credit costs and limits
• [Invoice Factoring Calculator](/resources/calculators/invoice-factoring) — Calculate advance rates and factoring fees
• [Merchant Cash Advance Calculator](/resources/calculators/merchant-cash-advance) — See the true cost of MCA funding

How to Increase Your Funding Capacity

If the numbers do not work for what you need today, here are concrete steps to increase your borrowing capacity:

• Increase revenue — Even 3-6 months of higher revenue improves your profile
• Pay down existing debt — Every dollar freed up increases new loan capacity
• Improve credit score — Pay down credit cards below 30% utilization
• Add time in business — Waiting 6-12 months can unlock better products
• Build cash reserves — 3+ months operating expenses shows stability
• Strengthen documentation — Clean financials make underwriting easier

The Realistic Assessment

Here is the honest truth: many business owners overestimate what they can qualify for and underestimate how long the process takes. Set realistic expectations based on your actual numbers.

If you have $300K in annual revenue, 18 months in business, and a 650 credit score, you are probably looking at $50K-$100K from most lenders — not $250K. That is not a bad thing. It is a starting point.

We work with businesses across this entire spectrum. Whether you need $25K for working capital or $2M for an acquisition, understanding where you stand helps us match you with the right lenders who will actually say yes.