If you run a business or want to buy a commercial property, one of the first questions on your mind is usually the most practical one: how much can I actually borrow? The honest answer is that there's no single number. Your borrowing capacity depends on what you're funding, the security on offer, the strength of your business, and the lender's appetite for your type of deal. This guide explains the levers that move the number up or down, so you can plan with realistic expectations and present your strongest possible case.
Serviceability is the single biggest factor in how much you can borrow. Lenders want to see that your business generates enough surplus cash to meet repayments with room to spare, even if conditions tighten. For an established business, they'll typically look at your last one to two years of tax returns, financial statements and business activity statements to understand revenue, profit and how consistent that profit is.
Lenders also build in a buffer. Rather than assessing repayments at face value, they "stress test" your capacity against a higher assessment figure to make sure you could keep up if costs rose. The stronger and more stable your net profit, the more comfortably you'll clear that test — and the more you'll be able to borrow.
Most larger commercial and business loans are secured against an asset. The type and quality of that security has a big influence on both the amount you can access and the terms on offer.
For commercial property purchases, lenders generally expect a meaningful contribution from you. The exact proportion varies by lender, property type and how the property will be used — owner-occupied premises are often viewed differently to a pure investment. The more equity or deposit you bring, the lower the lender's risk and the larger the loan you're likely to be offered. If you already own property with built-up equity, that equity can sometimes be used in place of, or alongside, a cash deposit.
Preparation makes a real difference. Having your paperwork organised before you apply not only speeds things up, it signals that you run a well-managed business. Commonly requested items include:
If your business is newer or your financials are still maturing, don't assume the door is closed. Some lenders cater specifically to growing businesses, and certain products rely more on the security or projected cash flow than on years of history. The key is matching your situation to the right lender rather than applying everywhere at once.
Purpose matters. A loan to buy commercial premises you'll operate from is a different proposition to a working-capital facility, an equipment purchase, or funding a one-off expansion. Each has its own typical structures, terms and assessment approach. Being specific about the purpose helps a broker steer you toward the products that genuinely fit — and away from those that don't.
As a Sydney mortgage and finance broker, OLEND works across 40+ lenders and a wide range of products. Founder Kevin Oliveira brings more than a decade of experience in Australian finance and banking, and helps business owners understand their realistic borrowing capacity before they apply — then packages the application to give it the best chance. You can read more about how we structure these deals on our commercial loans and business loans pages.
Rather than guessing your number or applying blind, the smarter first step is a conversation about your specific situation. We'll look at your goals, your figures and the security available, and give you a clear, honest picture of where you stand.
This article is general information only and does not take into account your objectives, financial situation or needs. It is not credit or financial advice. Borrowing capacity, terms and eligibility vary between lenders and depend on your individual circumstances and responsible lending assessments. Please seek advice tailored to your situation before making a decision.